What specific amounts are included in the payrolls applicable to officials based on job positions after the salary reform in Vietnam in 2024?

What specific amounts are included in the payrolls applicable to officials based on job positions after the salary reform in Vietnam in 2024? - asked Mrs. T (Hanoi)

What specific amounts are included in the payrolls applicable to officials based on job positions after the salary reform in Vietnam in 2024?

According to the spirit of the Resolution on the state budget estimate for 2024, which was passed by the National Assembly on the morning of November 10th, a comprehensive reform of salary policy will be implemented in accordance with Resolution 27-NQ/TW of 2018.

Resolution 27-NQ/TW of 2018 unifies the salary reform in 2024 by abolishing the statutory pay rate and current salary coefficient and establishing a base pay amount in the new payrolls.

The new payrolls system is designed based on job positions, professional titles, and leadership positions, replacing the current payrolls system. It will convert old salaries to new salaries, ensuring that they are not lower than the current salaries. The system includes:

Payrolls 1: Applicable to officials and public employees holding leadership positions (elected and appointed) in the political system from the central to commune level.

Payrolls 2: Applicable to officials and public employees without leadership positions, based on professional titles and job groups.

Thus, the new payrolls will be structured as follows:

- Base pay: Approximately 70% of the total salary fund.

- Allowances: Approximately 30% of the total salary fund.

- Bonus payment: Approximately 10% of the total annual salary fund, excluding allowances.

Therefore, the payrolls applicable to officials and public employees in 2024 during the salary reform will include three components:

- Base pay (70% of the total salary fund)

- Allowances (approximately 30% of the total salary fund)

- Bonus payment (approximately 10% of the total annual salary fund, excluding allowances)

What specific amounts are included in the payrolls applicable to officials based on job positions after the salary reform in Vietnam in 2024?

Will the payrolls for officials based on job positions increase by 30% after the salary reform in Vietnam in 2024?

According to the Government's electronic portal, Minister of Home Affairs Pham Thi Thanh Tra stated that under the salary reform plan, starting from July 1st, the average salary for officials and public employees is expected to increase by approximately 30% (including both base pay and allowances).

From 2025 onwards, this salary level will continue to be adjusted with an average annual increase of about 7%.

Although we have not implemented the salary reform in the past three years, we have adjusted the statutory pay rate twice, resulting in a 29.5% increase. Therefore, when calculating the total increase from 2021 (the expected implementation time of the salary reform according to Resolution 27-NQ/TW) until July 1st, the salaries of officials and public employees have increased significantly on average, about 60%. Although this figure may not be extraordinary, it is a considerable increase compared to the average annual increase of 7% without implementing the salary reform.

Therefore, when implementing the salary reform policy on July 1st, 2024, the salaries of officials based on job positions will increase by approximately 30% (including both base pay and allowances).

From 2025 onwards, the salaries of officials based on job positions will continue to be adjusted with an average annual increase of about 7%.

What are the principles of formulation of 02 new payrolls for officials after the salary reform in Vietnam in 2024?

Principles of formulation of Payroll 1:

Pursuant to Resolution 27-NQ/TW of 2018, it was agreed to establish a position-based payroll for officials holding leadership positions (elected and appointed) in the political system from the central to commune level, based on the following principles:

+ The salary level must reflect the hierarchy in the political system; officials holding specific leadership positions will receive salaries corresponding to those positions. If a person holds multiple positions, they will receive the highest salary level among those positions. If two leadership positions are equivalent, they will receive the same salary level. The salary level of higher-level leaders must be higher than that of lower-level leaders.

+ A specific salary level is determined for each type of equivalent position. There is no classification by ministries, sectors, departments, committees, or central-level equivalents when constructing the position-based payroll at the central level. Different salary levels for the same leadership position based on the classification of local administrative units are implemented through the allowances system.

+ The classification of equivalent leadership positions within the political system for designing the position-based payroll is decided by the Politburo after reporting to the Central Executive Committee.

Principles of formulation of Payroll 2:

Pursuant to Resolution 27-NQ/TW of 2018, it was agreed to establish a professional and technical payroll based on the officials' rank, applicable to officials without leadership positions. Each rank will have multiple salary levels based on the following principles:

+ For jobs with the same level of complexity, the salary levels will be the same. For jobs with higher labor conditions and professional benefits, they will be implemented through allowances. The ranks and number of salary levels within the ranks for officials, public employees, and promotion of officials and public employees to enhance their professional and technical qualifications will be rearranged.

+ The appointment to the officials' rank or the title of public employees must be linked to the job position and the structure of the officials' ranks and titles, which are implemented by the managing agencies, organizations, and units for officials and public employees

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