What are the payrolls for public employees after the salary reform in Vietnam from July 1, 2024?
What are the payrolls for public employees after the salary reform in Vietnam from July 1, 2024?
Pursuant to Resolution 104/2023/QH15 on the state budget estimate for 2024, starting from July 1, 2024, a comprehensive reform of salary policies will be implemented based on Resolution 27-NQ/TW in 2018.
Resolution 27-NQ/TW in 2018 stipulates the construction of new payrolls for 2024 based on job positions, titles, and leadership positions to replace the current payroll system. The transition from old salaries to new salaries will be made, ensuring that the new salaries are not lower than the current ones.
There are 02 types of payrolls applicable to public employees in 2024 based on job positions under the implementation of salary reform according to Resolution 27:
Payroll 1:
The payroll applies to officials and public employees holding leadership positions (elected and appointed) in the political system from the central to communal levels based on the following principles:
- The salary level must reflect the hierarchy within the political system. Those holding leadership positions will receive salaries corresponding to their positions. If a person holds multiple positions, they will receive the highest salary level. If two leadership positions are equivalent, they will receive the same salary level. The salary level of higher-ranking leaders must be higher than that of lower-ranking leaders.
- Each type of position will have a designated salary level. There will be no classification based on ministries, sectors, departments, committees, or equivalent units at the central level when constructing the central-level position payroll. There will be no differentiation in salary levels for the same leadership position based on administrative units at the local level, which will be implemented through allowances.
- The classification of equivalent leadership positions within the political system for the design of position payrolls will be decided by the Politburo after reporting to the Central Executive Committee.
Payroll 2:
The payroll applies to officials and public employees without leadership positions based on their official ranks and professional titles. Each official rank and professional title will have multiple pay steps based on the following principles:
- For similar levels of job complexity, the salary level will be the same.
- Labor conditions that are higher than normal and profession-related benefits will be implemented through professional allowances.
- The organization and restructuring of official ranks and professional titles will encourage officials and public employees to improve their professional qualifications.
- Appointments to official ranks or professional titles must be associated with job positions and the structure of official ranks and professional titles will be implemented by the management agencies and organizations in charge of officials and public employees.
In addition, pursuant to the guidance of Resolution 27-NQ/TW in 2018, the salary structure for public employees will undergo major changes during the salary reform, including:
- Annulment of the current statutory pay rate and salary coefficient, and the establishment of a specific base pay amount in the new payrolls.
- The new salary structure will consist of the base pay (accounting for about 70% of the total salary fund) and various allowances (accounting for about 30% of the total salary fund). Bonuses will be included as additional payments (the bonus fund is about 10% of the total salary fund, excluding allowances).
Therefore, the main salary structure will consist of two main components: the base pay, accounting for 70% of the total salary fund, and allowances, accounting for 30% of the total salary fund. In addition, there will be a bonus component. As a result, public employees can receive the following actual salary:
Actual salary for public employees = Base pay + Allowances (if applicable) + Bonuses (if applicable) |
What are the payrolls for public employees after the salary reform in Vietnam from July 1, 2024?
How much will the salary of public employees increase specifically after salary reform in Vietnam in 2024?
According to the Government Electronic Portal, Minister of the Ministry of Internal Affairs stated that under the salary reform plan, starting from July 1, it is estimated that the average salary of officials and public employees will increase by about 30% (including both basic salary and allowances).
Another notable point is that from 2025, the Government will continue to adjust the salary levels in the payrolls to increase by an average of 7% per year. This means that after implementing the salary reform with new payrolls and higher salaries compared to the current ones, officials and public employees will still receive an additional 7% salary increase annually.
Therefore, under the salary reform in 2024, the average salary of public employees is expected to increase by about 30% (including both basic salary and allowances). From 2025 onwards, the Government will continue to adjust the salary levels in the payrolls to increase by an average of 7% per year. This means that after implementing the salary reform with new payrolls and higher salaries compared to the current ones, public employees will still receive an additional 7% salary increase annually.
Who are public employees in Vietnam?
Pursuant to the provisions of Article 2 of the Law on Public Employees 2010, public employees are Vietnamese citizens recruited according to working positions, working in public non-business units under working contracts and salaried from salary funds of public non-business units in accordance with law.
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