Social Insurance Allowance Levels for Military and Police to Change from July 01, 2024 with Wage Reform Implementation
Which social insurance allowances will change for the military and police from July 1, 2024?
From July 1, 2024, the statutory pay rate and the current salary coefficient will be abolished, and a new basic salary will be established with specific amounts in the new salary table.
Accordingly, post-wage reform will build and promulgate a new salary table system based on job positions, titles, and leadership positions for officials and public employees to replace the current salary table system. Transition from the old salary to the new salary ensures that it is not lower than the current wage.
Currently, several allowances tied to the statutory pay rate include:
- Health restoration allowance after illness.- One-time allowance for childbirth or adoption.- Health restoration allowance after maternity; funeral allowance.- Monthly survivorship allowance.
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To ensure the uniform implementation of the laws after the wage reform, Section 6 Part III of Resolution 27/NQ-TW 2018 has outlined a mission to amend and improve social insurance legislation and related laws concerning wage policies in the public sector.
Thus, based on the above contents, social insurance allowances tied to the statutory pay rate might be amended to fit the changes after July 1, 2024, when the salary table changes.
In Submission 527/TTr-CP of the Government of Vietnam concerning the Social Insurance Law (amended) on October 10, 2023, the Government of Vietnam proposes amending the allowances tied to the statutory pay rate by specifying amounts (in absolute terms as per current regulations), simultaneously stipulating these amounts be adjusted when the Government of Vietnam adjusts pensions and social insurance allowances.
When implementing the 2024 wage reform, the allowances tied to the statutory pay rate might change.
Which social insurance allowances will change for the military and police from July 1, 2024, when implementing wage reform? (Image from the internet)
Which 3 salary tables for the military and police officially apply from July 1, 2024?
On November 10, the National Assembly passed the Resolution on the state budget estimate for 2024. Notably, the Resolution dedicates Article 3 to implementing wage policy.
To be specific, the Resolution clearly states that from July 1, 2024, a comprehensive wage policy reform will be enacted as per Resolution 27-NQ/TW 2018 of the Seventh Conference of the 12th Central Committee.
The financial resources for wage reform will be ensured from the accumulated central budget for wage reform, local budgets, and a portion arranged in the balanced state budget expenditure estimates.
Simultaneously, pensions, social insurance benefits, monthly allowances, preferential allowances for merits, and some social security policies tied to the statutory pay rate will be adjusted.
From July 1, 2024, the salary tables for the military and police will be structured as follows:
- Abolish the statutory pay rate and the current salary coefficient, establish a new basic salary with specific amounts in the new salary tables.- Expand the salary relations base to determine specific salary amounts within the salary system, gradually approaching the wage relations of the enterprise sector appropriate to the state’s resources.- Improve policies on regular wage increases and early wage increases for officials and public employees and the armed forces in accordance with the provisions of the new salary tables.
* The new salary structure for the military and police is designed as follows:
- Basic salary (approximately 70% of the total salary fund)- Allowances (approximately 30% of the total salary fund)- Additional bonuses (bonus fund approximately 10% of the total annual salary fund, excluding allowances)
Develop and issue a new system of 3 salary tables for the military and police based on job positions, titles, and leadership positions to replace the current salary table system. Transition from the old salary to the new salary ensures it is not lower than the current salary. The new tables include:
- 1 salary table for army officers, police officers, and professional non-commissioned officers (by positions, titles, and military ranks)- 1 salary table for professional soldiers and technical police- 1 salary table for national defense workers and police workers (maintaining the wage correlation of the armed forces compared to administrative officials as currently)
Thus, from July 1, 2024, the new official salary tables for the military and police will be applied according to positions, titles, and military ranks for army officers, police officers, and professional non-commissioned officers.
Professional soldiers and specialized technical police will have their own salary table.
National defense workers and police workers will have their own salary table, maintaining the wage correlation with administrative officials as currently.
What is the wage reform roadmap under Resolution 27?
Based on Resolution 27-NQ/TW 2018, the wage reform roadmap is set as follows:
From 2021 to 2025 and with a vision to 2030
For the public sector
- From 2021, implement a new unified wage policy for officials and public employees and the armed forces across the entire political system.- In 2021, the lowest wage for officials and public employees will be equal to the average lowest wage in various regions of the enterprise sector.- Periodically raise wages in line with the consumer price index, economic growth rate, and the state budget's capacity.- By 2025, the lowest wage for officials and public employees will be higher than the average lowest wage in various regions of the enterprise sector.- By 2030, the lowest wage for officials and public employees will be either equal to or higher than the lowest wage in the highest region of the enterprise sector.
For the enterprise sector
- From 2021, the state will periodically adjust the regional minimum wage based on the recommendations of the National Wage Council. Enterprises will implement wage policies based on negotiation and agreement between employers and employees and their collective representatives; the state will not directly interfere with enterprise wage policies.- Manage labor and wages in state-owned enterprises via wage cost contracts tied to business production targets until 2025, progressing towards contracting business production targets by 2030.
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