How will the calculation of officials' salaries change before and after the salary reform from July 1, 2024?
How to Calculate Salaries for Officials and Public Employees Before and After Implementing Wage Reform from July 1, 2024?
On the morning of November 10, 2023, the National Assembly voted to pass the Resolution on the state budget estimate for 2024, which includes implementing the wage policy from July 1, 2024.
Accordingly, the salaries for officials and public employees in 2024 are applied in two time frames:
Firstly, the first half of 2024:
- From January 1, 2024, to the end of June 30, 2024, the statutory pay rate continues to be applied at the rate of 1,800,000 dong and salaries are calculated by the coefficient and statutory pay rate.
Secondly, the second half of 2024 onwards:
- From July 1, 2024, the statutory pay rate is abolished and replaced by new wage policies according to Resolution 27/NQ-TW in 2018.
The method of calculating salaries for officials and public employees in 2024 is as follows:
(1) How to Calculate Salaries for Officials and Public Employees 2024 Before Wage Reform:
The salary for officials and public employees is calculated using the formula:
Salary = Basic Salary x Salary Coefficient
Example: A civil servant of type A1 has a starting salary coefficient of 2.34, corresponding to a salary of 4,212,000 dong/month.
(2) How to Calculate Salaries for Officials and Public Employees After Wage Reform:
According to Resolution 27/NQ-TW in 2018, when implementing wage reform, a new salary structure is designed for officials and public employees, including:
Salary for Officials and Public Employees = Basic Salary + Allowances
Additionally, bonuses accounting for about 10% of the salary fund for the year, excluding allowances, are added.
How does the method of calculating salaries for officials change before and after wage reform from July 1, 2024?
What Are the Factors for Constructing the New Salary Table for Officials According to Resolution 27?
According to Resolution 27/NQ-TW in 2018, the factors for constructing the new salary table for officials are as follows:
- Abolish the statutory pay rate and current salary coefficients, and construct a basic salary level expressed in specific amounts in the new salary table.
- Do not apply the official salary table to those performing support and service tasks (requiring training below the intermediate level).
- Determine the minimum salary for officials in the public sector as the salary for those performing tasks requiring intermediate training (level 1) not lower than the minimum salary for trained labor in the enterprise sector.
- Expand the salary relationship basis to determine specific salary levels in the salary system, gradually approaching the salary relationship in the enterprise sector appropriate to state resources.
- Improve policies for regular salary increases and pre-emptive salary advancements for officials in line with the new salary table regulations.
How Is the New Salary Table Built After Wage Reform According to Resolution 27?
Based on Resolution 27/NQ-TW in 2018, the new salary table for officials and public employees, and the armed forces after wage reform is built based on the following regulations:
(1) Principles for Constructing the New Salary Table in 2024 When Implementing Wage Reform
Build and issue a new salary system based on job positions, titles, and leadership roles, replacing the current salary system, transitioning old salaries to new salaries, ensuring no lower salaries than currently received, including:
- Construct 1 salary table for leadership positions applicable to officials and public employees holding leadership roles (elected and appointed) in the political system from the Central to the communal level based on the principle:
+ Leadership salary must reflect the hierarchy within the political system; holding a leadership role enjoys the salary of that role, if one person holds multiple roles, they enjoy the highest leadership salary; equivalent leadership roles enjoy the same salary; the higher leadership level's salary must be higher than that of the lower level;
+ Specify one leadership salary for each equivalent leadership role; do not differentiate ministries and central authorities, committees, and equivalents at the Central level when constructing the Central leadership salary table; do not differentiate different leadership salary levels for the same leadership title based on administrative unit categories locally, apply using allowance policies. The categorization of equivalent leadership roles in the political system for designing the leadership salary table is decided by the Politburo after reporting to the Central Committee.
- Construct 1 professional and occupational salary table based on the grades of officials and the titles of public employees, applicable to officials and public employees not holding leadership titles; each grade of official, and title of public employee has multiple salary levels based on the principle:
+ The same complexity of work equates to the same salary; higher-than-normal working conditions and job perks are implemented using professional allowance policies; reorganize the group of grades and the number of levels within the grade of officials and the titles of public employees, encouraging officials and public employees to improve their professional and occupational qualifications;
+ Appointments to the grade of officials or titles of public employees must be linked to job positions and the structure of the grade of officials and titles of public employees managed by agencies, organizations, and units managing officials and public employees.
- Construct 3 salary tables for the armed forces, including:
+ 1 salary table for military officers, police officers, and non-commissioned career officers (based on role, title, and rank or police ranks);
+ 1 salary table for professional soldiers, and technical specialists in the police;
+ And 1 salary table for national defense workers, and police workers (while maintaining the salary relationship of the armed forces relative to administrative officials as it currently exists).
(2) Designing a New Salary Structure
Design a new salary structure comprising: Basic Salary (approximately 70% of the total wage fund) and allowances (approximately 30% of the total wage fund). Include bonuses (bonus fund accounting for about 10% of the total annual wage fund, excluding allowances).
(3) Abolish Salary Calculation Based on Coefficients and the Statutory Pay Rate
Abolish the statutory pay rate and current salary coefficients, and construct a basic salary level expressed in specific amounts in the new salary table.
(4) Expected Salary Increase by 7%
According to the report by the Government of Vietnam, presented by Prime Minister Pham Minh Chinh at the opening session of the 6th Session of the 15th National Assembly on October 23, 2023, the wage policy in the public sector according to Resolution 27 of the Central Committee will be reformed from July 1, 2024, specifically:
- From 2025 onwards, continue to adjust salaries with an average increase of 7% per year for officials and public employees, and armed forces, until the minimum salary is equal to or higher than the minimum wage of region I of the enterprise sector.
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