The 2024 salary reform in Vietnam: What are the specific allowances accounting for about 30% of the total salary fund?
- The 2024 salary reform in Vietnam: What are the specific allowances accounting for about 30% of the total salary fund?
- What are 02 payrolls applicable to officials after the 2024 salary reform in Vietnam?
- What allowances will officials and public employees no longer receive after the 2024 salary reform in Vietnam from July 1, 2024?
The 2024 salary reform in Vietnam: What are the specific allowances accounting for about 30% of the total salary fund?
From July 1, 2024, the comprehensive salary policy reform will be implemented according to Resolution 27-NQ/TW in 2018.
Resolution 27-NQ/TW in 2018 identified the shortcomings of the current allowances, specifically:
I- SITUATION AND REASONS
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2. Alongside the achievements, the salary policy still has many limitations and shortcomings. The salary policy in the public sector is still complex, and the payroll system is not suitable for job positions, titles, and leadership positions. It is average-oriented, does not ensure livelihoods, does not fully utilize talents, and does not provide motivation to improve the quality and efficiency of labor. The base salary multiplied by the coefficient does not clearly reflect the real value of the salary. There are too many types of allowances and various income sources outside the salary due to different regulations by different agencies and levels, leading to inconsistencies and not reflecting the administrative hierarchy in public activities. It has not fully utilized the rights and responsibilities of leaders of agencies and units in evaluating and paying salaries, bonuses, linked to labor productivity, quality, and work efficiency of officials, public employees, and employees.
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Pursuant to Resolution 27-NQ/TW in 2018 guiding the new salary structure during the 2024 salary reform, the temporary calculation formula is as follows:
Net salary = Base pay + Allowances (if any) + Bonuses (if any)
Where:
Base pay accounts for about 70% of the total salary fund.
Allowances account for about 30% of the total salary fund.
Bonuses: The bonus fund is about 10% of the total salary fund for the year, excluding allowances.
When implementing the 2024 salary reform, Resolution 27-NQ/TW in 2018 has unified that the allowances will account for about 30% of the total salary fund and include the following specific allowances:
Multi-position allowance
Extra-seniority allowance
Region-based allowance
Responsibility allowance
Mobility allowance
Professional incentive allowance
Allowance for working in economically and socially difficult areas
Allowance based on the classification of administrative units and the ranking of public service providers
Specific allowances applicable to armed forces
The 2024 salary reform in Vietnam: What are the specific allowances accounting for about 30% of the total salary fund?
What are 02 payrolls applicable to officials after the 2024 salary reform in Vietnam?
Pursuant to Resolution 27-NQ/TW in 2018 by the Central Executive Committee regarding salary policy reform for officials, public employees, armed forces, and labor in enterprises, there are 02 payrolls applicable to officials under the 2024 salary reform:
Payroll 1
This payroll applies to officials and public employees holding leadership positions (elected or appointed) in the political system from central to grassroots levels, following the principles below:
+ The salary level must reflect the hierarchy within the political system. Those holding leadership positions will receive the corresponding salary for their position. If a person holds multiple positions, they will receive the highest salary level among those positions. If two leaders hold equivalent positions, they will receive the same salary level. The salary level of a higher-ranking leader must be higher than that of a lower-ranking leader.
+ A specific salary level is determined for each equivalent position. There is no classification based on ministries, sectors, departments, committees, or their equivalents at the central level when constructing the payroll for central positions. There is also no differentiation in salary level for the same leadership position based on the administrative unit classification at the local level. Instead, this is implemented through the allowance system.
+ The classification of equivalent leadership positions within the political system for designing the payroll is decided by the Politburo after reporting to the Central Executive Committee.
Payroll 2
This payroll applies to officials and public employees who do not hold leadership positions, based on their professional ranks and titles. Each officials' rank and public employees' professional title have multiple pay steps, following the principles below:
+ For the same level of job complexity, the salary level is the same. Higher labor conditions and professional incentives are implemented through professional allowances. The grouping and number of steps within officials' ranks and public employees' professional titles are rearranged, encouraging officials and public employees to improve their professional expertise.
+ Appointment to officials' ranks or public employees' professional titles must be associated with job positions and the structure of officials' ranks and public employees' professional titles is implemented by the managing agencies and organizations overseeing officials and public employees.
What allowances will officials and public employees no longer receive after the 2024 salary reform in Vietnam from July 1, 2024?
The content of the allowances is determined in Resolution 27-NQ/TW in 2018 as follows:
II- DIRECTIVES, OBJECTIVES, AND REFORM CONTENT
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3. Reform content
3.1. For officials, public employees, and armed forces (public sector)
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d) Rearrange the current allowance system, ensuring that the total allowance fund does not exceed 30% of the total salary fund.
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- Annul seniority allowances (except for the military, police, and cipher officers to maintain salary parity with officials); leadership position allowances (as the salary for leadership positions is determined based on the position itself); party and political-social organization work allowances; official duties allowances (as they have been incorporated into the base pay); hazardous and dangerous work allowances (as the allowances are now based on occupations with hazardous and dangerous work conditions).
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Therefore, when implementing the 2024 salary reform, officials and public employees will no longer receive the following allowances based on their job positions:
+ Seniority allowances
+ Leadership position allowances (as the salary for leadership positions is determined based on the position itself)
+ Party and political-social organization work allowances
+ Official duties allowances (as they have been incorporated into the base pay)
+ Hazardous and dangerous work allowances (as the allowances are now based on occupations with hazardous and dangerous work conditions).
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