Officially abolish the seniority allowance from July 01, 2024, for officials with the 2024 salary reform according to Resolution 27?
Abolition of the Longevity Allowance from July 1, 2024, for officials in the 2024 Salary Reform according to Resolution 27?
At the closing session of the Vietnam Socio-Economic Forum 2023 held in Hanoi on September 19, 2023, National Assembly Chairman Vuong Dinh Hue emphasized the need to promptly implement a comprehensive salary policy reform in 2024.
"This is a reform, not a regular salary increase. If there are no changes, we can start applying it from July 1, 2024."
In addition, localities also have excess funds allocated for salary reform, amounting to VND 208,457 billion. Thus, a surplus of VND 263,000 billion is available to implement the salary reform from 2024.
One of the notable points of the salary reform from July 1, 2024, is the abolition of the longevity allowance for officials. As outlined in Resolution 27-NQ/TW of 2018, the current allowance policies will be streamlined to ensure that the total allowance fund does not exceed 30% of the total salary fund, as follows:
- Continue to apply concurrent duties allowance; seniority allowance beyond the salary scale; regional allowance; job responsibility allowance; mobility allowance; service allowance for security, defense, and special allowances for armed forces (military, police, cryptographic).
- Merge professional preferential allowances, professional responsibility allowances, and harmful, hazardous allowances (collectively called professional allowances) applied to officials and public employees in professions and jobs with working conditions higher than normal and with appropriate preferential policies from the State (education and training, healthcare, courts, procurators, civil enforcement, inspection, auditing, customs, forest rangers, market management, etc.). Merge special allowances, attraction allowances, and long-term work allowances in areas with particularly difficult socio-economic conditions into working allowances in particularly difficult areas.
- Abolish the longevity allowance (except for the military, police, cryptographic to ensure salary parity with officials); leadership position allowances (as leadership positions in the political system will use position-based salary scales); party, social-political group allowances; public service allowances (as they have been included in the basic salary); hazardous, dangerous allowances (as hazardous working conditions have been incorporated into professional allowances).
- Implement new allowance policies based on administrative unit classification for the commune, district, and provincial levels.
- Consistently apply a monthly allowance fund for non-specialized personnel at the commune level, in villages, and residential groups, based on the recurrent spending ratio of the commune-level People's Committee; at the same time, specify the maximum number of non-specialized personnel according to each type of commune, village, and residential group. On this basis, the commune-level People's Committee will propose to the same-level People's Council specific titles eligible for allowances, allowing one title to handle many tasks while ensuring the quality and effectiveness of assigned tasks.
The longevity allowance for officials may be abolished when implementing salary reform from July 1, 2024 (except for the military, police, cryptographic to ensure salary parity).
Official abolition of longevity allowance from July 1, 2024, for officials in the 2024 salary reform according to Resolution 27?
What is the specific roadmap for salary reform from 2021 to 2025 with a vision to 2030?
In Resolution 27-NQ/TW of 2018, specific goals for salary reform from 2021 to 2025 and vision to 2030 are proposed as follows:
* For the public sector
- From 2021, new uniform salary policies will be applied to officials and public employees, armed forces across the entire political system.
- In 2021, the minimum salary of officials and public employees will be equal to the average minimum salary of the enterprise sector.
- Periodically adjust the salary level in line with the consumer price index, economic growth rate, and the state's budget capacity.
- By 2025, the minimum salary of officials and public employees will be higher than the average minimum salary of the enterprise sector.
- By 2030, the minimum salary of officials and public employees will be equal to or higher than the minimum salary of the highest region in 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 salary policies based on negotiation and agreement between employers and employees and the representative collective of employees; the State will not directly intervene in enterprise salary policies.
- Manage labor and salary in state-owned enterprises by tying salary expenses to business production tasks until 2025 and then moving towards entrusting state-owned enterprises with business production tasks by 2030.
How is the current longevity allowance regulated?
Clause 8(a) Article 6 of Decree 204/2004/ND-CP amended by Clause 2 Article 1 Decree 76/2009/ND-CP regulates as follows:
Salary allowance policies
...
8. Specific professional or job allowances:
a) Longevity allowance:
Applicable to officers and professional servicemen of the people's army, officers and salaried police sergeants of the people's police, cryptographic personnel in cryptographic organizations, and officials ranked according to specific professional branches: customs, courts, prosecutors, auditing, inspection, civil enforcement, forest rangers.
The allowance rate is as follows: after 5 years (60 months) of continuous service or work in the cryptographic, customs, courts, prosecutors, auditing, inspection, civil enforcement, forest ranger sectors, officials will receive a longevity allowance equivalent to 5% of the current salary plus leadership position allowance and seniority allowance beyond the salary scale (if any); from the sixth year onwards, an additional 1% each year.
According to the above regulation, after 5 years of continuous service, the longevity allowance will be 5% of the current salary plus leadership position allowance and seniority allowance beyond the salary scale (if any); from the sixth year onwards, an additional 1% each year.
Article 3 of Decree 24/2023/ND-CP regulates the calculation of the longevity allowance as follows:
Statutory pay rate
1. The statutory pay rate is used as a basis for:
a) Calculating salary levels in salary tables, allowance levels, and implementing other policies according to the law for the objects regulated in Article 2 of this Decree;
b) Calculating activity fees, subsistence allowances according to the law;
c) Calculating contributions and benefits according to the statutory pay rate.
2. From July 1, 2023, the statutory pay rate is VND 1,800,000/month.
3. Continue to implement specific financial mechanisms and incomes for agencies and units currently applying specific financial mechanisms and incomes at the central level as regulated by competent authorities for certain administrative state agencies until a comprehensive salary policy reform is implemented following Resolution No. 27-NQ/TW dated May 21, 2018, of the Seventh Conference of the 12th Central Executive Committee; the monthly salary and additional income calculated according to the statutory pay rate of VND 1,800,000/month from July 1, 2023, following the specific mechanism ensures no excess salary and additional income compared to the average salary and additional income in 2022 (excluding salary and additional income adjustments due to the increase in salary coefficient according to the rank and grade in case of rank promotion).
4. the Government of Vietnam will submit to the National Assembly for consideration to adjust the statutory pay rate in line with state budget capacity, consumer price index, and the country’s economic growth rate.
The current method for calculating the longevity allowance is as follows:
The longevity allowance coefficient x [salary coefficient x VND 1,800,000 + leadership position allowance (if any) + seniority allowance beyond the salary scale (if any)]
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