Confirmed Minimum Wage for Officials and Public Employees from July 01, 2024, under the 2024 Salary Reform: Has it been finalized?
Officially Finalized the Minimum Wage for Officials and Public Employees Starting July 1, 2024, with 2024 Wage Reform Implementation Yet?
On the morning of December 20, the National Wage Council held its second session of 2023 to discuss and negotiate the plan for adjusting regional minimum wages for 2024.
Concluding the session, after listening to the opinions of involved parties, Mr. Le Van Thanh, Deputy Minister of Labor, War Invalids and Social Affairs, Chairman of the National Wage Council, stated that all members present at the session voted to finalize a regional minimum wage increase of 6% for 2024, effective from July 1, 2024.
With a 6% increase in regional minimum wages, the projected wages in the enterprise sector are divided into four regions as follows:
| Region | Monthly Minimum Wage
(Unit: VND/month) | Hourly Minimum Wage
(Unit: VND/hour) || --- | --- | --- || Region I | 4,960,000 (increased by 280,000) | 23,800 || Region II | 4,410,000 (increased by 250,000) | 21,000 || Region III | 3,860,000 (increased by 220,000) | 18,600 || Region IV | 3,450,000 (increased by 200,000) | 16,600 |
Accordingly, the average lowest wage in the enterprise sector, after a 6% regional minimum wage increase, will be around 4.1 million VND.
On November 10, the National Assembly also passed a resolution on the state budget estimate for 2024.
The resolution states that from July 1, 2024, a comprehensive reform of wage policies will be implemented according to Resolution 27-NQ/TW of 2018 from the Seventh Central Committee Meeting of the XII Central Executive Committee.
According to Resolution 27-NQ/TW of 2018, the objectives for officials and public employees when implementing the 2024 wage reform are as follows:
Specific Objectives
...
(2) From 2021 to 2025 and the vision towards 2030
a) For the public sector
- From 2021, apply a new unified wage policy for officials and public employees, and armed forces across the entire political system.
- By 2021, the lowest wage for officials and public employees will equal the average lowest regional wage in the enterprise sector.
- Regularly adjust wages in line with the consumer price index, economic growth, and state budget capacity.
- By 2025, the lowest wage for officials and public employees will be higher than the average lowest regional wage in the enterprise sector.
- By 2030, the lowest wage for officials and public employees will be equal to or higher than the lowest wage in the highest-wage region of the enterprise sector.
When the 2024 wage reform is implemented, the lowest wage for officials and public employees will be equal to the average lowest regional wage in the enterprise sector, projected to be around 4.1 million VND.
This projection is based on the timeline from 2021 (the initial point if the wage reform was implemented as scheduled).
By 2025, the lowest wage for officials and public employees will be higher than the average lowest regional wage in the enterprise sector (projected to exceed 4.1 million VND).
By 2030, the lowest wage for officials and public employees will be equal to or higher than the lowest wage in the highest-wage region of the enterprise sector (projected to be around 4,960,000 or higher).
However, the aforementioned minimum wage for officials and public employees from July 1, 2024, is for reference. Currently, an official document from the authoritative agency is still awaited.
Has the minimum wage for officials and public employees starting July 1, 2024, been officially finalized with the 2024 wage reform implementation yet?
How Will the New Salary Scales for Officials and Public Employees from July 1, 2024, Be Defined?
Starting from July 1, 2024, the new salary scales for officials and public employees based on job positions with the 2024 wage reform will include:
| Salary Scale 01: The salary scale for positions applicable to officials and public employees holding leadership positions (elected and appointed) within the political system from central to commune levels.
Salary Scale 02: The professional salary scale according to official grades and public employee professional titles, applicable to officials and public employees not holding leadership titles. || --- |
The new salary from July 1, 2024, will be calculated based on the following salary structure:
| Salary for officials and public employees, LLVT = Basic Salary + Allowance (if any) + Bonus (if any) || --- |
In detail:
- Basic salary (approximately 70% of the total salary fund)
- Allowances (approximately 30% of the total salary fund)
- Supplementary bonuses (the bonus fund is about 10% of the total annual salary fund, excluding allowances).
The new salary in the public sector, post-wage reform, will be implemented according to the aforementioned salary structure.
Eight Types of Allowances for Officials and Public Employees from July 1, 2024
Starting from July 1, 2024, officials and public employees will benefit from eight types of allowances, including:
(1) Concurrent position allowance;
(2) Additional seniority allowance;
(3) Regional allowance;
(4) Professional allowance;
(5) Mobility allowance;
(6) Allowance for working in particularly difficult areas;
(7) Allowance based on administrative unit classification and public service provider ranking;
(8) Job responsibility allowance.
These eight types of allowances will be applied to officials and public employees with the wage reform from July 1, 2024.
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