From July 01, 2024, will the salary of official public employees not exceed 21 million VND when the 2024 salary reform is implemented?
From July 1, 2024, will the salary of official public employees not exceed 21 million when implementing the 2024 salary reform?
On November 10, 2023, the National Assembly passed Resolution 104/2023/QH15 on the state budget estimate for 2024. From July 1, 2024, a comprehensive reform of the salary policy will be implemented according to Resolution 27-NQ/TW 2018.
A notable point of the new salary policy is the regulation that the lowest salary in the public sector will be equal to the average minimum wage in the enterprise sector. Additionally, the new salary policy also expands the salary scale from the current 1 - 2.34 - 10 to 1 - 2.68 - 12.
Thus, the average salary of officials and public employees with a university degree will also see a starting increase from a coefficient of 2.34 to 2.68. Currently, officials and public employees with a university degree have a starting salary of more than 4.2 million VND/month, and if the coefficient is increased to 2.68, the salary of newly graduated officials will rise to over 4.8 million VND/month.
The highest salary of officials and public employees corresponding to grade 3 of senior experts (equivalent to a minister's salary) will also be extended from a coefficient of 10 to 12. Therefore, it is expected that the highest salary of officials and public employees will significantly exceed the current figure of 18 million VND.
If the salary scale is expanded from 10 to 12, it is expected that the salary of senior experts will increase from 18 million VND/month to over 21 million VND/month (if calculated according to the current statutory pay rate of 1.8 million VND/month).
In addition to this basic salary, the new salary policies also reorganize various allowances, accounting for a maximum of 30% of the total salary fund and 10% of bonuses.
According to Resolution 27-NQ/TW 2018, the expansion of the salary scale serves as a basis for determining specific salary levels in the new salary table system. The increase in salary to over 21 million VND/month is only an anticipated rise if calculated according to the current statutory pay rate of 1.8 million VND/month. However, from July 1, 2024, the statutory pay rate and current salary coefficients will be abolished, establishing a basic salary in specific monetary terms in the new salary table.
Therefore, in practice, from July 1, 2024, an official public employee's salary may not increase by more than 21 million VND/month.
From July 1, 2024, will the salary of official public employees not exceed 21 million when implementing the 2024 salary reform?
2. What is the new salary table for official public employees when implementing the 2024 salary reform?
At subsection 3.1, Section 3 of Resolution 27-NQ/TW 2018, the new salary table for officials and public employees when implementing the 2024 salary reform is clearly stated as follows:
- One salary table for positions applied to officials and public employees holding leadership positions (elected and appointed) in the political system from the central to commune levels.
- One salary table for professional and operational grades according to the official rank and public employee professional titles, applied commonly to officials and public employees not holding leadership titles.
Additionally, the salary table for officials, when implementing the salary reform, is constructed according to the following principles:
- One position salary table applied to officials and public employees holding leadership positions (elected and appointed) in the political system from the central to commune levels:
+ The position salary must reflect the hierarchy in the political system; those holding leadership positions will receive a salary according to that position. If a person holds multiple positions, they will receive the highest position salary. Equivalent leadership positions will receive the same position salary, and the position salary of senior leaders must be higher than that of subordinate leaders.
+ One position salary is stipulated for each type of equivalent position; the differentiation of ministries and central authorities, commissions, committees, and equivalents at the central level is not made when constructing the central position salary table. The differentiation of different position salaries according to leadership titles of administrative units at the local level is not made but carried out through allowance policies. The classification of equivalent leadership positions in the political system to design the position salary table is decided by the Politburo after reporting to the Central Executive Committee.
- One professional and operational salary table according to the official rank and public employee professional titles, applied commonly to officials and public employees not holding leadership titles:
+ The same level of job complexity will receive the same salary; higher than usual working conditions and professional incentives will be implemented through allowance policies; regrouping of ranks and the number of steps in the official ranks, public employee professional titles, encouraging officials and public employees to enhance their professional knowledge and skills.
+ Appointments to official ranks or public employee professional titles must be linked to job positions and the structure of official ranks, public employee professional titles, managed by the organization or unit managing officials and public employees.
The salary table for officials and public employees from July 1, 2024, when implementing the salary reform will be divided into two tables as stipulated above.
What allowances will officials and public employees receive when implementing salary reform from July 1, 2024?
According to Resolution 27-NQ/TW 2018, when implementing the salary reform, eight types of allowances will apply to officials and public employees under the new salary policies, including:
- Concurrent position allowance;- Seniority allowance beyond the framework;- Regional allowance;- Job responsibility allowance;- Mobility allowance;- Professional allowance;- Allowance for working in particularly difficult areas;- Allowance by classification of administrative units.
In addition, Resolution 27-NQ/TW 2018 clearly states as follows:
a) Design a new salary structure including: Basic salary (accounting for about 70% of the total salary fund) and allowances (accounting for about 30% of the total salary fund). Adding bonuses (the bonus fund is about 10% of the total annual salary fund, excluding allowances).
These allowances will account for about 30% of the total salary fund.
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