From July 1, 2024: Will the salary increase by more than 7.5 million VND for officials and public employees after the salary reform in Vietnam?
- From July 1, 2024: Will the salary increase by more than 7.5 million VND for officials and public employees after the salary reform in Vietnam?
- What are 02 new payrolls for officials and public employees after the salary reform in Vietnam in 2024?
- Which allowances will officials and public employees receive after the salary reform in Vietnam from July 1, 2024?
From July 1, 2024: Will the salary increase by more than 7.5 million VND for officials and public employees after the salary reform in Vietnam?
On November 10, 2023, the National Assembly passed Resolution 104/2023/QH15 on the state budget estimate for 2024. Thus, comprehensive salary policy reforms will be implemented from July 1, 2024, following Resolution 27-NQ/TW 2018.
In line with the implementation of Resolution 27-NQ/TW 2018, the Minister of Home Affairs highlighted the notable points of the new salary policy, which include determining the minimum wage level in the public sector based on the average minimum wage level in the business sector.
Currently, the minimum wage in the business sector is divided into 4 regions: Region 1 is 4.68 million VND/month, Region 2 is 4.16 million VND/month, Region 3 is 3.64 million VND/month, and Region 4 is 3.25 million VND/month. Therefore, the current average minimum wage level in the business sector is over 3.9 million VND.
For details on the current payrolls applicable to officials and public employees: here
It is expected that by the end of this year, the Ministry of Labor - Invalids and Social Affairs will propose a plan to increase the region-based minimum wage. During the recent sessions in the National Assembly, many deputies suggested increasing the region-based minimum wage simultaneously with the implementation of the salary reform from July 1, 2024.
Therefore, if the region-based minimum wage increases, the average minimum wage level in the business sector will also increase above the current 3.9 million VND.
Moreover, the new salary policy also expands the salary ratio range from 1 - 2.34 - 10 to 1 - 2.68 - 12.
Therefore, the minimum salary for officials and public employees will increase significantly compared to the current starting salary of 3.5 million VND for officials and public employees with intermediate level qualifications and a salary coefficient of 1.86.
The average salary for officials and public employees will also have an increased starting point, from a coefficient of 2.34 to 2.68. Currently, officials and public employees with university degrees have a starting salary of over 4.2 million VND/month.
In addition to the base pay, the new salary regime also rearranges various allowances, which can account for a maximum of 30% of the total salary fund (with some cases exceeding or below 30%), and 10% for bonuses.
Therefore, if we consider both the base pay, allowances, and bonuses, the average salary for officials and public employees after the salary reform will increase by more than 32% compared to the average income of wage-earning workers (7.5 million VND/month).
Note: The increase of more than 32% in average salary is calculated based on the current average income of wage-earning workers (7.5 million VND/month). This income level is not fixed and may change in the future.
Source: Government Electronic Information Portal.
From July 1, 2024: Will the salary increase by more than 7.5 million VND for officials and public employees after the salary reform in Vietnam?
What are 02 new payrolls for officials and public employees after the salary reform in Vietnam in 2024?
Pursuant to subsection 3.1, Section 3 of Resolution 27-NQ/TW 2018, it is clearly stated that the payrolls for officials and public employees after the salary reform in 2024 is as follows:
- 1 payroll for officials and public employees holding leadership positions (elected and appointed) within the political system from the central level to the commune level.
- 1 payroll for professional and technical positions according to the officials' ranks and public employees' professional titles, applicable to officials and public employees who do not hold leadership positions.
In addition, the payrolls applicable to officials are formulated according to the following principles during the salary reform:
- 1 payroll for officials and public employees holding leadership positions (elected and appointed) within the political system from the central level to the commune level:
+ The salary level for leadership positions should reflect the hierarchy within the political system. Those who hold leadership positions will receive salaries based on their respective positions. If an individual holds multiple leadership positions, they will receive the highest salary level among those positions. If two individuals hold equivalent leadership positions, they will receive the same salary level. The salary level for higher-level leaders should be higher than that of lower-level leaders.
+ There will be a specified salary level for each type of leadership position, without differentiating between ministries, sectors, departments, committees, and equivalent units at the central level when designing the leadership position payroll at the central level. Different salary levels for the same leadership position based on the classification of local administrative units will be implemented through allowances. The classification of equivalent leadership positions within the political system for designing the leadership position payroll will be determined by the Politburo, after reporting to the Central Executive Committee.
- 1 payroll for professional and technical positions according to the career group of officials and professional job titles of public employees, applicable to officials and public employees who do not hold leadership positions
+ Officials and public employees with the same level of job complexity will receive the same salary level. If the work conditions are more demanding or the occupation is incentivized, additional allowances will be provided through the occupation-based allowance. The ranks and number of salary grades within the ranks of officials and professional titles of public employees will be rearranged. Officials and public employees are encouraged to improve their professional and technical qualifications.
+ Appointments to ranks of officials or professional titles of public employees must be aligned with the job position and the organizational structure of officials and public employees managed by the relevant authorities.
Therefore, the new payrolls for officials and public employees from July 1, 2024, under the salary reform will be divided into two categories as specified above.
Which allowances will officials and public employees receive after the salary reform in Vietnam from July 1, 2024?
Pursuant to Resolution 27-NQ/TW 2018, when implementing the salary reform, there will be 8 types of allowances under the new salary regime applicable to officials and public employees, including the following:
- Multi-positions allowance
- Extra-seniority allowance.
- Region-based allowance.
- Responsibility allowance.
- Mobility allowance.
- Occupation-based allowance.
- Allowance for working in extremely difficult areas.
- Allowance based on the classification of public service providers.
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