From July, 2024: Which group of officials and public employees will have their pension increased by 15% after salary reform in Vietnam in 2024?
- From July, 2024: Which group of officials and public employees will have their pension increased by 15% after salary reform in Vietnam in 2024?
- How to calculate monthly pension of voluntary social insurance participants in Vietnam in 2024?
- What are 02 new payrolls applicable to officials under the salary reform policy in Vietnam?
From July, 2024: Which group of officials and public employees will have their pension increased by 15% after salary reform in Vietnam in 2024?
On November 10th, 2023, the National Assembly passed Resolution 104/2023/QH15 on the state budget estimate for 2024.
regarding the implementation of salary policies, the National Assembly resolved that starting from July 1st, 2024, comprehensive salary policy reforms will be implemented according to Resolution 27-NQ/TW in 2018 of the 7th Central Executive Committee of the 12th term; adjusting pensions, social insurance allowances, monthly allowances, preferential allowances for people with meritorious services, and some social security policies associated with the statutory pay rate.
Speaking at a New Year meeting on the first working day of the Ministry of Labor, Invalids and Social Affairs after the Lunar New Year holiday, held on the morning of February 15th, Minister Dao Ngoc Dung stated that in 2024, comprehensive salary policy reforms will be implemented in accordance with Resolution 27-NQ/TW. Salary reform must go hand in hand with adjusting pension policies with the spirit of "not letting retirees face more difficulties and disadvantages during the reform process."
When implementing salary reform, if the general salary level for employees nationwide increases but pension is not well adjusted, pension recipients will be at a disadvantage.
Therefore, a balanced and harmonious calculation is needed. If the salary of officials and public employees increases by 23.5%, then at least the pension should increase by 15%.
However, pension will not be increased for 36 units of certain sectors that are no longer entitled to special salary policies. If parallel payrolls are constructed, some agencies may have their salaries reduced by 50%.
According to the spirit of Resolution 27-NQ/TW in 2018, agencies with specific payrolls will be retained (not increased) to strive for fairness among salary recipients.
Therefore, starting from July 1, 2024, when implementing salary reform, the majority of officials and public employees currently receiving salaries from the state budget may be eligible for a 15% increase in pension, except for officials and public employees belonging to the 36 units that are applying special financial and income mechanisms and may not have their pensions increased.
From July, 2024: Which group of officials and public employees will have their pension increased by 15% after salary reform in Vietnam in 2024?
How to calculate monthly pension of voluntary social insurance participants in Vietnam in 2024?
The levels of monthly pension of voluntary social insurance participants in 2024 are determined according to Clause 2, Article 74 of the Law on Social Insurance 2014. Specifically:
- For male employees:
The 2024 pension calculation is as follows:
Pension level = (45% + Additional pension rate) x Average monthly income on which social insurance premium are based
In particular, the additional pension rate is calculated as follows: Take 20 years of voluntary social insurance payment as the standard. It shall be added with 2% for every additional year, but must not exceed 75%.
- For female employees:
Pursuant to Point b, Clause 2, Article 74 of the Law on Social Insurance 2014, female employees who have paid voluntary social insurance for 15 years will have a pension entitlement rate of 45%.
Comparing with the condition of qualifying for pension, which requires a minimum of 20 years of social insurance contributions, when calculating the pension, the pension rate for women is increased by 2% for each year (5 years), totaling 10% -> The pension rate for women is 45% + 10% = 55%.
The calculation of pension in 2024 is as follows:
Pension level = (55% + Additional pension rate) x Average monthly income on which social insurance premium are based
The additional pension rate is calculated as follows. Taking 20 years of voluntary social insurance contributions as the standard, an additional 2% is added for each year, up to a maximum of 75%.
What are 02 new payrolls applicable to officials under the salary reform policy in Vietnam?
Pursuant to Resolution 27-NQ/TW in 2018, it was agreed that when implementing the 2024 salary reform, new payrolls would be established and issued based on job positions and leadership positions, replacing the current payroll system. The conversion from old salaries to new salaries must ensure that the new salary is not lower than the current one. Therefore, the two new payrolls that apply to officials during the 2024 salary reform are as follows:
Payroll 1:
The payroll applies to officials and public employees holding leadership positions (elected and appointed) in the political system from the central to communal level, following the principles:
- The salary level must reflect the hierarchy in the political system. Those holding leadership positions will receive salaries based on their positions. If a person holds multiple positions, they will receive the highest salary for that position. If two leaders hold equivalent positions, they will receive the same salary. The salary of a higher-level leader must be higher than that of a lower-level leader.
- There will be a designated salary level for each type of equivalent position. When designing the payroll for central-level positions, there will be no classification based on ministries, sectors, departments, committees, and equivalents. Different salary levels for the same leadership position based on administrative unit classification at the local level will be implemented through allowances.
- The classification of equivalent leadership positions in the political system for the design of the payroll will be decided by the Politburo after reporting to the Central Executive Committee..
Payroll 2
The payroll applies to officials and public employees without holding leadership positions and is based on officials' ranks and public employees' professional titles. Each officials' rank and public employees' professional title will have multiple pay steps based on the following principles:
+ For jobs with the same level of complexity, the salary will be the same. Higher labor conditions and occupational benefits will be implemented through additional allowances. The classification of job groups and pay steps within officials' ranks and public employees' professional titles will be adjusted, encouraging officials and public employees to improve their professional and vocational qualifications.
+ The appointment to officials' ranks or public employees' professional titles must be linked to job positions and the structure of officials' ranks and public employees' professional titles will be implemented by the managing agencies and organizations responsible for officials and public employees
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