Increasing the Salary by 7% Annually When Implementing Wage Reform for the Army and Police from 2025?
Increase Salary by 7% Annually for Military and Police from 2025 When Implementing Wage Reform?
Morning of October 23, 2023, at the National Assembly House, Hanoi Capital, under the chairmanship of Politburo Member, National Assembly Chair Vuong Dinh Hue, the 6th Session of the 15th National Assembly officially opened.
The Prime Minister of the Government of Vietnam stated that in 2025, the Government of Vietnam will implement a wage policy reform for the public sector according to Resolution 27-NQ/TW 2018 of the Central Committee from July 1, 2024.
At the same time, the Government of Vietnam will also continue to adjust the regional minimum wage and wage policies for the business sector as per regulations.
Starting from 2025, continue to adjust the average wage increase of 7%/year for officials and public employees, armed forces until the lowest wage equals or exceeds the minimum wage of Region I in the business sector.
Military and police will receive an average annual wage increase of 7% starting from 2025 until the lowest wage equals or exceeds the minimum wage of Region I in the business sector.
Increase Salary by 7% Annually When Implementing Wage Reform for Military and Police from 2025?
How Will the Military and Police Salary Scale Change When Wage Reform Takes Effect in 2024?
According to Resolution 27-NQ/TW 2018, the current statutory pay rate and wage coefficient will be abolished, constructing a basic wage amount as specified in the new salary scale.
The salary scale for the military and police as defined in subsection 3.1 Section 3 Part II of Resolution 27-NQ/TW 2018 stipulates the contents of the reform about designing the new salary structure for the public sector as follows:
- Basic salary (accounting for approximately 70% of the total salary fund)- Various allowances (accounting for approximately 30% of the total salary fund)- Additional bonuses (bonus fund making up about 10% of the total annual salary fund, excluding allowances)
Three new salary scales will be constructed and issued for the military and police based on job positions, titles, and leadership roles, replacing the current salary system; old salaries will be transitioned to new ones, ensuring they are not lower than the current salaries, including:
- One salary scale for military officers, police officers, and non-commissioned police officers (by position, title, rank, or grade)- One salary scale for professional military and technical police specialists- One salary scale for national defense workers and police workers (maintaining the salary correlation of the armed forces compared to administrative officials as currently)
The salary of the military and police as stated in Resolution 27-NQ/TW 2018 will include additional income from bonuses (the bonus fund being about 10% of the total annual salary fund, excluding allowances) after the wage reform is implemented from July 1, 2024.
What Factors Govern the New Salary Scale for the Police and Military?
At point c clause 3.1 Section II of Resolution 27-NQ/TW 2018, specific factors are identified for designing the new salary scale as follows:
- Abolish the statutory pay rate and current wage coefficient, constructing a basic wage amount as specified in the new salary scale.- Expand the salary relationship as a basis for determining specific wage levels in the salary system, gradually approaching the salary relationship in the business sector in line with State resources.- Perfect policies for regular wage increases and early wage increases for officials and public employees and armed forces in line with the new salary scale regulations.
What is the Implementation Timeline for Wage Reform as Per Resolution 27?
Resolution 27-NQ/TW 2018 sets specific goals for wage reform from 2021 to 2025 and vision to 2030 as follows:
* For the Public Sector
- From 2021, implement new unified wage policies for officials and public employees, armed forces across the entire political system.- In 2021, the lowest wage for officials and public employees will equal the average minimum wage of all regions in the business sector.- Periodically increase wage levels in line with the consumer price index, economic growth rates, and state budget capacity.- By 2025, the lowest wage for officials and public employees will be higher than the average minimum wage of all regions in the business sector.- By 2030, the lowest wage for officials and public employees will equal or exceed the highest regional minimum wage in the business sector.
* For the Business Sector
- From 2021, the State will periodically adjust regional minimum wage levels based on recommendations from the National Wage Council. Businesses will implement wage policies based on negotiations and agreements between employers and employees and their representatives; the State will not directly intervene in enterprise wage policies.- Manage labor and wages in state-owned enterprises through wage cost quotas linked to the enterprises' business tasks by 2025 and move towards assigning business tasks to enterprises by 2030.
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