No more special salary and allowance mechanisms for officials and public employees from 2025, is that correct?
From 2025, there will no longer be special salary and allowance mechanisms for officials and public employees, right?
On May 22, 2024, the Prime Minister issued Directive 17/CT-TTg 2024 on the construction of the Socio-Economic Development Plan and State Budget Estimates for 2025.
In Directive 17/CT-TTg 2024, the following content is presented:
The construction of the 2025 State Budget estimates ensures the provisions of the law; principles, criteria, and norms for allocating development investment funds and regular State Budget expenditures approved by competent authorities; meets the requirements for restructuring the budget according to Resolution 07-NQ/TW 2016 of the Politburo, connected with the strengthening of the rearrangement of organizational structure, streamlining of staffing, and consolidation of public service units; the budget for new wage policies, pension adjustments, social insurance allowances, preferential treatment allowances for those with meritorious services, and social subsidies starting from July 1, 2024.
Ensure resources to continue implementing wage and social insurance policies according to Resolution 27-NQ/TW 2018, Resolution 28-NQ/TW 2018 of the 7th Plenum of the 12th Central Committee and Resolution 104/2023/QH15 of the 15th National Assembly.
Additionally, at point g, sub-item 2, Item I of Directive 17/CT-TTg 2024 provides content on the 2025 socio-economic development plan for State budget expenditure estimates for agencies and units currently applying specific financial mechanisms as follows:
From the 2025 budget year, state administrative management agencies and units will no longer apply specific financial mechanisms for salaries, allowances, income, and regular expenditure funds. Units shall prepare their revenue and expenditure estimates for 2025 based on the competent authorities' decision on the financial mechanism applicable from July 1, 2024, and for 2025, in accordance with Resolution 104/2023/QH15 of the National Assembly on the 2024 State Budget estimate.
No more special salary and allowance mechanisms for officials and public employees from 2025, right?
How will the salary table for officials and public employees be when wage reform according to Resolution 27 is implemented?
According to the spirit of Resolution 27-NQ/TW 2018 on wage reform, two salary tables for officials and public employees will be constructed according to job positions, titles, and leadership positions to replace the current salary system; the transfer from the old salary to the new salary will ensure that it is not lower than the current salary enjoyed, including:
- Constructing one salary table for positions for officials and public employees holding leadership positions (elected and appointed) in the political system from the Central to the commune level according to the principle:+ The positional salary level must reflect the rank in the political system; if holding a certain leadership position, the salary corresponds to that position, if one person holds multiple positions, they receive the highest positional salary; if the leadership positions are similar, they receive the same positional salary; the positional salary of a higher-level leader must be higher than the positional salary of a lower-level leader;+ Stipulate one positional salary level for each equivalent position type; do not classify ministries and central authorities, boards, committees, and equivalents at the Central level when constructing the positional salary table in the Central; do not differentiate positional salary levels for the same leadership title by administrative unit classification in the locality, but instead implement it through allowance policies. The equivalence classification of leadership positions in the political system for constructing the positional salary table is decided by the Politburo after reporting to the Central Executive Committee.
- Constructing one professional and occupational-specific salary table according to the ranks of officials and professional titles of public employees, applicable to officials and public employees not holding leadership titles; each rank and professional title of public employee has multiple salary grades according to the principle:+ The same level of job complexity corresponds to the same salary level; higher-than-normal working conditions and professional preferences are implemented through professional allowances; rearrange the groups of ranks and grades within the ranks of officials and professional titles of public employees, encourage officials and public employees to improve their professional and occupational skills.+ Appointment to the rank of officials or the professional title of public employees must be associated with the job position and structure of ranks of officials, professional titles of public employees managed by the agency, organization, or unit.
What allowances will officials and public employees receive from July 1, 2024?
According to the spirit of Resolution 27-NQ/TW 2018 on wage reform, there will be 9 types of allowances under the new wage policies for officials and public employees as follows:
- 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 according to administrative unit classification;
Furthermore, Resolution 27-NQ/TW 2018 clearly states:
a) Designing 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).
The above allowances will account for approximately 30% of the total salary fund.
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