Minimum Wage Levels for Officials Starting from July 01, 2024, After Implementing Wage Reforms
What salary scale will be applied to officials and public employees from July 1, 2024?
The National Assembly passed the Resolution on the state budget estimates for 2024 on November 10, 2023. Notably, the Resolution dedicates Article 3 to implementing wage policies.
To be specific, the Resolution clearly states that from July 1, 2024, a comprehensive reform of wage policies will be implemented according to Resolution 27-NQ/TW of 2018 of the Seventh Conference of the 12th Central Committee.
The funding source for the wage reform is assured from the Central and local accumulated wage reform funds, along with a portion allocated within the state budget expenditure estimates.
At the same time, adjustments will be made to pensions, social insurance allowances, monthly allowances, preferential allowances for people with meritorious service, and some social security policies linked to the statutory pay rate.
Therefore, from July 1, 2024, the salary scale for officials and public employees will be applied as follows:
- A position salary scale applicable to officials and public employees holding leadership positions (elected and appointed) in the political system from the Central to the commune level.
This salary scale is built on the principle that:
The position salary must reflect the hierarchy within the political system; any leadership position held should warrant a salary for that position, if one person holds multiple positions, the highest salary applies; equivalent leadership positions should have the same position salary; the position salary for higher-level leaders must be higher than that for lower-level leaders;
A single position salary is specified for each equivalent type of position; ministries and central authorities, committees, and their equivalents at the Central level are not categorized differently when constructing the Central position salary scale; different position salaries are not differentiated for the same leadership title according to administrative unit classification at the local level but are implemented through allowance policies.
The differentiation of equivalent leadership positions within the political system to design the position salary scale is decided by the Politburo after reporting to the Central Committee.
- A professional and specialized salary scale according to the official rank and public employee job title applied uniformly to officials and public employees not holding leadership titles.
This salary scale is built on the principle that:
The same level of job complexity warrants the same salary; higher-than-normal working conditions and professional incentives are implemented through professional allowance policies.
Realign the group of ranks and number of steps within the official ranks, public servant job titles, encouraging officials and public employees to improve their professional qualifications. Appointment to the official rank or public employee job title must be linked to the job position and structure of the official rank, public employee job title managed by the agency, organization, unit managing officials and public employees.
Minimum salary for officials from July 1, 2024 when implementing wage reform
What is the minimum salary for officials from July 1, 2024, when implementing wage reform?
In Section II of Resolution 27-NQ/TW of 2018 specific goals are outlined for wage reform implementation as follows:
(1) From 2018 to 2020
- Continue to adjust the statutory pay rate according to the National Assembly's resolution, ensuring it is not lower than the consumer price index and suitable with economic growth; do not add new professional allowances.
- Complete the construction and issuance of new wage policies according to the content of wage policy reform, linked to administrative reform timelines, staff reduction; innovate and reorganize the apparatus structure of the political system; innovate public service provision according to the Central Committee's resolution.
(2) From 2021 to 2025 and with a vision to 2030
- From 2021, apply new uniform wage policies to officials and public employees, armed forces across the entire political system.
- In 2021, the lowest salary for officials and public employees is equal to the average minimum wage of different regions in the enterprise sector.
- Periodically adjust the salary to suit the consumer price index, economic growth rate, and the state budget's capacity.
- By 2025, the lowest salary for officials and public employees will be higher than the average minimum wage of different regions in the enterprise sector.
- By 2030, the lowest salary for officials and public employees will be equal to or higher than the highest minimum wage in the enterprise sector in the highest region.
The minimum salary for officials when implementing wage reform:
In 2025 will be higher than the average minimum wage of different regions in the enterprise sector.
At the same time, from 2025 onwards, continue adjusting salaries to increase an average of 7% per year for officials and public employees, armed forces until the lowest salary is equal to or higher than the minimum salary in Region I of the enterprise sector.
Will seniority allowance for officials and public employees be officially abolished from July 1, 2024?
One notable point of the wage reform from July 1, 2024, is the abolishment of the seniority allowance for officials. Resolution 27-NQ/TW of 2018 outlines the reorganization of existing allowance policies, ensuring the total allowance fund accounts for a maximum of 30% of the total salary fund as follows:
- Continue to apply concurrent position allowances; over-frame seniority allowance; regional allowances; job responsibility allowances; mobility allowances; service allowances for security, defense, and special allowances for the armed forces (military, police, cybersecurity).
- Combine professional preferential allowances, professional responsibility allowances, and hazardous, dangerous allowances (collectively referred to as professional allowances) applicable to officials and public employees in professions and jobs with higher-than-normal working conditions and appropriate state incentive policies (education and training, healthcare, judiciary, prosecution, civil judgment enforcement, inspection, audit, customs, forest protection, market management, ...). Combine special allowances, attraction allowances, and long-term work allowances in areas with particularly difficult socio-economic conditions into allowances for working in particularly difficult areas.
- Abolish the seniority allowance (except for military, police, cybersecurity to ensure salary correlation with officials); leadership position allowances (as leadership titles within the political system apply position salary); party, social-political organization activity allowances; public service allowances (as it has been included in the basic salary); hazardous, dangerous allowances (as the working conditions with hazardous, dangerous factors have been included in the professional allowances).
Recently, the National Assembly passed the Resolution on the state budget estimates for 2024. The Resolution clearly states that from July 1, 2024, comprehensive wage policy reform will be implemented according to Resolution 27-NQ/TW of 2018. Thus, it means that the seniority allowance will be officially abolished from July 1, 2024.
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