Minimum Wage Levels for Officials When Implementing Wage Reform from July 01, 2024: What Are They?
What salary scales for officials and public employees will apply from July 1, 2024?
The National Assembly has passed the Resolution on the state budget estimate for 2024 on November 10, 2023. Notably, the Resolution dedicates Article 3 to the implementation of wage policies.
To be specific, the Resolution states clearly that from July 1, 2024, a comprehensive reform of wage policies will be implemented according to Resolution 27-NQ/TW 2018 of the Seventh Plenum of the 12th Central Committee.
The funding source for wage reforms is ensured from the accumulated wage reform funds of the Central budget, local budgets, and a portion allocated in the state budget's balanced expenditures.
Additionally, adjustments will be made to pensions, social insurance allowances, monthly allowances, allowances for persons with meritorious services, and some social security policies linked to the statutory pay rate.
Thus, from July 1, 2024, the salary scales for officials and public employees will be applied as follows:
- 1 position-based salary scale for officials and public employees holding leadership positions (elected and appointed) in the political system from the central level to the commune level.
This salary scale is built based on the following principles:
The position-based salary must reflect the hierarchy in the political system; any individual holding a leadership position will receive a salary corresponding to that position—if one person holds multiple positions, they will receive the highest position-based salary; equivalent leadership positions receive equivalent salaries; the position-based salary for higher-level leaders must be higher than for lower-level leaders;
Determining one position-based salary level for each type of equivalent position; not categorizing ministries and central authorities, committees, commissions, and equivalents at the Central level when building the central position-based salary table; not differentiating position-based salaries for the same leadership titles according to administrative unit classifications at the local level but implementing through allowance policies.
The classification of equivalent leadership positions in the political system to design the position-based salary table is decided by the Politburo after reporting to the Central Executive Committee.
- 1 professional and occupational salary scale according to the ranks of officials and job titles of public employees, applied uniformly to officials and public employees not holding leadership titles.
This salary scale is built based on the following principles:
The same level of job complexity should result in the same salary level; higher-than-normal working conditions and occupational incentives should be implemented through occupational allowance policies.
Reorganizing the group of ranks and number of steps within the ranks of officials, job titles of public employees, encouraging officials and public employees to improve their professional qualifications. The appointment to the rank of officials or job titles of public employees must be linked to job positions and the rank structure managed by the agencies, organizations, units managing officials and public employees.
Minimum salary of officials when implementing wage reform from July 1, 2024
What is the minimum salary of officials when implementing wage reform?
Section II of Resolution 27-NQ/TW 2018 outlines specific objectives for implementing wage reform as follows:
(1) From 2018 to 2020
- Continue to adjust the statutory pay rate according to the National Assembly's resolution, ensuring it does not fall below the consumer price index and aligns with economic growth rate; do not add new occupational allowances.
- Complete the development and issuance of new wage policies according to the content of wage policy reform, linked with administrative reform, downsizing, and the restructuring of the political system's organizational apparatus; renewing public service providers according to Central resolutions.
(2) From 2021 to 2025 and a vision to 2030
- From 2021, adopt new unified wage policies for officials and public employees, armed forces throughout the entire political system.
- In 2021, the lowest salary of officials and public employees will be equal to the average minimum salary of regions in the enterprise sector.
- Periodically adjust salary levels in line with the consumer price index, economic growth, and state budget capacity.
- By 2025, the lowest salary for officials and public employees will be higher than the average minimum salary of regions in the enterprise sector.
- By 2030, the lowest salary for officials and public employees will be equal to or higher than the minimum salary of the highest region in the enterprise sector.
The minimum wage for officials when implementing wage reform is as follows:
From July 1, 2024, implementing wage reform ensures that public sector salaries are not lower than current wages.
In 2025, the wage will be higher than the average minimum wage of regions in the enterprise sector.
Simultaneously, from 2025 onward, continue adjusting average wage increases by 7% per year for officials and public employees, armed forces until the lowest wage is equal to or higher than the minimum wage of Region I in the enterprise sector.
Official abolition of occupational seniority allowances from July 1, 2024, for officials and public employees?
One of the notable points of wage reform from July 1, 2024, is the abolition of occupational seniority allowances for officials. According to Resolution 27-NQ/TW 2018, the reorganization of existing allowance policies ensures that the total allowance fund accounts for a maximum of 30% of the total salary fund, implemented as follows:
- Continue to apply concurrent responsibility allowance; seniority allowance above the salary bracket; regional allowances; job responsibility allowance; mobility allowance; security, national defense service allowance, and special allowances for the armed forces (military, police, cryptographic).
- Combine occupational incentive allowances, job responsibility allowances, and hazardous and dangerous allowances (collectively referred to as occupational allowances) for officials and public employees in occupations and jobs with higher than usual working conditions and appropriate state policies (education and training, healthcare, judiciary, prosecution, civil judgment enforcement, inspection, examination, auditing, customs, forestry, market management, etc.). Merge special allowances, attraction allowances, and long-term service grants in regions with particularly difficult socio-economic conditions into a single allowance for work in especially difficult areas.
- Abolish occupational seniority allowances (except for the military, police, cryptographic to ensure wage correlation with officials); leadership position allowances (as leadership positions in the political system are ranked by position); party, political-social organization work allowances; public service allowances (as they have been included in the basic salary); hazardous, dangerous allowances (as the hazardous, dangerous working conditions have been included in the occupational allowances).
Recently, the National Assembly passed the Resolution on the state budget estimate for 2024. The Resolution clearly states that from July 1, 2024, a comprehensive reform of wage policies will be implemented according to Resolution 27-NQ/TW 2018. This means that the occupational seniority allowance will officially be abolished from July 1, 2024.
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