Salary Increases for the Military and Police Under the 2024 Salary Reform: What to Expect?
What salary increases will the military and police receive when implementing the 2024 wage reform?
The Prime Minister indicated that from 2025 onwards, salary adjustments will continue with an average annual increase of 7% for officials and public employees, armed forces until the minimum salary is equal to or higher than the minimum salary of region I in the business sector.
The salary table for the military and police will increase by 7% each year from January 07, 2024, until the minimum salary is equal to or higher than the minimum salary of region I in the business sector.
Therefore, starting July 1, 2024, the salary table for the military and police will increase for the following reasons:
- The salary table will be arranged according to job positions, titles, and leadership roles, replacing the current salary table system and not lower than the current salary.
- A 7% annual increase from 2025 when implementing wage reform until the minimum salary is equal to or higher than the minimum salary of region I in the business sector.
- Income from bonuses (if any), with a bonus fund of approximately 10% of the total annual salary fund, excluding allowances.
What salary increases will the military and police receive when implementing the 2024 wage reform? (Image from the Internet)
What changes will be made to social insurance benefits for the military and police starting July 1, 2024?
From July 1, 2024, the statutory pay rate and the current salary coefficient will be abolished, and a basic salary will be established with specific amounts in the new salary table.
Accordingly, after the wage reform, a new salary table system will be established and issued according to job positions, titles, and leadership roles for officials and public employees replacing the current salary table system; transferring the old salary to the new salary, ensuring it is not lower than the current salary.
According to current regulations, some allowances linked to the statutory pay rate include:
Allowance for recuperation and rehabilitation after illness.
One-time allowance for childbirth, adoption of a child.
Allowance for recuperation and rehabilitation after maternity leave; funeral allowance.
Monthly survivor allowance.
...
To ensure uniform implementation of legal regulations after the wage reform, Section 6 Part III of Resolution 27/NQ-TW in 2018 has outlined the tasks to amend and improve the laws on social insurance and related to wage policies in the public sector.
Thus, based on the above contents, the social insurance allowances linked to the statutory pay rate after the salary table change from July 1, 2024, will be abolished and possibly amended to be suitable.
In Submission No. 527/TTr-CP by the Government of Vietnam on the Draft Law on Social Insurance (amended) dated October 10, 2023, the Government of Vietnam is proposing to amend the allowances linked to the statutory pay rate by specifying a specific amount (equal to the current absolute regulation), while also stipulating that these amounts will be adjusted when the Government of Vietnam adjusts pensions and social insurance benefits.
When implementing the 2024 wage reform, the allowances linked to the statutory pay rate may be changed.
What is the roadmap for wage reform under Resolution 27?
According to Resolution 27-NQ/TW in 2018, the wage reform roadmap is as follows:
From 2021 to 2025 and vision to 2030
For the public sector
- From 2021, apply new unified wage policies for officials and public employees, armed forces throughout the entire political system.
- In 2021, the minimum salary for officials and public employees will be equal to the average minimum salary of various regions in the business sector.
- Periodically increase wages in line with the consumer price index, economic growth rate, and state budget capacity.
- By 2025, the minimum salary for officials and public employees will be higher than the average minimum salary of various regions in the business sector.
- By 2030, the minimum salary for officials and public employees will be equal to or higher than the minimum salary of the highest region in the business sector.
For the business sector
- From 2021, the State periodically adjusts the regional minimum wage based on recommendations from the National Wage Council. Businesses can implement wage policies based on negotiations and agreements between employers and employees and representatives of workers; the State does not directly intervene in business wage policies.
- Manage labor and wages in state-owned enterprises by linking wage cost accounting with business tasks of enterprises until 2025, and move towards assigning business tasks to enterprises by 2030.
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