Minimum official salary will increase from 2.43 million VND to 4.1 million VND with salary reform from July 01, 2024, right?
The minimum official salary will be raised from 2.43 million VND to 4.1 million VND from July 1, 2024, is that correct?
On the morning of December 20, the National Wages Council held its second meeting of 2023 to discuss and negotiate the plan to adjust the regional minimum wage for 2024.
Concluding the meeting, after listening to the opinions of relevant parties, Mr. Le Van Thanh, Deputy Minister of Labor - Invalids and Social Affairs, Chairman of the National Wages Council, stated that all members of the National Wages Council present at the meeting voted to set the regional minimum wage increase for 2024 at 6%, to be applied from July 1, 2024.
Recently, the Chairman of the National Assembly signed and promulgated Resolution 104/2023/QH15 on the State Budget Estimate for 2024.
In Resolution 104/2023/QH15 (effective from December 25, 2023), it is mentioned that a comprehensive reform of wage policies will be implemented following Resolution 27-NQ/TW 2018 from July 1, 2024.
According to the spirit of Resolution 27-NQ/TW 2018, the goals set for officials (public sector) when implementing wage reforms are as follows:
Specific Goals
...
(2) From 2021 to 2025 and vision towards 2030
a) For the public sector
- From 2021, apply new unified wage policies for officials and public employees, armed forces across the entire political system.
- In 2021, the minimum wage for officials and public employees equals the average minimum wage of the enterprise sector across regions.
- Periodically adjust the wage level in line with the consumer price index, economic growth rate, and state budget capacity.
- By 2025, the minimum wage for officials and public employees will be higher than the average minimum wage of the enterprise sector across regions.
- By 2030, the minimum wage for officials and public employees will be equal to or higher than the highest regional minimum wage of the enterprise sector.
With the regional minimum wage increase of 6%, the enterprise sector’s wage levels are expected to be divided into 4 regions as follows:
| Region | Monthly Minimum Wage
(Unit: VND/month) || --- | --- || Region 1 | 4,960,000 || Region 2 | 4,410,000 || Region 3 | 3,860,000 || Region 4 | 3,450,000 |
Thus, the average minimum wage of the enterprise sector after increasing the regional minimum wage by 6% will be around 4.1 million VND.
Currently, in Table 2 of the specialized salary scale for officials in state agencies issued with Decree 204/2004/ND-CP, supplemented by point d, clause 2, Article 1 of Decree 17/2013/ND-CP, the lowest salary coefficient for officials of C3 group grade 1 type C is 1.35.
From July 1, 2022, the statutory pay rate increased to 1,800,000 VND/month (according to Decree 24/2023/ND-CP).
The current minimum wage for officials is 2,430,000 VND/month.
Therefore, according to the goal set in Resolution 27-NQ/TW 2018, the minimum wage for officials may be raised from 2.43 million VND/month to 4.1 million VND/month.
By 2025, the minimum wage for officials will be higher than the average minimum wage of the enterprise sector across regions.
By 2030, the minimum wage for officials will be equal to or higher than the highest regional minimum wage of the enterprise sector.
The minimum official salary will be raised from 2.43 million VND to 4.1 million VND from July 1, 2024, is that correct? (Image from the internet)
What will the officials' salary scale look like from July 1, 2024, when wage reform is implemented?
According to the spirit of Resolution 27-NQ/TW 2018, when wage reform is implemented, officials will be provided with two new salary scales based on job position, title, and leadership position to replace the current salary system; transition the old salary to the new salary scale, ensuring it’s not lower than the current salary.
However, there is no official information or documentation regarding the specifics of the two new official salary scales that will be applied from July 1, 2024.
Although the official salary scale for wage reform from July 1, 2024, has not been specifically detailed for officials, according to the spirit of Resolution 27-NQ/TW 2018, the two new salary scales for officials will be built based on the following principles:
Salary Scale 01: The positional salary scale applies to officials and public employees holding elected and appointed leadership positions in the political system from central to communal levels.
- The positional salary must reflect the hierarchy within the political system; holding which leadership position corresponds to its salary; if one person holds multiple positions, they receive the highest positional salary; holding equivalent leadership positions entails equal positional salary; the positional salary of superior leaders must be higher than that of subordinate leaders;
- Stipulate one positional salary for each equivalent leadership position; do not classify ministries and central authorities, committees, and equivalent units at the central level when constructing a central positional salary scale; do not differentiate positional salary among equivalent leadership titles based on administrative unit classification at the local level but implement through policy allowances. The classification of equivalent leadership positions within the political system to design the positional salary scale is decided by the Politburo after reporting to the Central Executive Committee.
Salary Scale 02: The professional and vocational salary scale for officials and public employee positions applies generally to those not holding leadership titles.
- Each vocational position, public employee vocational title has multiple salary grades based on the principle: The same degree of job complexity earns the same salary; higher-than-normal working conditions and occupational preferences are handled through occupational allowance policies; reevaluate group classifications and the number of salary grades for official and public employee vocational titles, encouraging officials and public employees to enhance their specialized and professional qualifications.
- Appointment to official or public employee vocational titles must correlate with job position and official or public employee vocational title structure managed by agencies, organizations, or units.
Who are considered officials?
According to the provisions of Clause 2, Article 4 of the Law on Officials 2008, amended by Clause 1, Article 1 of the Law on Officials and Public Employees Amended 2019, officials are Vietnamese citizens who are recruited, appointed to grades, positions, or titles equivalent to their job positions in agencies of the Communist Party of Vietnam, the State, socio-political organizations at the central, provincial, and district levels;
In agencies, units within the People's Army that are not officers or professional soldiers, defense workers;
In agencies, units within the People's Public Security that are not officers or professional non-commissioned officers, public security workers, bio-salaried, and paid from the state budget.
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