Resolution 104/2023/QH15 finalizing salary reform for officials and increasing pensions from July 1, 2024
Resolution 104/2023/QH15 on Wage Reform for Officials from July 1, 2024?
The President of the National Assembly has signed and promulgated Resolution 104/2023/QH15 regarding the State Budget Estimate for 2024.
Effective from July 1, 2024, a comprehensive wage policy reform is officially implemented following Resolution 27-NQ/TW of 2018 (The funding sources for wage reforms are ensured from accumulated wage reform funds from the central budget, local budgets, and partially arranged within the state budget expenditure estimates); adjusting pensions, social insurance allowances, monthly allowances, preferential allowances for people with meritorious services, and some social welfare policies linked to the statutory pay rate.
Thus, when the wage reform for public employees starts on July 1, 2024, the National Assembly also resolves to increase pensions at this same time.
Based on the wage reform roadmap in Resolution 27-NQ/TW of 2018:
- By 2025, the minimum wage for officials and public employees will be higher than the average minimum wage for enterprises across regions.- By 2030, the minimum wage for officials and public employees will be equal to or higher than the highest minimum wage of the enterprise sector in the highest region.
Resolution 104/2023/QH15 finalizes the wage reform for officials and pension increase from July 1, 2024.
Will uniform wage policies be implemented from July 1, 2024, and will all special mechanisms be abolished?
According to the wage policy content in Resolution 104/2023/QH15, for government agencies at the central level implementing special financial and income management mechanisms, from July 1, 2024, all special financial and income management mechanisms of these agencies will be abolished; unified wage, allowance, and income policies will apply.
Simultaneously, the current special mechanism will no longer be applied to regular budget allocations under special financial management (operational costs, capacity enhancement, modernization, ensuring professional activities, etc.) of government agencies.
The National Assembly assigns the Government of Vietnam to implement and report to the National Assembly at the 8th Session.
How will wages for officials and public employees change in 2024?
In Resolution 104/2023/QH15, the National Assembly resolves:
Regarding the implementation of wage policies
From July 1, 2024, comprehensive wage policy reforms will be implemented following Resolution 27-NQ/TW of May 21, 2018, from the 7th Conference of the 12th Central Committee (Funding for wage reforms is ensured from accumulated wage reform funds from the central budget, local budgets, and partially arranged within state budget expenditure estimates); adjusting pensions, social insurance allowances, monthly allowances, preferential allowances for people with meritorious services, and some social welfare policies linked to the statutory pay rate.
For government agencies at the central level implementing special financial and income management mechanisms:
a) From January 1, 2024, to June 30, 2024: Monthly salaries and additional incomes are calculated according to a statutory pay rate of VND 1.8 million/month under special mechanisms, ensuring not to exceed the salaries and additional incomes received in December 2023 (excluding salary and additional income adjustments from the adjustment of wage coefficients upon promotion in 2024). If the 2024 salaries and additional incomes under special mechanisms are lower than the salaries under general regulations, only the general wage policies will apply to ensure employee benefits.
b) From July 1, 2024: All special financial and income management mechanisms of government agencies will be abolished; unified wage, allowance, and income policies will apply. The current special mechanism will no longer be applied to regular budget allocations under special financial management (operational costs, capacity enhancement, modernization, ensuring professional activities, etc.) of government agencies. The Government of Vietnam is assigned to implement and report to the National Assembly at the 8th Session.
- Ministries, central agencies, and localities continue to implement solutions to create sources for wage policy reforms as prescribed. Continued exclusion of some revenue items when calculating local budget revenue increases for wage reforms, as specified in Clause 2, Article 3 of Resolution 34/2021/QH15 of November 13, 2021, by the National Assembly.
Accordingly, wages for officials and public employees in 2024 are applied in two phases:
Phase 1: From January 1, 2024, to June 30, 2024, the statutory pay rate continues to be applied at VND 1,800,000, and wages are calculated by the coefficient and statutory pay rate.
Phase 2: From July 1, 2024, the statutory pay rate is replaced by new wage policies following Resolution 27-NQ/TW of 2018.
Additionally, Resolution 27-NQ/TW of 2018 also mentions the development and issuance of a new salary table system based on job positions, titles, and leadership positions, replacing the current salary table system; transitioning from the old salary to the new salary, ensuring not less than the currently enjoyed salary.
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