Which Subjects Will Retain the Seniority Allowance After Implementing Wage Reform According to Resolution 27-NQ/TW?
Which individuals will retain seniority allowances after implementing wage reform according to Resolution 27-NQ/TW?
At sub-section d, Section 3 Resolution 27-NQ/TW in 2018 clearly states as follows:
d) Rearrange the current allowance policies to ensure the total allowance fund constitutes a maximum of 30% of the total salary fund.
- Continue to apply concurrent duties allowances; excessive seniority allowances; regional allowances; job responsibility allowances; mobile allowances; security, defense service allowances, and special allowances for armed forces (military, police, and cipher).
- Combine preferential profession allowances, professional responsibility allowances, and hazardous, dangerous allowances (collectively referred to as professional allowances) applicable to officials and public employees of professions and work with labor conditions higher than usual and with preferential policies of the State (education and training, health, judiciary, prosecution, civil judgment enforcement, inspection, auditing, customs, forestry control, market management,...). Combine the special allowance, attraction allowances, and long-term service assistance in areas with particularly difficult socio-economic conditions into allowances for working in particularly difficult areas.
- Abolish seniority allowances (except for the military, police, and cipher to ensure wage correlation with officials); leadership allowances (as leadership positions in the political system are subject to position-based salaries); party, political-social organization work allowances; public service allowances (as included in the basic salary); hazardous, dangerous allowances (as hazardous, dangerous labor conditions have been included in professional allowances).
- Newly stipulate allowance policies according to the classification of administrative units at the commune, district, and provincial levels.
- Consistently implement the monthly allowance fund for part-time workers at the commune, village, and town levels based on the recurrent expenditure ratio of the commune People's Committee; meanwhile, stipulate the maximum number of part-time workers for each type of commune, village, town. On this basis, the commune People's Committee presents to the same-level People's Council specific positions eligible for allowances, ensuring one position can handle multiple tasks but must ensure the quality and efficiency of the assigned work.
According to the above information, when implementing wage reform according to Resolution 27-NQ/TW in 2018, the seniority allowances will be abolished.
However, the military, police, and cipher will retain seniority allowances to ensure wage correlation with officials.
Which individuals will retain seniority allowances after implementing wage reform according to Resolution 27-NQ/TW?
What is the new salary structure?
Based on sub-section 3, Section II of Resolution 27-NQ/TW in 2018 which outlines the wage reform content for officials, public employees, and armed forces (public sector).
Content of Reform
3.1. For officials, public employees, and armed forces (public sector)
a) Design a new salary structure comprising: Basic salary (accounting for about 70% of the total salary fund) and allowances (accounting for about 30% of the total salary fund). Add bonuses (with the bonus fund being about 10% of the total annual salary fund, excluding allowances).
According to which, the salary structure for the public sector upon implementing wage reform will include:
- Basic salary (accounting for about 70% of the total salary fund);
- Allowances (accounting for about 30% of the total salary fund);
- Adding bonuses (with the bonus fund being about 10% of the total annual salary fund, excluding allowances).
Hence, it can be seen that the new salary structure for the armed forces includes the basic salary, allowances, and the addition of bonuses (with the bonus fund being about 10% of the total annual salary fund, excluding allowances).
What is the roadmap for wage reform according to Resolution 27?
Based on Resolution 27-NQ/TW in 2018, the roadmap for wage reform is outlined as follows:
From 2021 to 2025, with a vision to 2030
For the public sector
- From 2021, apply new unified salary policies for officials, public employees, and armed forces across the entire political system.
- In 2021, the lowest salary of officials and public employees equals the average minimum salary of all regions in the enterprise sector.
- Periodically adjust salary levels in line with the consumer price index, economic growth rate, and the capability of the state budget.
- By 2025, the lowest salary of officials and public employees will be higher than the average minimum salary of all regions in the enterprise sector.
- By 2030, the lowest salary of officials and public employees will equal or exceed the highest regional minimum salary in the enterprise sector.
For the enterprise sector
- From 2021, the State periodically adjusts the regional minimum salary based on the recommendations of the National Wage Council. Enterprises will implement salary policies based on negotiations, agreements between employers and employees, and the collective representation of employees; the State will not directly intervene in the salary policies of enterprises.
- Manage labor and wages in state enterprises by contracting salary costs linked to business performance until 2025, moving towards contracting business tasks of enterprises by 2030.
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