Who will receive security and national defense allowances during the 2024 salary reform in Vietnam according to Resolution 27?
Who will receive security and national defense allowances after the 2024 salary reform in Vietnam?
The security and national defense allowance is stipulated at Point dd Clause 8 Article 6 Decree 204/2004/ND-CP of the Government of Vietnam. This allowance applies to individuals working in agencies and units of the armed forces and the cipher force but not classified in the payrolls:
- Payroll for military rank officers of the People's Army, officers, and non-commissioned officers of the People's Public Security;
- Payroll for professional soldiers in the People's Army and technical specialists in the People's Public Security.
Also, in Article 6 of Decree 204/2004/ND-CP, the security and national defense allowance is calculated at either 30% or 50% of the current salary plus the leadership position allowance and seniority allowance (if any).
Furthermore, per the detailed guidance in Clause 4 Article 7 of Circular 07/2017/TT-BNV, the security and national defense allowance is stipulated as follows:
- 50% level: officials, public employees, including those paid from the state budget, directly working in units producing documents, manufacturing and assembling cipher machines, and technical equipment for cryptography;- 30% level: Other officials and public employees paid from the state budget working in cipher organizations.
These allowances are calculated and paid together with monthly salaries and are not used to calculate or provide social insurance benefits or health insurance.
In Resolution 27-NQ/TW of 2018, it is mentioned that the security and national defense allowance will continue to apply. Therefore, individuals currently receiving this allowance may continue to enjoy it post-salary reform.
Who will receive security and national defense allowances during the 2024 salary reform in Vietnam according to Resolution 27? (Image from the Internet)
What is the salary reform roadmap in Vietnam according to Resolution 27?
In Resolution 27-NQ/TW 2018, a roadmap for salary reform from 2021 to 2025, with a vision to 2030, is presented as follows:
- For the public sector:
+ From 2021, apply new unified wage policies for officials, public employees, and armed forces nationwide.
+ In 2021, the minimum wage of officials and public employees is equal to the average minimum wage of various regions in the enterprise sector.
+ Periodically increase wages in line with the consumer price index, economic growth rate, and state budget capacity.
+ By 2025, the minimum wage of officials and public employees will be higher than the average minimum wage of various regions in the enterprise sector.
+ By 2030, the minimum wage of officials and public employees will be equal to or higher than the minimum wage of the highest region in the enterprise sector.
- For the enterprise sector:
+ From 2021, the state periodically adjusts regional minimum wages based on recommendations from the National Wage Council. Enterprises will implement wage policies based on negotiations between employers, employees, and collective representatives; the state will not directly intervene in enterprise wage policies.
+ Manage labor and wages in state-owned enterprises based on wage cost norms linked to business tasks through 2025 and toward assigning business tasks directly to enterprises by 2030.
When will salary reform take place in Vietnam?
On the afternoon of September 19, 2023, National Assembly Chairman Vuong Dinh Hue, in his closing speech at the Vietnam Economic - Social Forum 2023, emphasized the need for fundamental wage policy reform in 2024.
"This is a reform, not a regular raise. If there is no change, we may start implementing it from July 1, 2024."
Additionally, at the 8th Conference of the 13th Central Committee of the Communist Party, General Secretary Nguyen Phu Trong presided and delivered the opening speech, in which he highlighted the necessity and appropriateness of implementing new wage policies from July 1, 2024.
On November 10, with the majority of delegates agreeing (94.33%), the National Assembly passed a resolution on the state budget estimate for 2024.
To be specific, the resolution stated:
"From July 1, 2024, we will undertake a comprehensive reform of wage policies according to Resolution 27-NQ/TW 2018 of the 7th Conference of the 12th Central Committee."
The funding for implementing salary reform will be ensured from the accumulated salary reform reserves of the central and local budgets and partially arranged in the balanced state budget expenditure estimates.
Simultaneously, adjust pensions, social insurance allowances, monthly allowances, preferential allowances for credited individuals, and some social security policies linked to the statutory pay rate.
Thus, the National Assembly has officially approved the salary reform start date as July 1, 2024, according to Resolution 27-NQ/TW 2018.
LawNet