Official Elimination of Statutory Pay Rate from July 1, 2024, in the Implementation of Salary Reform for Public Officials and Employees
Officially Abolishing Statutory Pay Rate from July 1, 2024, When Implementing Salary Reform for Officials and Public Employees?
On November 10, with a majority of deputies in favor (94.33%), the National Assembly passed the Resolution on the State Budget Estimates for 2024. Notably, the Resolution dedicates Article 3 to the implementation of the salary policy.
To be specific, the Resolution states:
"From July 1, 2024, a comprehensive reform of the salary policy will be implemented according to Resolution 27-NQ/TW 2018 of the Seventh Plenary Session of the 12th Central Committee."
The National Assembly officially passed the timeline for salary reform starting July 1, 2024, according to Resolution 27-NQ/TW 2018.
According to the spirit of Resolution 27-NQ/TW 2018, when implementing salary reform, the statutory pay rate and current salary coefficients will be abolished, constructing a basic salary level with specific amounts in the new salary table.
Thus, from July 1, 2024, when implementing salary reform, the statutory pay rate, current salary coefficients for officials and public employees will be abolished.
Instead, two new salary tables will be constructed for officials and public employees as follows:
- Constructing a position-based salary table applicable to officials and public employees holding leadership positions (elected and appointed) within the political system from the Central to the commune level according to the principle:
+ Position-based salaries must reflect ranking within the political system; holding a leadership position, one receives the salary for that position; if one person holds multiple positions, they receive the highest position-based salary; holding equivalent leadership positions, the position-based salary is the same; the salary of higher-level leaders must be higher than that of lower-level leaders;
+ Defining a position-based salary for each type of equivalent position; not classifying ministries and central authorities, committees, and equivalents at the Central level when constructing the position-based salary table at the Central level; not distinguishing different position-based salaries for the same leadership title according to the classification of administrative units at the local level but implementing it through allowance policies. The classification of equivalent leadership positions within the political system to design the position-based salary table is decided by the Politburo after reporting to the Central Committee.
- Constructing a professional, occupational salary table according to official ranks and professional titles for public employees, generally applicable to officials and public employees not holding leadership titles; each official rank, professional title has many salary steps according to the principle:
+ The same level of job complexity means the same salary; higher-than-normal working conditions and professional incentives are implemented through professional allowance policies; rearranging the group ranks and the number of steps within the official ranks, professional titles of public employees, encouraging officials and public employees to improve their professional and occupational qualifications.
+ Appointment to an official rank or professional title of public employees must be associated with job positions and the structure of official ranks, professional titles of public employees managed by the agencies, organizations, units managing officials and public employees.
Officially Abolishing Statutory Pay Rate from July 1, 2024, When Implementing Salary Reform for Officials and Public Employees?
How Will the Salaries of Officials and Public Employees Be Calculated When the 2024 Salary Reform Is Implemented?
According to the spirit of Resolution 27-NQ/TW 2018, after implementing salary reform, a new salary structure for officials and public employees will be designed to include:
- Basic salary (accounting for about 70% of the total salary fund)
- Allowances (accounting for about 30% of the total salary fund)
- Bonus addition (with a bonus fund of approximately 10% of the total annual salary fund, excluding allowances).
*Note: The bonus will account for about 10% of the total annual salary fund, excluding allowances.
The new salary table for officials and public employees will be calculated according to the following formula:
| Officials and Public Employees' Salary = Basic Salary + Allowance (if any) + Bonus (if any). || --- |
Which Officials and Public Employees Are Subject to the Statutory Pay Rate for Calculating Salary and Allowance?
According to the provisions of Article 2 of Decree 24/2023/ND-CP on officials and public employees who are subject to the statutory pay rate for calculating salary and allowance include:
- Officials and civil servants from the central to district level as prescribed in Clauses 1 and 2, Article 4 of the Law on Cadres and Civil Servants 2008 (amended and supplemented in the Law on Cadres and Civil Servants and the Law on Public Employees 2019).
- Commune-level officials and civil servants as prescribed in Clause 3, Article 4 of the Law on Cadres and Civil Servants 2008 (amended and supplemented in the Law on Cadres and Civil Servants and the Law on Public Employees 2019).
- Public employees in public service providers as stipulated in the Law on Public Employees 2010 (amended and supplemented in the Law on Cadres and Civil Servants and the Law on Public Employees 2019).
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