Proposal to Abolish Classification of Professional Titles According to the 2024 Salary Reform to Align with the New Salary Policy
Proposal to Abandon Regulation of Professional Title Ranks under 2024 Salary Reform to Synchronize with New Salary Policy?
According to the Report by the Government of Vietnam sent to the National Assembly regarding the implementation of several resolutions of the 14th National Assembly on thematic supervision, inquiry, and resolutions of the National Assembly on thematic supervision, inquiry from the beginning of the 15th term to the end of the 4th Session in the field of Internal Affairs, the Government of Vietnam has outlined the following tasks and solutions:
- Continue to direct and expedite specialized management ministries to promptly complete the amendment and supplementation of regulations on grade standards for officials and professional titles for public employees.
- Advise on the amendment of current regulations to significantly reduce administrative procedures in recruitment and promotion.
- Do not implement the regulation of professional title promotion exams for public employees but maintain only the regulation on promotion review.
- Propose research to abolish the regulation of professional title ranks in synchronization with the 2024 salary reform policy.
Proposal to Abandon Regulation of Professional Title Ranks under 2024 Salary Reform to Synchronize with New Salary Policy?
What is the Lowest Salary for Officials and Public Employees under the 2024 Salary Reform according to Resolution 27?
Based on Subsection 2.2 Section 2 Part II of Resolution 27/NQ-TW 2018, it states as follows:
GUIDING PRINCIPLES, OBJECTIVES, AND CONTENT OF THE REFORM
...
2. Objectives
2.2. Specific Objectives
...
(2) From 2021 to 2025 and Vision to 2030
a) For the Public Sector
- From 2021, apply a unified new salary policy for officials and public employees, and armed forces across the entire political system.
- In 2021, the lowest salary for officials and public employees is equal to the average minimum salary of enterprises across regions.
- Regularly adjust the salary level in accordance with the consumer price index, economic growth rate, and the state budget's capacity.
- By 2025, the lowest salary for officials and public employees is higher than the average minimum salary of enterprises across regions.
- By 2030, the lowest salary for officials and public employees is equal to or higher than the minimum salary of the highest region of enterprises.
Thus, according to the guiding principles in Resolution 27/NQ-TW 2018 mentioned above, the lowest salary for officials and public employees under the salary reform is as follows:
The salary reform roadmap is implemented step-by-step. Initially, it is expected that from 2021, the lowest salary for officials and public employees will be equal to the average minimum salary of enterprises across regions. However, due to the impact of the Covid-19 pandemic, the salary reform has been delayed and postponed to the present time.
According to Resolution 27/NQ-TW 2018, the salary level will be periodically adjusted in accordance with the consumer price index, economic growth rate, and the state budget's capacity.
If the salary reform roadmap of Resolution 27/NQ-TW 2018 continues to be implemented as scheduled, then in 2024, the lowest salary for officials and public employees could be higher than the average minimum salary of enterprises across regions.
The reason is that following the above roadmap, in 2021, the lowest salary for officials and public employees will be equal to the average minimum salary of enterprises across regions. This will be coupled with periodic adjustments to the salary level in accordance with the consumer price index, economic growth rate, and the state budget's capacity.
Additionally, when implementing the 2024 salary reform, the new salary level for officials and public employees will not be lower than the current salary level.
By 2025, the lowest salary for officials and public employees will be higher than the average minimum salary of enterprises across regions.
The ultimate goal is that by 2030, the lowest salary for officials and public employees must be equal to or higher than the minimum salary of the highest region of enterprises.
What are the Guiding Principles for Salary Reform?
In Resolution 27-NQ/TW 2018 the guiding principles for salary reform are mentioned as follows:
- The salary policy is a particularly important policy within the social-economic policy system. Salaries must genuinely be the main source of income ensuring the livelihood of the laborer and their family; appropriate salaries are an investment in the development of human resources, creating motivation to enhance labor productivity and work efficiency, contributing significantly to the achievement of social progress and justice, maintaining political and social stability, fostering improved growth quality, and promoting sustainable development.
- The reform of the salary policy must ensure a comprehensive, systematic, synchronous approach, inheriting and promoting strengths while effectively addressing the limitations and inadequacies of the current salary policy; comply with the principle of distribution according to labor and the objective rules of the market economy, taking labor productivity increase as the basis for salary increase; meet international integration requirements; and be appropriate to the economic and social development conditions and the country’s resources.
- In the public sector, the State pays salaries to officials and public employees and the armed forces based on job position, title, and leadership position, suitable to the State's resources and public service revenue, ensuring a reasonable correlation with the labor market’s salaries; implementing appropriate reward and incentive policies based on labor productivity, creating motivation to enhance work quality, efficiency, public service ethics, and professional ethics, contributing to the transparency and improvement of the effectiveness of the political system's operations.
- In the enterprise sector, salaries reflect the labor's value, formed based on the mutual agreement between the laborer and the employer under market mechanisms with State management. The State stipulates the minimum wage as the lowest threshold to protect vulnerable workers and as a basis for negotiating salaries and regulating the labor market. Salary distribution is based on production and business efficiency, ensuring a harmonious, stable, and progressive labor relationship within enterprises.
- Salary policy reform is an objective requirement, an important task demanding high political determination in building a socialist rule of law state and perfecting a socialist-oriented market economy institution; promoting administrative reform; innovating, structuring a streamlined political system apparatus, operating effectively and efficiently, streamlining the payroll; renovating the organizational and management system, enhancing quality, and efficiency of public service providers’ activities.
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