Resolution 27: When will the new payrolls be applied leading public employees under the salary reform in Vietnam?
- Resolution 27: When will the new payrolls be applied leading public employees under the salary reform in Vietnam?
- How much will the salary of public employees increase during the salary reform in Vietnam in 2024?
- Will the latest 2024 payrolls for public employees still apply the statutory pay rate in Vietnam?
Resolution 27: When will the new payrolls be applied leading public employees under the salary reform in Vietnam?
The National Assembly has conducted a vote to approve the State budget estimate for 2024 on the morning of November 10. The Resolution states that, starting from July 1, 2024, comprehensive salary policy reforms will be implemented in accordance with Resolution 27-NQ/TW in 2018.
Pursuant to Resolution 27-NQ/TW in 2018, a unified system of new payrolls based on job titles and leadership positions will be established to replace the current payroll system. The transition from the old salary structure to the new one will be carried out, ensuring that the new salary is not lower than the current salary enjoyed. Specifically:
Payroll for officials, public employees holding leadership positions (elected and appointed) in the political system from the central level to the commune level will be developed based on the following principles:
(1) The salary level of a leadership position must reflect the hierarchy in the political system. Those holding a leadership position will receive a salary corresponding to that position. If a person holds multiple positions, they will receive the highest salary corresponding to the highest position. If two leadership positions are considered equivalent, they will receive the same salary level. The salary level of a higher-level leader must be higher than that of a lower-level leader.
(2) A salary level will be determined for each equivalent position. When developing payrolls for central-level leadership positions, there will be no classification based on ministries, sectors, departments, committees, and equivalent units. Different salary levels will not be distinguished for the same leadership position based on the classification of local administrative units, but will be implemented through allowances. The classification of equivalent leadership positions in the political system for designing payrolls will be decided by the Politburo after reporting to the Central Executive Committee.
Therefore, according to the spirit of the 2024 salary reform, from July 1, 2024, comprehensive salary policy reforms will be implemented according to Resolution 27-NQ/TW in 2018. Thus, the new payrolls of the 2024 salary reform, according to Resolution 27, may be applied from July 1, 2024, for leading public employees.
Resolution 27: When will the new payrolls be applied leading public employees under the salary reform in Vietnam?
How much will the salary of public employees increase during the salary reform in Vietnam in 2024?
According to the Government's official electronic portal, the Minister of Home Affairs stated that, according to the salary reform plan, starting from July 1, it is expected that the average salary of officials and public employees will increase by about 30% (including base pay and allowances).
Another notable point is that from 2025, the Government will continue to adjust the salary levels in the payrolls to increase by an average of about 7% per year. This means that after implementing the salary reform with new payrolls and increased salaries compared to the current system, officials and public employees will still receive an additional 7% salary increase each year.
Therefore, with the implementation of the 2024 salary reform, the average salary of officials and public employees is expected to increase by about 30% (including base pay and allowances). From 2025 onwards, the Government will continue to adjust the salary levels in the payrolls to increase by an average of about 7% per year. This means that after the salary reform with new payrolls and increased salaries compared to the current system, public employees will still receive an additional 7% salary increase each year.
Source: Government's official electronic portal
Will the latest 2024 payrolls for public employees still apply the statutory pay rate in Vietnam?
Pursuant to Resolution 27-NQ/TW in 2018, specific factors have been agreed upon to formulation of the new payrolls, as follows:
II- DIRECTIVES, OBJECTIVES, AND CONTENT OF REFORM
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3. Content of the reform
3.1. For officials, public employees, and armed forces (public sector)
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c) Determining specific factors to design the new payrolls
- Annuling the current statutory pay rate and salary coefficients, and establishing a base pay amount in the new payrolls.
- Implementing the unified employment contract regime as prescribed by the Labor Law (or service provision contract) for individuals performing surplus or service jobs (requiring training below intermediate level), and not applying the officials and public employees payrolls to these individuals.
- Determining the minimum salary level for officials and public employees in the public sector as the salary level of individuals performing jobs requiring intermediate level training (level 1), not lower than the minimum salary level for trained labor in the business sector.
- Expanding the wage relationship as a basis for determining specific salary levels in the payroll system, gradually approaching the wage relationship in the business sector that is suitable for the state's resources.
- Improving the system of regular salary increments and early salary increments for officials, public employees, and armed forces in accordance with the provisions of the new payrolls.
...
Therefore, according to the guidance in Resolution 27-NQ/TW in 2018, the latest 2024 payrolls for public employees will no longer apply the statutory pay rate and salary coefficients as currently in place. Instead, a base pay amount will be established in the new payrolls.
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