Roadmap for Salary Increases for Official Public Employees According to Resolution 27 and Resolution 104: How Will It Be Done?
Specific Roadmap for Increasing Official Salaries According to Resolution 27 and Resolution 104
Based on Resolution 104/2023/QH15 (effective from December 25, 2023) recently approved by the National Assembly at the 6th session of the 15th National Assembly.
Article 3 of Resolution 104/2023/QH15 clearly outlines the specific roadmap for wage reform in 2024 as follows:
Regarding the implementation of wage policy
1. From July 1, 2024, a comprehensive reform of the wage policy will be implemented according to Resolution 27-NQ/TW dated May 21, 2018, of the 7th Central Conference of the 12th Central Committee (the financial source for wage reform is ensured from the accumulated wage reform fund of the central budget, local budgets, and a part allocated in the state budget expenditure estimates); adjusting pensions, social insurance benefits, monthly allowances, preferential subsidies for people with meritorious services, and some social security policies linked with the statutory pay rate.
2. For central government agencies and units implementing special financial management and income mechanisms:
a) From January 1, 2024, to June 30, 2024: Monthly salary and additional income calculated according to the statutory pay rate of 1.8 million VND/month under the special mechanism ensure that they do not exceed the salary and additional income received in December 2023 (excluding salary and additional income due to adjusted wage coefficients upon promotion in 2024). If the calculation under this principle results in a lower salary and additional income in 2024 under the special mechanism compared to the general regulation, then only the general wage policy is implemented to ensure the rights of workers.
b) From July 1, 2024: Abolish all special financial management and income mechanisms of government agencies; apply uniform salary, allowance, and income policies. The current special mechanism for regular expenses (such as operating expenditures, capacity enhancement, modernization, ensuring professional activities, etc.) of government agencies is not continued. The Government of Vietnam is assigned to organize the implementation and report to the National Assembly at the 8th session.
3. Ministries, central agencies, and localities continue to implement solutions to create a source of wage policy reform accordingly. It allows the continued exclusion of some revenues when calculating the increased local budget revenues earmarked for wage reform as stipulated in Clause 2, Article 3 of Resolution 34/2021/QH15 dated November 13, 2021, of the National Assembly.
Therefore, the wage reform roadmap in 2024 is as follows:
- From January 1, 2024, to June 30, 2024: Calculated according to the statutory pay rate of 1.8 million VND/month.- From July 1, 2024: Comprehensive wage policy reform according to Resolution 27-NQ/TW of 2018, abolishing the statutory pay rate, adjusting pensions, social insurance benefits, monthly allowances, preferential subsidies for people with meritorious services, and some social security policies linked with the statutory pay rate.
Wage increase roadmap for officials and public employees according to Resolution 27 and Resolution 104
Has the Salary Scale for Officials and Public Employees Without Leadership Positions Been Issued From July 1, 2024, Following Wage Reform?
According to Resolution 104/2023/QH15, from July 1, 2024, the comprehensive wage policy reform will be implemented according to Resolution 27-NQ/TW of 2018.
As per the essence of Resolution 27-NQ/TW of 2018, during the wage reform, officials and public employees will be structured into two new salary scales based on job positions, titles, and leadership positions, replacing the current salary system; transitioning old salaries to new salaries, ensuring they are not lower than the current salaries.
However, as of now, there is no official document detailing the specific new salary scale applicable to officials and public employees without leadership positions when the wage reforms from July 1, 2024, are implemented.
On the other hand, Resolution 27-NQ/TW of 2018 clearly stipulates the principle of building a salary scale for officials and public employees without leadership positions as follows:
The professional and occupational salary scale according to the official rank and occupational title of the public employee applies commonly to officials and public employees without leadership titles.- Each official rank and occupational title of the public employee has multiple salary steps based on the principle: The same complexity level of work will have the same salary level; for higher than normal working conditions and occupational incentives, the policy will apply professional allowances; rearrange the group of ranks and the number of steps in the ranks of officials and the occupational title of public employees, encouraging officials and public employees to enhance their professional and occupational skills.- Appointment to the official ranks or occupational titles of public employees must be associated with job positions and the official rank structure or occupational title of public employees managed by the agency, organization, or unit managing officials and public employees.
Can the Salary of Officials and Public Employees Without Leadership Positions Exceed the Current Salary of Ministers After the Wage Reform From July 1, 2024?
According to Section 2 of the Salary Scale for state leadership officials issued under Resolution 730/2004/NQ-UBTVQH11.
Currently, the salary coefficient of ministers has two levels: 9.70 and 10.30.
According to Article 3 of Circular 10/2023/TT-BNV, the salary of ministers is calculated as follows:
| Actual Salary = Statutory Pay Rate x Current Salary Coefficient || --- |
Therefore, according to Article 3 of Circular 10/2023/TT-BNV, currently, ministers receive a salary ranging from 17,460,000 VND/month to 18,540,000 VND/month (excluding other allowances).
Concerning whether the salary of officials and public employees without leadership positions after the wage reform from July 1, 2024, can exceed the current salary of ministers:
According to information from the Ministry of Internal Affairs and the National Assembly through Resolution 104/2023/QH15 on the state budget estimate for 2024.
Notably, the new wage policy extends the wage relationship from the current 1 - 2.34 - 10 to 1 - 2.68 - 12.
The minimum salary for officials and public employees will significantly increase compared to the starting salary of 3.5 million VND for officials and public employees with intermediate qualifications, with a current salary coefficient of 1.86.
The average salary for officials and public employees will also increase from a starting coefficient of 2.34 to 2.68. Currently, officials and public employees with university degrees have a starting salary of more than 4.2 million VND/month.
The highest salary for officials and public employees corresponding to the 3rd level of senior specialists (equivalent to a minister's salary) has also been increased from a coefficient of 10 to 12. Therefore, the highest new salary for officials and public employees is projected to exceed the current figure of 18 million VND.
Apart from this basic salary, the new wage policy also rearranges the types of allowances to account for a maximum of 30% of the total wage fund (with some cases higher or lower than 30%) and 10% bonuses.
Additionally, according to the essence of Resolution 27-NQ/TW of 2018, during wage reform, both officials with and without leadership positions will apply the wage scale according to job positions and the new wage structure, including: Basic salary (accounting for about 70% of the total wage fund) and various allowances (accounting for about 30% of the total wage fund). Bonuses (the bonus fund is about 10% of the total annual wage fund, excluding allowances) will be added.
Thus, considering the basic salary, allowances, and bonuses, the average salary of officials and public employees after the wage reform may increase by more than 32% compared to the average income of salaried workers (7.5 million VND/month). Among these, the highest salary of officials and public employees corresponding to the 3rd level of senior specialists (equivalent to a minister's salary) is projected to greatly exceed the current figure of 18 million VND.
If officials and public employees without leadership positions fall under this corresponding salary calculation, their post-reform salary could indeed surpass the current salary of ministers.
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