07:50 | 23/07/2024

A 30% Salary Increase for 9 Categories in 5 New Salary Scales Based on Job Position Effective from July 1, 2024. Is It Correct?

Increasing salary by 30% for 9 categories in 5 new salary scales based on job positions from July 1, 2024, is correct, right? Inquiry from Mr. H.Q in Khanh Hoa.

Will 9 categories in 5 new salary tables based on job position get a 30% raise starting from July 1, 2024?

According to Resolution 104/2023/QH15, a comprehensive wage policy reform will be implemented according to Resolution 27-NQ/TW 2018 starting from July 1, 2024.

According to Resolution 27-NQ/TW 2018, the 5 salary tables based on job positions starting from July 1, 2024, when salary reform takes place include:

| 5 SALARY TABLES BASED ON JOB POSITION || --- || 1 Leadership salary table: applicable to officials and public employees holding leadership positions (elected and appointed) in the political system from the Central level to the commune level || 1 Professional, operational salary table according to the rank of official and professional title of public employees, generally applicable to officials and public employees who do not hold leadership positions || 1 Salary table for military officers, police officers, non-commissioned officers (based on position, title, and rank) || 1 Salary table for professional soldiers, technical police officers || 1 Salary table for defense workers, police workers |

The 9 categories that apply to the 5 new salary tables based on job positions include:

| 9 APPLICABLE CATEGORIES || --- || Officials and public employees holding leadership positions || Officials, public employees not holding leadership positions || Non-commissioned police officers || Police officers || Military officers || Professional soldiers || Technical police officers || Defense workers || Police workers |

Recently, the Minister of Home Affairs announced that according to the forthcoming salary reform plan from July 1, 2024, the average salary level for officials and public employees (including basic salary and allowances) is expected to increase by 30%.

From 2025 onwards, this salary level will continue to be adjusted to increase annually by approximately 7% per year on average.

Although in the past 3 years we have not implemented a salary reform, we have adjusted the statutory pay rate twice, increasing it by 29.5%. Thus, from 2021 (the intended implementation start of salary reform according to Resolution 27-NQ/TW 2018) to the upcoming July 1, salaries for officials and public employees have increased quite significantly, by approximately 60%. This figure, though not outstanding, is still a considerable increase compared to the average annual increase of 7% before the salary reform.

As mentioned above, from July 1, 2024, when the salary reform is implemented, the average salary level is expected to increase by 30% for officials and public employees.

As for the military and police (armed forces), the Ministry of Home Affairs has not specified the percentage of the salary increase. However, according to the spirit of Resolution 27-NQ/TW 2018, when the salary reform is implemented, it ensures that the new salary will not be lower than the current salary. Thus, the military and police are also expected to receive a salary increase.

From 2025 onward, these categories are expected to receive further annual salary adjustments of around 7% per year.

30% salary increase for 9 categories in 5 new salary tables based on job position from July 1, 2024, right?

30% salary increase for 9 categories in 5 new salary tables based on job position from July 1, 2024, right?

How are the 5 new salary tables based on job positions designed and constructed from July 1, 2024?

According to the spirit of Resolution 27-NQ/TW 2018, all 5 new salary tables based on job positions when the salary reform takes effect will be designed based on specific factors as follows:

- Abolish the statutory pay rate and current salary coefficient, building a basic salary level with specific amounts in the new salary tables.

- Implement unified labor contract policies under the provisions of the Labor Code (or service provision contracts) for those performing subordinate and supportive tasks (requiring educational level below intermediate level), not applying officials and public employees' salary tables to these subjects.

- Determine the minimum salary level for officials and public employees in the public sector as the salary level for those performing jobs requiring intermediate education level (level 1) not lower than the minimum salary level for trained workers in the enterprise sector.

- Expand the salary relationship as a basis for determining specific salary levels in the salary system, gradually approaching the salary relationship of the enterprise sector in line with the state's resources.

- Perfect the policies for regular salary increases and early salary increases for officials and public employees and armed forces in accordance with the new salary table regulations.

Also, according to the spirit of Resolution 27-NQ/TW 2018, the entire salary table based on job positions for officials and public employees and armed forces will be designed with a new salary structure including: Basic salary (accounting for about 70% of the total salary fund) and allowances (accounting for about 30% of the total salary fund). Add rewards (reward fund of about 10% of the annual total salary fund, excluding allowances).

After implementing the salary reform expected from July 1, 2024, the new salaries for officials and public employees, and armed forces will be designed according to the formula as follows:

| Salary = Basic salary + allowances (if any) + rewards (if any) || --- |

Who are the officials and public employees and armed forces?

- According to the provisions of Clause 1 Article 4 Law on Cadres and Civil Servants 2008, cadres are defined as Vietnamese citizens who are elected, approved, and appointed to hold positions and titles with a term in the agencies of the Communist Party of Vietnam, the State, politico-social organizations at the central level, at provincial level, city directly under the central level, at district level, district-level town, city under provincial level, within the payroll, and receive salary from the state budget.

- According to Clause 2 Article 4 Law on Cadres and Civil Servants 2008 amended by Clause 1 Article 1 Law Amending and Supplementing a Number of Articles of the Law on Cadres and Civil Servants and the Law on Public Employees 2019, civil servants are defined as Vietnamese citizens who are recruited, appointed to ranks, positions, and titles corresponding to job positions in agencies of the Communist Party of Vietnam, the State, politico-social organizations at the central level, provincial level, district level; in agencies, units of the People's Army that are not officers, professional soldiers, defense workers; in agencies, units of the People's Public Security that are not officers, non-commissioned officers serving according to professional policies, police workers, within the payroll, and receive salary from the state budget.

- According to Article 2 Law on Public Employees 2010, public employees are defined as Vietnamese citizens recruited according to job positions, working at public service providers under working contract policies, receiving salary from the salary fund of public service providers as prescribed by law.

- According to Article 23 Law on National Defense 2018, the components and tasks of the armed forces of the people are stipulated as follows:

Composition and tasks of the armed forces of the people

1. The armed forces of the people include the People's Army, the People's Public Security, and the Militia and Self-Defense Forces.

2. The armed forces of the people are absolutely loyal to the Homeland, the People, the Communist Party, and the State; tasked with readiness for combat, combat, service in combat, protection of independence, sovereignty, unity, and territorial integrity of the Homeland, national security, social order, and safety; protection of the People, the Communist Party, the State, socialist policies, and revolutionary achievements; and building the country with the entire people and fulfilling international obligations.

Thus, based on the above provisions, the People's Armed Forces of Vietnam include 3 forces: the People's Army, the People's Public Security, and the Militia and Self-Defense Forces.

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