7% Annual Salary Increase for School Medical Staff from 2025 Upon Implementation of the 2024 Wage Reform. Is this Correct?
Increasing 7% Annual Salary for School Medical Staff Starting in 2025 When Implementing the 2024 Salary Reform, Correct?
The Prime Minister of the Government of Vietnam stated that in 2025, the Government of Vietnam will implement a salary policy reform for the public sector according to Resolution 27-NQ/TW of 2018 of the Central Committee from July 1, 2024.
Simultaneously, the Government of Vietnam will also continue to adjust the regional minimum wage and salary policies for the business sector as stipulated.
From 2025 onwards, salaries will be adjusted on average by 7% per year for officials and public employees and armed forces until the minimum wage is equal to or higher than the minimum wage of region I in the business sector.
Thus, public school medical staff will continue to have their salaries adjusted on average by 7% per year until the minimum wage is equal to or higher than the minimum wage of region I in the business sector.
Increasing 7% Annual Salary for School Medical Staff Starting in 2025 When Implementing the 2024 Salary Reform, Correct?
How Will the Salary Table for School Medical Staff Look When Implementing the 2024 Salary Reform?
In sub-item 3.1, Section 3, Part II of Resolution 27-NQ/TW of 2018 on reforming salary policies for officials and public employees and armed forces (public sector), the new salary structure design includes:
- Basic salary (accounting for about 70% of the total salary budget).
- Allowances (accounting for about 30% of the total salary budget).
- Bonus (the bonus fund is about 10% of the total annual salary budget, excluding allowances).
The development and issuance of a new salary table system based on job positions, titles, and leadership roles will replace the current salary table system; transition from old to new salary arrangements, ensuring it is not lower than the current salary, and includes:
- Developing a professional and vocational salary table for officials and public employees' job titles, applicable to officials and public employees who do not hold leadership positions; each grade of officials and public employees' job title will have multiple salary steps based on the following principles:
For the same level of job complexity, the salary will be the same; for higher-than-normal working conditions and professional incentives, allowances will be applied; reorganizing the grades and number of salary steps within each grade of officials and public employees' job title, encouraging officials and public employees to enhance their professional expertise. Appointment to officials or public employees’ job titles must be linked to job positions and the structure of officials and public employees' job titles managed by agencies, organizations, and units.
The salary structure for school medical staff when implementing salary reform according to Resolution 27-NQ/TW of 2018 is as follows:
- Basic salary.
- Allowances (if any).
- Bonus (if any).
What Are the Guiding Principles for Salary Reform?
Resolution 27-NQ/TW of 2018 mentions the guiding principles for salary reform as follows:
- Salary policy is a particularly important policy in the economic-social policy system. The salary must be a genuine source of income to ensure the livelihood of workers and their families; properly paid salaries are an investment in human resource development, creating motivation for increasing labor productivity and work efficiency, significantly contributing to social progress and equity, ensuring political and social stability; promoting and enhancing the quality of growth and sustainable development.
- Salary policy reform must ensure comprehensiveness, systematic, synchronicity, inheriting and promoting advantages, effectively overcoming the limitations and inadequacies of the current salary policies; adhering to labor distribution principles and the objective laws of the market economy, basing salary increases on labor productivity; meeting international integration requirements; with a roadmap suitable for the economic-social development status and the country's resources.
- In the public sector, the state pays salaries to officials, public employees, and armed forces based on job positions, titles, and leadership positions, suitable to state resources and public service revenue, ensuring reasonable correlation with the labor market salary; implementing deserving remuneration and reward policies based on labor productivity, creating motivation to improve work quality and efficiency, public service ethics, and professional ethics, contributing to the purity and effectiveness of the political system.
- In the business sector, salary is the price of labor, formed based on agreement between workers and employers under the market mechanism regulated by the state. The state stipulates the minimum wage as the lowest floor to protect disadvantaged workers. It is also a basis for salary agreement and labor market regulation. Wage distribution is based on labor results and business production efficiency, ensuring harmonious, stable, and progressive labor relations within enterprises.
- Salary policy reform is an objective requirement and an important task, requiring high political determination in building a socialist rule-of-law state and perfecting the socialist-oriented market economy mechanism; promoting administrative reform; innovating and organizing the political system's apparatus streamlining, effective operation, and reducing personnel; innovating the organization and management system, improving the quality and efficiency of public service providers.
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