The 2024 salary reform in Vietnam under the Resolution 27: Who is eligible for pension compensation?
- The 2024 salary reform in Vietnam under the Resolution 27: Who is eligible for pension compensation?
- Who will receive a higher salary increase than the general level after the salary reform in Vietnam in 2024 under the Resolution 27?
- From July 2024: Which allowances will no longer be included in the officials' salary after the salary reform in Vietnam?
The 2024 salary reform in Vietnam under the Resolution 27: Who is eligible for pension compensation?
On November 10, 2023, the National Assembly passed Resolution 104/2023/QH15 on the state budget estimate for 2024.
In terms of salary policy implementation, the National Assembly resolved that starting from July 1, 2024, a comprehensive reform of salary policy will be implemented in accordance with Resolution 27-NQ/TW 2018 of the 7th Central Executive Committee of the 12th term; adjusting pensions, social insurance benefits, monthly allowances, preferential benefits for those who have made contributions, and some social security policies linked to basic salaries.
At the 31st session, on the afternoon of March 15, the Standing Committee of the National Assembly provided opinions on explaining, absorbing, and revising the draft Law on Social Insurance (amended).
At the session, Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung stated that the sector is currently tasked with studying and addressing 04 issues related to salary policy reform.
One issue of concern is the pension increase. Minister Dao Ngoc Dung reported that, after considering the opinions of the Central Steering Committee for salary reform, the Ministry has developed a plan to adjust pensions, dividing them into 03 groups.
The first group consists of regular retirees. For this group, the pension increase will be reasonably calculated based on the working area in relation to retirees, ensuring harmony between those who held the same position before and after July 1, 2024...
"Our viewpoint is that the pension adjustment should not be less than 50% of the salary increase after the reform to ensure harmony and balance, and to prevent retirees from being further disadvantaged by the salary reform," emphasized the Minister.
For the group of retirees before July 1, 2024, the state needs to apply compensation measures to reduce the salary gap between retirees before and after the salary policy reform.
In addition to applying social insurance policies, individuals receiving salaries from the budget when retiring will be ensured with full benefits like regular retirees.
Thirdly, for the group of retirees before 1995, the Minister stated that there will be special policies to further increase pensions.
"For this group, we will propose to the Politburo and relevant authorities to apply special policies," said Minister Dao Ngoc Dung.
Therefore, according to the statement of the Minister of Labor, Invalids and Social Affairs, the state needs to apply compensation measures to reduce the salary gap between retirees before and after the implementation of the salary policy reform (July 1, 2024) for retirees before the reform.
The 2024 salary reform in Vietnam under the Resolution 27: Who is eligible for pension compensation?
Who will receive a higher salary increase than the general level after the salary reform in Vietnam in 2024 under the Resolution 27?
Pursuant to Resolution 104/2023/QH15 on the state budget estimate for 2024, starting from July 1, 2024, comprehensive salary policy reforms will be implemented according to Resolution 27-NQ/TW 2018.
Quoting from the Government's electronic portal, the Minister of Home Affairs stated that a notable point when implementing the salary reform is that the salaries of public employees, especially those in the education and healthcare sectors, will be higher than the general level of other officials and public employees.
This is because we are implementing salary policy reforms in line with the resolution on comprehensive development of education, training, and healthcare. The recent COVID-19 pandemic has shown the need to pay more attention to improving the lives of teachers and doctors.
Therefore, during the salary reform, the Ministry of Home Affairs will coordinate with the Ministry of Education and Training and the Ministry of Health to propose appropriate adjustments and support to ensure that the salaries (including allowances) of teachers and doctors are increased in accordance with their job requirements and positions, while ensuring the overall salary level for officials and public employees and providing incentives for these two sectors.
Therefore, when implementing the salary reform in 2024, the two groups that will receive higher salary increases than the general level, according to the Minister of Home Affairs, are public employees in the healthcare and education sectors. The Ministry of Home Affairs will coordinate with the Ministry of Health to propose appropriate adjustments and support to ensure that the salaries (including allowances) of healthcare public employees (doctors, etc.) are increased in line with their job requirements and positions, while ensuring the overall salary level for officials and public employees and providing incentives for these two sectors.
Source: Government's electronic portal
From July 2024: Which allowances will no longer be included in the officials' salary after the salary reform in Vietnam?
Pursuant to Resolution 27-NQ/TW 2018, when implementing the salary reform in 2024, the following allowances will no longer be included in the officials' salary based on their positions:
+ Seniority allowance;
+ Leadership position allowance (as the salary for leadership positions in the political system will be determined separately);
+ Party and socio-political organization work allowance;
+ Official duty allowance (as it has been incorporated into the base pay);
+ Hazardous and dangerous allowance (as the conditions for hazardous and dangerous work have been included in the occupational allowance).
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