Implementation Time for 2024 Salary Reform According to Resolution 27/NQ-TW of 2018: When Is It? What Are the Objectives and Roadmap for Salary Reform?
When is the implementation time for the 2024 wage reform according to Resolution 27/NQ-TW 2018?
On the afternoon of September 19, 2023, in his closing statement at the 2023 Vietnam Socio-Economic Forum, National Assembly Chairman Vuong Dinh Hue emphasized that the forum had dedicated substantial time to not only immediate socio-economic issues but also to addressing larger problems.
Notably, the National Assembly Chairman also stressed the early implementation of a comprehensive wage policy reform in 2024. This will serve as a significant boost for the labor market and contribute to stimulating domestic consumption.
"This is a reform, not a regular salary increase. If there are no changes, we can start applying it from July 1, 2024."
Therefore, the 2024 wage reform is expected to begin on July 1, 2024.
When is the implementation time for the 2024 wage reform according to Resolution 27/NQ-TW 2018? What is the target schedule for wage reform? (Image from the Internet)
What is the target schedule for wage reform to 2030 according to Resolution 27/NQ-TW 2018?
Based on Resolution 27-NQ/TW 2018, concerning wage policy reform for officials, public employees, armed forces, and laborers in enterprises.
The target schedule for wage reform to 2030 is specified under Section 2.2, Subsection 2, Section II of Resolution 27-NQ/TW 2018.
To be specific:
Specified Targets
(1) From 2018 to 2020
a) For the public sector
- Continue to adjust the statutory pay rate according to the National Assembly resolution, ensuring it is not lower than the consumer price index and in line with the economic growth rate; no new professional allowances will be added.
- Complete the development and issuance of new salary policies in line with wage policy reform, linked to administrative reform, staff streamlining; and reorganization of the political system in accordance with Central resolutions.
b) For the enterprise sector
- Adjust and increase regional minimum wages appropriate to the socio-economic development situation and the paying capacity of enterprises so that by 2020 the minimum wage ensures the minimum living standards of laborers and their families.
- Pilot labor, wage management for state-owned enterprises following the content of the approved wage policy reform scheme.
(2) From 2021 to 2025 with a vision to 2030
a) For the public sector
- From 2021, apply new unified wage policies for officials and public employees, and armed forces across the entire political system.
- In 2021, the lowest salary for officials and public employees is equal to the average lowest wage in different regions of the enterprise sector.
- Periodically adjust wages in line with the consumer price index, economic growth rate, and state budget capacity.
- By 2025, the lowest salary for officials and public employees is higher than the average lowest wage in different regions of the enterprise sector.
- By 2030, the lowest salary for officials and public employees is equal to or higher than the lowest wage in the highest region of the enterprise sector.
b) For the enterprise sector
- From 2021, the State periodically adjusts the regional minimum wage based on the recommendations of the National Wage Council. Enterprises are to implement wage policies based on negotiations between employers, employees, and their representatives; the State will not directly intervene in enterprise wage policies.
- Manage labor and wages in state-owned enterprises by cost-based wage contracting linked to business tasks until 2025, and towards business task contracting by 2030.
The target schedule for wage reform to 2030 will be implemented as outlined above.
However, in the past two years, our country has been severely impacted by the COVID-19 pandemic. At the 4th Session of the 15th National Assembly, it was clearly stated that comprehensive wage policy reform under Resolution 27-NQ/TW 2018 has not yet been implemented.
It is projected that the implementation of the reform policies will begin in 2024.
What is the State's guiding stance on wage reform?
Based on Section II of Resolution 27-NQ/TW 2018, as follows:
GUIDING STANCE, OBJECTIVES, AND REFORM CONTENT
1. Guiding stance
1.1. Wage policy is a particularly important aspect of the socio-economic policy system. Wages must truly be the main source of income guaranteeing the livelihood of workers and their families; correct payment of wages is an investment in human resource development, creating incentives to improve productivity and work efficiency, contributing significantly to social progress and fairness, ensuring political and social stability; promoting and enhancing growth quality and sustainable development.
1.2. Wage policy reform must ensure comprehensiveness, systematization, synchronization, inheritance, and promotion of advantages, effectively addressing the limitations and inadequacies of the current wage policy; adhere to labor distribution principles and the objective laws of the market economy, taking labor productivity growth as the basis for wage increases; meet the requirements of international integration; and have a roadmap compatible with the socio-economic development conditions and resources of the country.
1.3. In the public sector, the State pays wages to officials, public employees, and armed forces based on job positions, titles, and leadership roles, in line with state resources and public service revenue, ensuring reasonable correlation with market wages; implementing appropriate reward policies according to labor productivity, creating motivation for improving work quality and efficacy, public service ethics, and professional ethics, contributing to the purification and enhancement of the operational effectiveness of the political system.
1.4. In the enterprise sector, wages represent the market price of labor, formed through negotiation between laborers and employers under the market mechanism managed by the State. The State stipulates the minimum wage as the lowest floor to protect vulnerable workers and as one of the bases for wage negotiation and labor market regulation. Wage distribution is based on labor results and business efficiency, ensuring a harmonious, stable, and progressive labor relationship in enterprises.
1.5. Wage policy reform is an objective requirement and an important task, demanding high political determination in building a socialist rule-of-law State and perfecting the socialist-oriented market economy; promoting administrative reform; reorganizing the political system for streamlined, effective, and efficient operations, streamlining staff; reforming the organization and management system, enhancing the quality and effectiveness of public service providers.
Thus, in wage reform, the State has expressed its guiding stance as outlined above.
The reform of wage policy must ensure comprehensiveness, systematization, synchronization, inheritance, and promotion of its advantages while effectively overcoming the limitations and inadequacies of the current wage policy.
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