From July 1, 2024, will the new salary tables for officials and public employees increase any additional income when implementing salary reform?
2 New Salary Tables for Officials and Public Employees from July 1, 2024, Will Increase Income by Which Amount?
According to Resolution 104/2023/QH15, the comprehensive reform of wage policy will be implemented in accordance with Resolution 27-NQ/TW 2018.
In line with the principles outlined in Resolution 27-NQ/TW 2018, the planned wage structure reform for officials and public employees includes the following elements:
Reform Content
3.1. For officials and public employees and armed forces (public sector)
a) Design a new wage structure consisting of: Basic salary (accounting for about 70% of the total wage fund) and allowances (accounting for about 30% of the total wage fund). Add bonuses (bonus fund is about 10% of the total annual wage fund, excluding allowances).
From July 1, 2024, upon implementing the wage reform, the new salary table for officials and public employees will be designed as follows:
Salary = Basic Salary + Allowances (if any) + Bonuses (if any)
The proportions within the wage structure for officials, public employees, and armed forces are as follows:
- Basic Salary (accounting for about 70% of the total wage fund)- Allowances (accounting for about 30% of the total wage fund)- Additional Bonuses (bonus fund is about 10% of the total annual wage fund, excluding allowances)
Thus, based on the above content, besides the current income from salary and allowances, after the wage reform from July 1, 2024, officials and public employees and armed forces will likely receive additional income from bonuses (bonus fund about 10% of the total annual wage fund, excluding allowances) according to the 2 new salary tables for officials and public employees as per Resolution 27-NQ/TW 2018.
From July 1, 2024, 2 new salary tables for officials and public employees will increase by how much when implementing wage reform?
How Will the New 2024 Salary Table for Officials and Public Employees Be Under Resolution 27?
According to the principles of Resolution 27-NQ/TW 2018, the wage reform will result in the development of 2 salary tables for officials and public employees based on job position, title, and leadership role to replace the current salary system; transition old wages to new ones ensuring they are not lower than current wages, including:
- Developing one wage table for leadership positions applicable to elected and appointed officials and public employees in the political system from central to communal levels, based on principles such as:
+ Leadership salary levels must reflect hierarchy within the political system; holding a leadership position entitles one to a salary according to that position, if one holds multiple titles, they receive the highest salary of those titles; equivalent leadership positions receive the same salary; leadership salaries at higher levels must be higher than those at lower levels.
+ A uniform leadership salary for each equivalent leadership role; ministries, central agencies, committees, and equivalents at the central level will not have differentiated leadership salaries based on their classification; administrative unit classification will not affect leadership salaries at local levels, which will be treated via allowance policies. Leadership position classification within the political system for developing the salary table will be decided by the Politburo after reporting to the Central Executive Committee.
- Developing one professional wage table according to the rank of officials and the professional title of public employees, applicable to officials and public employees not holding leadership titles; each rank will have multiple wage levels based on principles such as:
+ Similar work complexity means similar wages; higher or more specialized working conditions and professional incentives will be handled via allowance policies; restructuring of rank groups and the number of wage levels to encourage officials and public employees to enhance their professional qualifications.
+ Appointment to officer ranks or public employee professional titles must align with job positions and the structure managed by agencies, organizations, and units handling officials and public employees.
On What Factors Are the 2 New Salary Tables for Officials and Public Employees from July 1, 2024, Built?
Following the principles of Resolution 27-NQ/TW 2018, the design and development of 2 new salary tables for officials and public employees based on job positions will consider factors such as:
- Abolishing the statutory pay rate and current salary coefficients, creating a basic salary quantified specifically in the new salary table.
- Uniformly implementing labor contract policies as per the Labor Code (or service provision contracts) for those performing auxiliary duties (requiring sub-secondary education), excluding this group from officials and public employees' salary tables.
- Defining the lowest salary level for officials and public employees in the public sector as the salary level for job positions requiring secondary education (level 1), which should not be lower than the minimum wage for trained labor in the business sector.
- Expanding the salary relationships to base specific salary levels within the new salary system, gradually aligning with salary relationships in the business sector according to the State's resources.
- Improving policies for regular salary increases and pre-term salary increases for officials, public employees, and armed forces following the new salary table's regulations.
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