From July 1, 2024, will the salary of officials and public employees increase by an average of 2.4 million after the 2024 salary reform in Vietnam?
- From July 1, 2024, will the salary of officials and public employees increase by an average of 2.4 million after the 2024 salary reform in Vietnam?
- From July 1, 2024: What are 02 payrolls applicable to officials and public employees after salary reform in Vietnam?
- Will the payrolls applicable to officials and public employees be issued in May 2024 after the salary reform in Vietnam?
From July 1, 2024, will the salary of officials and public employees increase by an average of 2.4 million after the 2024 salary reform in Vietnam?
Pursuant to Resolution 104/2023/QH15, comprehensive salary policy reforms will be implemented according to Resolution 27-NQ/TW in 2018 from July 1, 2024.
Pursuant to Resolution 27-NQ/TW in 2018, when implementing the salary reform, officials and public employees will have 02 new payroll systems based on job positions, titles, and leadership positions, replacing the current payroll system. The old salary arrangement will be changed to a new one, ensuring that it is not lower than the current salary.
The minimum salary level for officials and public employees in the public sector is determined to be the salary level of individuals with vocational training (grade 1) which should not be lower than the minimum salary level of trained workers in the business sector.
In addition, the new salary policy also expands the salary ratios from 1 - 2.34 - 10 currently to 1 - 2.68 - 12.
Therefore, the minimum salary level for officials and public employees will increase significantly compared to the current starting salary of 3.5 million dong for officials and public employees with vocational training and a current salary coefficient of 1.86.
The average salary level for officials and public employees will also have an increased starting coefficient from 2.34 to 2.68. Currently, officials and public employees with a university degree have a starting salary of over 4.2 million dong per month.
The highest salary level for officials and public employees, corresponding to level 3 of senior experts (ministerial payrolls), will also be expanded from a coefficient of 10 to 12. Therefore, the expected highest new salary level for officials and public employees will surpass the current 18 million dong.
In addition to the base pay, the new salary regime will also rearrange various allowances, which can account for a maximum of 30% of the total salary fund (with cases higher or lower than 30%) and 10% in bonuses.
Therefore, if we consider the base pay, allowances, and bonuses, the average salary for officials and public employees after implementing the salary reform will increase by more than 32% compared to the average income of workers who receive salaries (7.5 million dong per month).
Currently, there are 134,284 officials in state administrative agencies who are applying financial mechanisms and special income policies (receiving additional salaries ranging from 0.66 to 2.43 times the general regime). This number accounts for about 6.78% of the total official and public employee workforce in the country.
When abolishing the mechanisms and policies regarding salaries and special income, they will receive the new salary (including allowances) which may be lower than before salary reform. Therefore, to ensure their regime, the Ministry of Home Affairs will calculate and propose to the competent authority to consider preserving the current salary and special income levels.
In other words, the new (including preserved) salary of these officials and public employees should not be lower than before implementing the salary reform, in accordance with the spirit of Resolution 27, ensuring fairness between the beneficiaries before and after the salary reform.
Therefore, from July 1, 2024, when implementing the salary reform, it is expected that the average salary for officials and public employees will increase by more than 2.4 million dong compared to the average income of workers who receive salaries (7.5 million dong per month).
The 134,284 officials and public employees in state administrative agencies who are applying financial mechanisms and special income policies have been calculated by the Ministry of Home Affairs to propose preserving the current salary and special income levels. Therefore, it is expected that these individuals will not receive a salary increase but will have their current salary levels preserved.
Source: Government Electronic Information Portal
From July 1, 2024, will the salary of officials and public employees increase by an average of 2.4 million after the 2024 salary reform in Vietnam?
From July 1, 2024: What are 02 payrolls applicable to officials and public employees after salary reform in Vietnam?
Pursuant to the Resolution 27-NQ/TW in 2018, there will be 2 new payrolls applicable to officials and public employees as follows:
- 01 payroll for leadership positions applicable to officials and public employees holding leadership positions (elected and appointed) in the political system from central to commune level, based on the following principles:
+ The salary level for leadership positions must reflect the hierarchy in the political system; individuals holding a leadership position will receive a salary according to that position. If a person holds multiple positions, they will receive the highest salary level for those positions. If individuals hold equivalent leadership positions, they will receive the same salary level. The salary level for higher-level leaders must be higher than that of lower-level leaders.
+ A specific salary level will be determined for each type of equivalent leadership position; there will be no classification by ministries, sectors, departments, committees, and equivalent units at the central level when designing the payroll for leadership positions at the central level. There will be no differentiation in salary levels for the same leadership title based on the classification of administrative units at the local level, which will be implemented through allowances. The classification of equivalent leadership positions in the political system for payroll design will be decided by the Politburo after reporting to the Central Executive Committee.
- 01 professional payroll based on officials' ranks and public employees' professional titles applicable to officials and public employees who do not hold leadership positions; each officials' rank and public employees' professional title will have multiple salary levels based on the following principles:
+ Individuals with the same level of job complexity will receive the same salary level; higher labor conditions and professional benefits will be provided through professional allowances. The classification of job groups and salary levels within officials' ranks and public employees' professional titles will be rearranged, encouraging officials and public employees to enhance their professional qualifications.
+ Appointment to officials' ranks or public employees' professional titles must be tied to job positions and the structure of officials' ranks and public employees' professional titles will be implemented by the managing agencies and organizations.
Although the official payrolls for job positions have not been officially announced for the salary reform starting from July 1, 2024, the principles outlined in Resolution 27-NQ/TW in 2018 provide an understanding of how the new payrolls will be structured for officials and public employees.
Will the payrolls applicable to officials and public employees be issued in May 2024 after the salary reform in Vietnam?
Pursuant to Appendix IV, specific tasks for sectors and fields in 2024 (accompanying Resolution 01/NQ-CP 2024), the Government has assigned the Ministry of Home Affairs to lead the implementation and complete a new decree on salary regimes for officials, public employees, and armed forces in May 2024.
Therefore, it is expected that a new decree regulating the salary regimes for officials and public employees during the salary reform will be issued in May 2024. This new decree is likely to replace Decree 204/2004/ND-CP. In this case, the payrolls applicable to officials and public employees in 2024 under the salary reform will be issued along with the new decree in May 2024.
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