From July 1, 2024, will the new salary for official public employees be calculated based on the new statutory pay rate or the salary according to Resolution 27?
From July 1, 2024, will the new salary for official public employees be calculated according to the new statutory pay rate or Resolution 27?
Recently, the Government of Vietnam issued Decree 73/2024/ND-CP https://thuvienphapluat.vn/van-ban/Lao-dong-Tien-luong/Nghi-dinh-73-2024-ND-CP-muc-luong-co-so-che-do-tien-thuong-can-bo-cong-chuc-luc-luong-vu-trang-615447.aspx regarding the increase in the statutory pay rate to 2.34 million VND/month applied to calculate the new salary for official public employees.
Previously, the Central Executive Committee issued Conclusion 83-KL/TW in 2024 https://thuvienphapluat.vn/van-ban/Tai-chinh-nha-nuoc/Ket-luan-83-KL-TW-2024-cai-cach-tien-luong-dieu-chinh-luong-huu-nguoi-co-cong-614937.aspx on wage reform, the adjustment of pensions, social insurance benefits, preferential allowances for people with meritorious services, and social allowances starting from July 1, 2024.
The Politburo has concluded on the content of wage reform effective from July 1, 2024, according to Resolution 27-NQ/TW in 2018 for officials, public employees, and armed forces (public sector).
Specifically, the implementation of wage reform according to Resolution 27-NQ/TW in 2018 for officials, public employees, and the armed forces faces many difficulties, obstacles, and inadequacies. Thus, it requires thorough, comprehensive research and review. Furthermore, numerous regulations of the Communist Party and State laws need to be amended and supplemented to present to the Central Committee for consideration and adjustment of some contents of Resolution 27-NQ/TW in 2018 to fit the practical situation.
Given the above situation and based on Resolution 27-NQ/TW in 2018, the Politburo assigned the Party Personnel Committee of the Government of Vietnam to direct the Government of Vietnam to implement public sector wage reform in a phased, reasonable, cautious, and feasible manner. Specifically, the statutory pay rate will be adjusted from 1.8 million VND to 2.34 million VND (an increase of 30%) starting from July 1, 2024.
Simultaneously, the Politburo requires the Central Economic Committee to oversee reviewing the implementation of Resolution 27-NQ/TW in 2018, in cooperation with the Party Personnel Committee of the Ministry of Home Affairs and related ministries and central authorities, to evaluate the appropriateness, feasibility, and propose the implementation of 5 new salary scales and 9 new allowance policies for the public sector to be submitted to the Central Committee for consideration after 2026. This follows the issuance and implementation of the system of Job Position List in the political system by the Politburo.
Therefore, currently, the new salary for official public employees will apply the statutory pay rate of 2.34 million VND/month for salary calculation.
From July 1, 2024, will the new salary for official public employees be calculated according to the new statutory pay rate or Resolution 27?
How to calculate the new salary for official public employees from July 1, 2024, when the statutory pay rate is increased?
According to Article 3 of Circular 07/2024/TT-BNV https://thuvienphapluat.vn/van-ban/Lao-dong-Tien-luong/Thong-tu-07-2024-TT-BNV-huong-dan-muc-luong-co-so-doi-tuong-huong-luong-don-vi-cong-lap-616236.aspx?anchor=dieu_3 dated July 5, 2024, the salary calculation for officials, public employees, and workers specified in Clauses 1, 2, 3, 4, 5, 8, and 9 of Article 1 of Circular 07/2024/TT-BNV https://thuvienphapluat.vn/van-ban/Lao-dong-Tien-luong/Thong-tu-07-2024-TT-BNV-huong-dan-muc-luong-co-so-doi-tuong-huong-luong-don-vi-cong-lap-616236.aspx?anchor=dieu_1 is as follows:
Based on the current salary coefficient and allowances prescribed by competent authorities of the Communist Party and the State regarding wage policies for officials, public employees, and the armed forces, and the statutory pay rate stipulated in Decree 73/2024/ND-CP, the salary, allowances, and reserved differential coefficient (if any) are calculated as follows:
The formula for salary calculation is as follows:
Salary from July 1, 2024 = 2,340,000 VND/month x current salary coefficient
Example: If the current salary coefficient is 2.34, the salary from July 1, 2024, is calculated as follows:
Salary from July 1, 2024 = 2,340,000 VND/month x 2.34 = 5,475,600 VND/month
What purposes does the statutory pay rate serve?
According to Article 3 of Decree 73/2024/ND-CP https://thuvienphapluat.vn/van-ban/Lao-dong-Tien-luong/Nghi-dinh-73-2024-ND-CP-muc-luong-co-so-che-do-tien-thuong-can-bo-cong-chuc-luc-luong-vu-trang-615447.aspx?anchor=dieu_3, the statutory pay rate is used as a basis for:
Statutory Pay Rate
1. The statutory pay rate is used as a basis for:
a) Calculating the salary in the salary tables, allowances, and implementing other policies according to the law for subjects specified in Article 2 of this Decree;
b) Calculating operational and subsistence allowances as prescribed by the law;
c) Calculating deductions and policies enjoyed according to the statutory pay rate.
...
Thus, according to the provisions stated above, the statutory pay rate is used as a basis for:
- Calculating the salary in the salary tables, allowances, and implementing other policies according to the law for the following subjects:
+ Officials, from central to district levels, stipulated in Clauses 1 and 2, Article 4 of Law on Cadres and Civil Servants of 2008 (amended and supplemented by the Law amending and supplementing some articles of the Law on Cadres and Civil Servants and the Law on Public Employees of 2019);
+ Officials at the commune level stipulated in Clause 3, Article 4 of Law on Cadres and Civil Servants of 2008 (amended and supplemented by the Law amending and supplementing some articles of the Law on Cadres and Civil Servants and the Law on Public Employees of 2019);
+ Public employees in public service providers according to the Law on Public Employees of 2010 (amended and supplemented by the Law amending and supplementing some articles of the Law on Cadres and Civil Servants and the Law on Public Employees of 2019);
+ Persons working under labor policies as defined in Decree 111/2022/ND-CP, in cases where salaries are applied according to Decree 204/2004/ND-CP via labor contracts or agreement;
+ Persons working in staff positions at organizations receiving budget support from the state under Decree 45/2010/ND-CP (amended and supplemented by Decree 33/2012/ND-CP);
+ Officers, professional military personnel, workers, public employees in national defense, and contracted laborers in the People's Army of Vietnam;
+ Officers, salaried non-commissioned officers, workers, public employees in the Vietnam People's Public Security and contracted laborers;
+ Persons working in the cryptographic organizations;
+ Non-commissioned officers and soldiers in the People's Army of Vietnam; non-commissioned officers and conscripted soldiers in the People's Public Security;
+ Non-professional officials at the commune level, in villages, and residential groups.
- Calculating operational and subsistence allowances according to the law;
- Calculating deductions and policies enjoyed according to the statutory pay rate.
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