From July 01, 2024, which salary scale will officials and public employees apply when implementing wage reform?
What salary scale will officials and public employees apply from July 01, 2024?
The National Assembly passed the Resolution on the 2024 State Budget Estimates on November 10, 2023. Notably, the Resolution allocates Article 3 to the implementation of salary policies.
To be specific, the Resolution clearly states that from July 1, 2024, a comprehensive reform of salary policies will be implemented according to Resolution 27-NQ/TW in 2018 of the Seventh Plenary Session of the 12th Central Committee.
The funding source for the salary reform is ensured from the salary reform reserves of the Central Budget, the local budget, and a part allocated in the state budget balance projections.
At the same time, pension adjustments, social insurance allowances, monthly allowances, preferential allowances for meritorious people, and some social security policies will be linked to the statutory pay rate.
Thus, from July 01, 2024, the salary scales for officials and public employees will be applied as follows:
- A salary scale for positions applied to officials and public employees holding leadership positions (elected and appointed) in the political system from the Central to the commune level.
This salary scale is built on the principles:
The position salary must reflect the hierarchical level in the political system; holding a certain leadership position means earning the salary for that position, if someone holds multiple positions, they will receive the highest position's salary; equivalent leadership positions should have the same salary; senior leaders must have higher salaries than junior leaders;
A single salary for each equivalent position; no differentiation between ministries and central authorities, boards, committees, and equivalents at the Central level when constructing the Central position salary scale; no differentiation in position salaries for the same leadership title according to the classification of administrative units at the local level, which will be implemented through allowance policies.
The classification of equivalent leadership positions in the political system for designing the position salary scale is decided by the Politburo after reporting to the Central Committee.
- A professional and vocational salary scale according to the official ranks and public employee professional titles applied uniformly for officials and public employees not holding leadership titles.
This salary scale is built on the principles:
The same level of job complexity means the same salary; higher than normal working conditions and job incentives are implemented through vocational allowance policies.
Rearranging official ranks and the number of pay grades within official ranks and public employee professional titles, encouraging officials and public employees to enhance their professional qualifications. Appointment to official ranks or public employee professional titles must be linked to job positions and the structure of official ranks and public employee professional titles managed by the agency, organization, or unit utilizing officials and public employees.
What salary scale will officials and public employees apply from July 01, 2024, with the implementation of salary reform?
What is the minimum salary for officials when implementing salary reform?
Section II of Resolution 27-NQ/TW in 2018 outlines specific goals for implementing salary reform as follows:
(1) From 2018 to 2020
- Continue adjusting the statutory pay rate according to the National Assembly's resolutions, ensuring it is not lower than the consumer price index and in line with economic growth rates; no new vocational allowance types will be added.
- Complete the development and promulgation of new salary policies according to the salary reform content, linked with the administrative reform roadmap, staff streamlining; reorganizing and reforming the political system structure; renovating public service providers according to the Central Committee's resolutions.
(2) From 2021 to 2025 and towards 2030
- From 2021, implement a unified salary policy for officials and public employees, armed forces across the entire political system.
- In 2021, the lowest salary of officials and public employees equals the average minimum salary across different regions in the enterprise sector.
- Periodically raise salary levels in line with the consumer price index, economic growth rates, and state budget capacity.
- By 2025, the lowest salary of officials and public employees will be higher than the average minimum salary across different regions in the enterprise sector.
- By 2030, the lowest salary of officials and public employees will equal or exceed the highest regional minimum wage in the enterprise sector.
The minimum salary for officials when implementing salary reform ensures it is not lower than the current salary.
By 2025, it will be higher than the average minimum salary across different regions in the enterprise sector.
Furthermore, from 2025 onwards, continue to adjust the salary, increasing on average by 7% per year for officials and public employees, armed forces until the minimum salary equals or exceeds the minimum salary of Region I in the enterprise sector.
What are the guiding principles of salary reform?
Resolution 27-NQ/TW in 2018 mentions the guiding principles of salary reform as follows:
- The salary policy is a particularly important policy in the system of socio-economic policies. Salary must truly be the primary source of income ensuring the livelihood of the salaried and their families; appropriate salary payment is an investment in human resource development, a motivation to increase labor productivity and work efficiency of employees, significantly contributing to social progress and justice, ensuring political and social stability; promoting and enhancing the quality of growth and sustainable development.
- Salary policy reform must ensure overall, systematic, synchronized, inheriting and promoting strengths, effectively addressing limitations and shortcomings of the current salary policy; adhere to the principle of distribution according to labor and the objective rules of the market economy, using labor productivity increases as a basis for salary increases; meet the requirements of international integration; have a roadmap suitable to the country's socio-economic development conditions and resources.
- In the public sector, the State pays salaries to officials and public employees and armed forces according to job positions, titles, and leadership positions, in line with the state's resources and revenue from public service activities, ensuring reasonable relations with labor market salaries; implements reward and incentive policies suitably based on labor productivity, creating motivation to enhance the quality and efficiency of work, public service ethics, professional ethics, contributing to the improvement and enhancement of the efficiency of the political system's operations.
- In the enterprise sector, wages are the price of labor, formed based on agreements between employees and employers according to the market mechanism managed by the State. The State sets the minimum wage as the lowest floor to protect disadvantaged workers, and it serves as one of the bases for negotiating salaries and regulating the labor market. Wages distribution is based on labor results and business efficiency, ensuring a harmonious, stable, and progressive labor relationship in enterprises.
- Salary policy reform is an objective requirement, an important task requiring high political determination in building a socialist rule-of-law state and completing the socialist-oriented market economy institution; promoting administrative reform; reorganizing and restructuring the political system to be lean, effective, reducing staff; renewing the organization and management system, enhancing the quality and efficiency of public service providers’ activities.
LawNet