From July 1, 2024: What types of allowances will public employees receive after the 2024 salary reform in Vietnam?

Main Content

What is the minimum salary of a public employee in Vietnam in 2024? What is the change of minimum salary of a public employee from July 1, 2024?

The minimum salary of a public employee in 2024 is divided into two time periods as follows:

*From January 1, 2024 - June 30, 2024

Currently, the minimum salary for a C3 public employee is stipulated in Table 3 attached to Decree 204/2004/ND-CP, supplemented by point đ clause 2 Article 1 of Decree 17/2013/ND-CP as follows:

The current minimum salary for a C3 public employee with a coefficient of 1.5 is 2,700,000 VND/month.

This salary is calculated based on the statutory pay rate of 1,800,000 VND (Decree 24/2023/ND-CP).

*From July 1, 2024

On November 10, the National Assembly passed a resolution on the state budget estimates for 2024.

The resolution clearly states that from July 1, 2024, a comprehensive reform of salary policy will be implemented according to Resolution 27-NQ/TW in 2018 from the Seventh Plenary Session of the Twelfth Central Committee.

According to Resolution 27-NQ/TW in 2018, the goals set for officials, civil servants, and public employees when implementing salary reform in 2024 are as follows:

Specific goals

...

(2) From 2021 to 2025 and with a vision to 2030

a) For the public sector

- From 2021, apply a new, unified salary policy for officials and public employees, armed forces within the entire political system.

- In 2021, the minimum salary of officials and public employees will equal the average minimum salary of different regions in the enterprise sector.

- Periodically adjust the salary level in line with the consumer price index, economic growth rates, and the state budget's capacity.

- By 2025, the minimum salary of officials and public employees will be higher than the average minimum salary of different regions in the enterprise sector.

- By 2030, the minimum salary of officials and public employees will be equal to or higher than the highest regional minimum salary in the enterprise sector.

Thus, if there are no changes, the minimum salary for public employees from July 1, 2024, will be equal to the average minimum regional salary in the enterprise sector.

On December 20, 2023, the National Wage Council organized a meeting to discuss and negotiate the region-based minimum wage adjustment plan for 2024.

At the meeting, all members of the National Wage Council present voted to set the region-based minimum wage increase for 2024 at 6%, effective from July 1, 2024.

With a 6% increase in the region-based minimum wage, the enterprise sector's salaries are projected to be:

Thus, the average minimum salary in the enterprise sector after a 6% region-based minimum wage increase will be around 4.1 million VND.

Meaning, the minimum salary for public employees from July 1, 2024, could be 4.1 million VND.

There will be two minimum salary levels for public employees in 2024:

Before the salary reform with a salary of 2,700,000 VND and after the salary reform with a salary potentially around 4,100,000 VND.

From July 1, 2024: What types of allowances will public employees receive after the 2024 salary reform in Vietnam?

From July 1, 2024: What types of allowances will public employees receive after the 2024 salary reform in Vietnam?

Based on Resolution 27-NQ/TW 2018, from July 1, 2024, public employees will be entitled to 8 types of allowances including:

(1) Concurrent position allowance

(2) Seniority allowance exceeding the framework

(3) Regional allowance

(4) Professional allowance

(5) Mobility allowance

(6) Allowance for working in particularly difficult areas

(7) Allowance by administrative unit classification

(8) Job responsibility allowance

These 8 types of allowances will be applied to public employees when the salary reform takes effect on July 1, 2024.

What is the deadline for issuing the Decree on new salary policies for officials, public employees, and armed forces in Vietnam in May 2024?

The Government of Vietnam has just issued Resolution 01/NQ-CP 2024 on main tasks and solutions for implementing the socio-economic development plan and state budget estimates for 2024, which includes important directives regarding salary reform for officials, public employees, and armed forces.

The Government of Vietnam will implement comprehensive, effective, and synchronized salary policy reform according to Resolution 27-NQ/TW 2018 of the Central Committee on salary policy reform for officials, public employees, armed forces, and workers in enterprises.

Complete the development of job positions for officials and public employees in the state administrative system before March 31, 2024; simultaneously clearly defining the responsibilities of each ministry, central authority, local authority, and head to serve as the basis for implementing salary policy reform from July 1, 2024.

Continue to effectively implement the comprehensive administrative reform program, focusing on institutional reform, organizational improvement, civil service, and administrative procedures; concentrate on building the electronic Government of Vietnam towards a digital Government of Vietnam, promoting national digital transformation.

Enhance the development of online public service delivery systems serving the people and businesses.

Implement comprehensive policies, laws related to anti-corruption, negative behaviors, and increase transparency and openness in inspection activities.

According to Appendix IV, some specific tasks for sectors and fields in 2024 (attached to Resolution 01/NQ-CP 2024), the Government of Vietnam assigned the Ministry of Home Affairs to take the lead in implementation, by May 2024, a Decree specifying the new salary policies for officials, public employees, and armed forces must be completed.

Currently, the salary policies for officials, public employees, and armed forces are being implemented according to the regulations in Decree 204/2004/ND-CP.

If the new Decree is issued, it may replace Decree 204/2004/ND-CP.

Source: Government of Vietnam's Electronic Information Portal