Vietnam: Shall Decree on new salary policies applicable to officials, public employees, and armed forces be officially issued in May 2024?

“Shall Decree on new salary policies applicable to officials, public employees, and armed forces in Vietnam be officially issued in May 2024?” - asked Mr. V.T (Nghe An)

Shall Decree on new salary policies applicable to officials, public employees, and armed forces in Vietnam be officially issued in May 2024?

The Government of Vietnam has just issued Resolution 01/NQ-CP on key tasks and solutions to implement the socio-economic development plan and state budget estimate in 2024, including important instructions related to salary reform for officials, public employees, and armed forces in Vietnam.

Accordingly, the Government of Vietnam shall synchronously, comprehensively, and effectively implement the salary policy reform under Resolution 27-NQ/TW 2018 of the Central Committee of CPV.

Complete the formulation of job positions for officials and public employees in the state administrative system by March 31, 2024; at the same time, clearly define the responsibilities of each ministry, central authority, local authority, and head to serve as a basis for implementing salary policy reform from July 1, 2024.

Continue to effectively implement the Master Program on Administrative Reform, focusing on institutional reform, organizational reform of the apparatus, civil servants, official duty, and administrative procedures; focus on building an e-government towards a digital Government, promoting national digital transformation.

Promote the development of online public service-providing systems to serve people and enterprises.

Synchronously implement guidelines, policies and laws on corruption prevention and fighting; enhance openness and transparency in inspection activities.

According to Appendix IV, some specific tasks for industries and fields in 2024 (attached to Resolution 01/NQ-CP 2024), the Government of Vietnam assigned the Ministry of Home Affairs to preside over the implementation and complete the Decree stipulating the new salary policies for officials, public employees, and the armed forces in May 2024.

Thus, currently, the salary policies applicable to officials, public employees, and armed forces in Vietnam are complying with the regulations in Decree 204/2004/ND-CP.

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

Source: Government Electronic Information Portal

What are the entities to which the new payrolls after salary reform are applied in Vietnam?

Recently, the Chairman of the National Assembly of Vietnam signed for issuance of Resolution 104/2023/QH15 on State Budget Estimates for 2024.

According to Resolution 104/2023/QH15, from July 1, 2024, it will implement the overall salary policy reform under Resolution 27-NQ/TW in 2018.

According to the spirit of Resolution 27-NQ/TW of 2018, it will formulate new payrolls based on job positions, leading titles and positions applicable to officials, public employees, and armed forces in Vietnam to replace the current payroll system; and change and grade the old salary to the new salary, ensuring it is not lower than the current salary:

- 01 position payroll applicable to officials, and public employees holding leading positions (elections and appointments) in the political system from the central to the commune level

- 01 professional payroll according to the rank of civil servants and professional titles of public employees generally applicable to officials and public employees who do not hold leading titles

- 01 payroll applicable to army officers, officers, and non-commissioned officers in police service (by position, title, and military rank or grade);

- 01 payroll applicable to professional servicemen and technical police officers

- 01 payroll applicable to defense workers, and police workers (which keeps the salary correlation of the armed forces compared to administrative officials as at present).

Thus, from July 1, 2024, the new payrolls after salary reform are applied to:

- Officials and public employees holding leading positions;

- Officials and public employees not holding leading positions;

- Army officers

- Officers, and non-commissioned officers in police service

- Professional servicemen

- Technical police officers

- Defense workers, and

- Police workers

However, according to the content in Resolution 104/2023/QH15, it will implement the salary reform under Resolution 27-NQ/TW in 2018, but there has not been an official document issued on 05 new payrolls applicable to the above entities.

What are the factors as the basis for formulating the 05 new payrolls applicable from July 1, 2024 in Vietnam?

According to the spirit of Resolution 27-NQ/TW 2018, 05 job positions-based payrolls applicable to officials, public employees, and armed forces in Vietnam after salary reform in 2024 are formulated by the following factors:

- Abolish the current statutory pay rate and salary coefficient and specify the base pay in the new payroll.

- Uniformly implement the labor contract regime as prescribed by the Labor Code (or service contracts) for administrative support officials (requiring below intermediate training levels), not applying the payroll of officials and public employees to these entities.

- Determine the lowest salary of officials and public employees in the public sector as the salary of the person doing the job requiring intermediate training level (level 1) not lower than the lowest salary of trained employees in the enterprise sector.

- Expand the salary relationship as a basis for determining specific salaries in the payroll system, gradually approaching the wage relationship of the enterprise sector by the State's resources.

- Complete policies on the regular salary upgrade and salary upgrade ahead of time for officials, public employees, and the armed forces by the provisions of the new payroll.

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