Vietnam: What are the 2 new salary milestones for officials and public employees in 2024? Will the salary reform in 2024 lead to increase or reduction in the currently paid salary?
- What are the 2 new salary milestones for officials and public employees in Vietnam in 2024?
- Is it proposed to increase region-based statutory minimum wages at the same time as salary reform in Vietnam?
- What is the new salary after salary reform in Vietnam according to Resolution 27?
- What are the specific factors to design new payrolls applicable to officials and public employees in Vietnam?
What are the 2 new salary milestones for officials and public employees in Vietnam in 2024?
On May 14, 2023, the Government of Vietnam issued Decree 24/2023/ND-CP stipulating the statutory pay rate for officials public employees, and the armed forces.
Specifically, according to the provisions of Clause 2 Article 3 of Decree 24/2023/ND-CP, the statutory pay rate applied from July 1, 2023, is VND 1.8 million.
In addition, according to the closing speech of the Vietnam Socio-Economic Forum 2023 by Chairman of the National Assembly Vuong Dinh Hue, it is expected that the salary reform will be applied from July 1, 2024. Accordingly, the salary of officials and public employees in 2024 applies according to 2 milestones:
Phase 1: From January 1, 2024 to June 31, 2024, the statutory pay rate of VND 1,800,000 is applied and the salary is calculated by the salary coefficient and statutory pay rate.
Phase 2: After January 1, 2024, the statutory pay rate shall be removed and replaced by a new salary policy according to Resolution 27/NQ-TW in 2018.
In addition, under Resolution 27/NQ-TW in 2018, it will formulate and promulgate a new payroll system according to job positions, leading titles, and positions to replace the current payroll system; transfer the old salary to the new salary, ensuring that it is not lower than the currently paid salary.
Accordingly, there will be 2 payrolls for officials and public employees, including 1 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; 1 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; each rank of civil servant and professional title of public employees has many salary grades.
Is it proposed to increase region-based statutory minimum wages at the same time as salary reform in Vietnam?
In the afternoon of October 31, the National Assembly of Vietnam began discussing socio-economic issues. Make statements at the parliament, delegates of Lang Son province had opinions on salary policy in the coming time.
Specifically, the delegate of Lang Son province asked the Government of Vietnam to direct the National Wage Council to conduct early negotiations to increase the region-based statutory minimum wages for employees on July 1, 2024 at the same time as salary reform in the public sector.
In addition, the delegate of Lang Son province asked the Government of Vietnam to consider submitting to the National Assembly of Vietnam to reduce normal working hours for employees in the enterprise sector from 48 hours/week to 44 hours/week, toward 40 hours/week as in the public sector.
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What is the new salary after salary reform in Vietnam according to Resolution 27?
According to Resolution 27/NQ-TW in 2018, after abolishing the current salary calculation method and developing a new payroll specifying specific amounts.
The new salary structure of officials and public employees in Vietnam upon salary reform in 2024 will include:
- Statutory pay rate (accounting for about 70% of the total salary fund)
- Allowances (accounting for about 30% of the total salary fund)
- Bonus (bonus fund equal to about 10% of the total salary fund of the year, excluding allowances)
The new payrolls after removing the statutory pay rate and salary coefficient for officials and public employees include:
- Formulate 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 according to the following principles:
+ The salary of positions must reflect the hierarchy in the political system; a person holding a leading position shall be paid according to that position, if a person holds more than one position, he/she shall enjoy the salary applicable to the highest position salary; a person holding the same leading position shall enjoy the same position salary; the position salary of the superior leader must be higher than the position salary of the subordinate leader;
+ Prescribe a salary for each equivalent type of office; fail to classify ministries, branches, departments, committees, and their equivalents at the Central level when formulating the payroll of posts at the Central; do not distinguish between different salaries and positions for the same leading title according to the classification of local administrative units, but implemented by allowances.
+ The classification of equivalent leadership positions in the political system to design the position payroll shall be decided by the Politburo after reporting to the Central Committee.
- Formulate 1 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; Each rank of civil servant and professional title of public employees has many salary grades according to the principles:
+ At the same level of work complexity, the salary is the same;
+ In case of higher than normal working conditions and vocational incentives, job-based allowances;
+ Rearrange the group of ranks and the number of grades in the ranks of civil servants and professional titles of public employees, and encourage officials and public employees to improve their professional qualifications.
The appointment to the rank of civil servant or professional title of public employee must be associated with the job position and structure of ranks of civil servants, and professional titles of public employees and implemented by agencies, organizations, and units managing officials and public employees.
What are the specific factors to design new payrolls applicable to officials and public employees in Vietnam?
Based on Point c, Clause 3.1, Section II of Resolution 27/NQ-TW in 2018, there are 05 specific factors to design new payrolls applicable to officials and public employees in Vietnam as follows:
- Abolish the current statutory pay rate and salary coefficient, and develop the statutory pay rate with a specific amount in the new payroll.
- Uniformly implement the labor contract regime according to the provisions of the Labor Code (or service provision contracts) for those doing executive and serving jobs (requires training level lower than intermediate level), the payroll applicable to civil servants and public employees is not applied to these subjects.
- Determine the lowest salary of officials and public employees in the public sector that is the salary of people doing jobs requiring intermediate training level (level 1) and is 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 salary relationship of the enterprise sector in accordance with the State's resources.
- Complete the regular salary upgrade and salary upgrade ahead of time for officials, public employees, and the armed forces in accordance with the provisions of the new payroll.
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