Vietnam: What are the official allowances specified in the new salary policy applied from July 1, 2024 upon salary reform?
What are the official allowances specified in the new salary policy applied from July 1, 2024 upon salary reform in Vietnam?
>> See also: Who will be given the highest salary ranking in the salary scale upon salary reform in 2024?
How much will salaries paid to officials increase from July 1, 2024?
Recently, the National Assembly of Vietnam voted to approve the Resolution on the state budget estimate for 2024, including the content on the implementation of the salary policy from July 1, 2024 according to Resolution 27-NQ/TW in 2018.
Accordingly, 09 official allowances specified in the new salary policy include:
- Part-time allowance;
- Extra-seniority allowance;
- Regional allowances;
- Responsibility allowance;
- Mobility allowance;
- Occupation-based allowance;
- Working allowances in particularly disadvantaged areas;
- Allowances according to the classification of administrative units;
- Allowances applied exclusively to the armed forces.
Thus, the 09 official allowances specified in the new salary policy are specified above.
Besides, in Resolution 27-NQ/TW of 2018, the current allowances will be rearranged, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund - Continue to retain part-time allowances; extra-seniority allowances; regional allowances; allowances for job responsibilities; mobility allowances; allowances for security and defense services and allowances specific to the armed forces (army, police, cipher agencies). - Combine job-based preferential allowances, liability allowances, and hazardous and dangerous allowances (collectively referred to as occupational allowances) applicable to officials and public employees of occupations and jobs with higher than normal working conditions and appropriate preferential policies of the State (education and training, health, courts, procuracy, civil judgment enforcement, inspection, audit, customs, forest rangers, market management,...); combine special allowances, attraction allowances, and allowances for long-term work in areas with extremely difficult socio-economic conditions into working allowances in extremely difficult areas. - Abolish seniority allowances (except for the military, police, and cipher agencies to ensure salary correlation with officials and civil servants); leader allowances (due to the ranking of salaries in the political system); allowances for party work, and socio-political organizations; official duty allowances (due to inclusion in the statutory pay rate); hazardous and dangerous allowances (due to the inclusion of hazardous and dangerous working conditions in occupational allowances). |
What is the specific roadmap for salary reform during 2021-2025, a vision to 2030 in Vietnam?
In Resolution 27-NQ/TW 2018, the roadmap for salary reform during 2021-2025, a vision to 2030 is specified as follows:
For the public sector
- From 2021, apply a new unified salary regime for officials, public employees, and armed forces in the entire political system.
- In 2021, the lowest salary paid to officials, and public employees is equal to the average region-based statutory minimum wage in the enterprise sector.
- Periodically raise salaries in accordance with the consumer price index, economic growth, and state budget capacity.
- By 2025, the lowest salary paid to officials and public employees will be higher than the average region-based statutory minimum wage in the enterprise sector.
- By 2030, the lowest salary paid to officials, and public employees will be equal to or higher than the lowest salary of the highest region of the enterprise sector.
For the enterprise sector
- From 2021, the State periodically adjusts the region-based statutory minimum wage based on recommendations of the National Salary Council. Enterprises are allowed to implement salary policies on the basis of negotiations and agreements between employers and employees and collective representatives of employees; The state does not directly intervene in enterprises' salary policies.
- Implement labor and salary management in state-owned enterprises according to the method of contracting salary costs associated with the production and business tasks of the enterprise until 2025 and moving towards contracting the production and business tasks of the enterprise by 2030.
What are the leader allowance and salary grading principles in Vietnam?
In Clause 1, Article 3 of Decree 204/2004/ND-CP, the leader allowance and salary grading principles in Vietnam are:
A(n) official or public employee who is appointed to a certain category of civil servants and public employees (hereinafter referred to as category) or a certain professional title of the Juridical Courts and Procuracy (hereinafter referred to as title) shall be entitled to the salary grade in accordance with that category or title.
An elected official who is entitled to position allowance and professional salary shall be entitled to the salary in accordance with the salary categories and grades applicable to administrative officials and to the position allowance applicable to the elected title that he/she holds.
A(n) official or public employee who holds a position of authority (elected or appointed) shall be entitled to a position allowance and salary applicable to that position. If one person who concurrently holds several positions of authority shall be entitled to the position allowance for his/her highest position. One person shall be entitled to pluralism allowance in the case he/she concurrently holds the top management position of another office/agency and/or unit that is allowed to have a full-time top management position.
The remuneration for persons of the armed forces and full-time officials in charge of coding and codes in organizations for coding and codes shall be graded in accordance with the respective payrolls to which they are subject.
The salary grading from old payrolls to new payrolls must be done together with the review and rearrangement of staff and personnel in the offices and units; review and improvement of standards for job titles for officials and public employees. In the case that their salaries have not been graded in accordance with the regulations set by competent agencies, they must be entitled to a newly graded salary and position allowance (if any) as stipulated.
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