Vietnam: What is the calculation of salaries paid to officials and public employees before and after salary reform from July 1, 2024?
- What is the calculation of salaries paid to officials and public employees in Vietnam before and after salary reform from July 1, 2024?
- Shall salaries paid to officials and public employees in Vietnam be no longer calculated based on salary coefficient and statutory pay rate?
- What is the calculation of allowances for officials and public employees in Vietnam?
What is the calculation of salaries paid to officials and public employees in Vietnam before and after salary reform from July 1, 2024?
Accordingly, salaries paid to officials and public employees in 2024 are calculated by the following formula:
Salary = statutory pay rate x Salary coefficient
For example, Class A1 civil servants have a starting salary coefficient of 2.34, and the salary received is 4,212,000 VND/month. according to the current statutory pay rate of 1,800,000 VND/month
(2) Calculate salaries paid to officials and public employees after salary reform
According to Resolution 27/NQ-TW in 2018, upon salary reform, a new salary structure will be designed for officials and public employees, including:
Salary = Base pay + allowances + bonuses (if any, accounting for about 10% of the year's salary fund, excluding allowances)
Thus, there have been changes in the calculation of salaries paid to officials and public employees before and after the salary reform. However, it will transfer the old salary to the new salary that is not lower than the currently paid salary.
What are the new payrolls applicable to officials and public employees from July 1, 2024?
Shall salaries paid to officials and public employees in Vietnam be no longer calculated based on salary coefficient and statutory pay rate?
According to Resolution 27/NQ-TW, upon salary reform, it will abolish the current statutory pay rate and salary coefficient and specify the base pay in the new payroll.
Thus, instead of calculating salaries paid to officials and public employees based on salary coefficients and statutory pay rate, the base pay shall be specified in the new payroll.
In addition, uniformly implement the labor contract regime as prescribed by the Labor Code (or service contracts) for those doing administrative and service jobs (requiring below intermediate training levels), not applying the payroll of civil servants and public employees to these subjects.
- Determine the lowest salary of civil servants 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 in accordance with 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 in accordance with the provisions of the new payroll.
What is the calculation of allowances for officials and public employees in Vietnam?
According to the guidance in Article 3 of Circular 10/2023/TT-BNV, allowances are calculated as follows:
- For allowances calculated according to the statutory pay rate:
Salary from July 1, 2023 = Statutory pay rate of VND 1,800,000/month + Current salary coefficient
- For allowances calculated by a % of the current salary plus leader allowances for and extra-seniority allowances (if any):
Allowances from July 1, 2023 = Salary from July 1, 2023 + leader allowance from July 1, 2023 (if any) + extra-seniority allowance from July 1, 2023 (if any) + allowance level
- For allowances specified in specific amounts, they shall remain the same according to current regulations.
However, upon salary reform from July 1, 2024, 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 civil servants and 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 cadres 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 base pay); hazardous and dangerous allowances (due to the inclusion of hazardous and dangerous working conditions in occupational allowances).
- Specify new regulations on allowances according to the classification of administrative units for commune, district, and provincial levels.
- Consistently allocate monthly allowances to full-time employees at the commune, village, and residential quarter level above the recurrent expenditure rate of the commune-level People's Committee; at the same time, stipulate the maximum number of part-time employees according to each type of commune, village and residential quarter.
On that basis, the commune-level People's Committees shall submit to the People's Councils of the same level specific titles entitled to allowances in the direction that a title can undertake many jobs but must ensure the quality and efficiency of assigned tasks.
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