What are the changes of allowances of part-time officials after the salary reform in Vietnam in 2024 according to Resolution 27?

What are the changes of allowances of part-time officials after the salary reform in Vietnam in 2024 according to Resolution 27?

What are the changes of allowances of part-time officials after the salary reform in Vietnam in 2024 according to Resolution 27?

Based on point d, subsection 3.1, Section 3, Part II of Resolution 27/NQ-TW of 2018, it is stated as follows:

DIRECTING VIEWPOINTS, OBJECTIVES AND CONTENT OF REFORM
...
3. Reform content
3.1. For officials, public employees and armed forces (public sector)
...
d) Rearrange current allowance regimes, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary budget
...
- Consistently implement monthly allowance funds for part-time officials of communes and neighborhoods based on the regular expenditure ratio of the Commune People's Committee; At the same time, regulate the maximum number of part-time officials for each type of communes and neighborhoods. On that basis, the People's Committee at the commune level submits to the People's Council at the same level to specifically stipulate the titles eligible for allowances in the direction that one title can undertake many jobs but must ensure the quality and efficiency of work.

Accordingly, Resolution 27/NQ-TW of 2018 stated the viewpoint of directing salary reform to consistently implement monthly allowance funds for part-time officials of communes and neighborhoods based on the Committee's regular expenditure ratio for commune-level people; At the same time, regulate the maximum number of part-time officials for each type of communes and neighborhoods.

On that basis, the People's Committee at the commune level submits to the People's Council at the same level to specifically stipulate the titles eligible for allowances in the direction that one title can undertake many jobs but must ensure the quality and efficiency of work.

What are the changes of allowances of part-time officials after the salary reform in Vietnam in 2024 according to Resolution 27?

What is the current allowance regime for part-time officials of communes and neighborhoods in Vietnam?

Pursuant to the provisions of Article 34 of Decree 33/2023/ND-CP regulating Allowances for part-time officials of communes and neighborhoods currently as follows:

(1) Part-time officials of communes shall be entitled to allowances:

Central government budgets allocated for monthly paying allowances (including supports of social insurance and health insurance premiums) to part-time officials of communes are as follows:

- Class I third-level administrative subdivisions are entitled to an allowance equal to 21,0 times of the statutory pay rate;

- Class II third-level administrative subdivisions are entitled to an allowance equal to 18,0 times of the statutory pay rate;

- Class III third-level administrative subdivisions are entitled to an allowance equal to 15,0 times of the statutory pay rate.

For third-level administrative subdivisions in which the number of commune-level part-time officials increases in accordance with the regulations in Clause 2 Article 33 of Decree 33/2023/ND-CP, the total pay rate of allowances may increase by 1,5 times of the statutory pay rate for each part-time official who is newly recruited.

(2) Allowances shall be paid for part-time officials of neighborhoods at the fixed rate.

Central government budgets allocated for monthly paying allowances to part-time officials of neighborhoods are as follows:

- For villages with at least 350 households; neighborhoods with at least 500 households; villages and neighborhoods of key third-level administrative subdivisions where security and order are difficult to control according to competent authorities’ decisions; villages and neighborhoods of third-level administrative subdivisions in border regions and islands, allowances shall be paid at the fixed rate, equal to 6,0 times of the statutory pay rate.

If villages with at least 350 households are developed into neighborhoods due to establishment of third-tier urban areas, allowances shall be paid at the fixed rate, equal to 6,0 times of the statutory pay rate;

- For villages and neighborhoods that are not prescribed in point a Clause 2 of this Article, allowances shall be paid at the fixed rate, equal to 4,5 times of the statutory pay rate;

- If second-level administrative subdivisions do not organize third-level administrative subdivisions, villages and neighborhoods prescribed in Points a and b of this Clause shall be determined according to such second-level administrative subdivisions.

* Note: If an official part-time official of a commune or neighborhood concurrently holds the position of another part-time official of the commune or neighborhood, he/she shall receive a multi-position allowance equal to 100% of the prescribed allowance of the position that he/she concurrently holds.

(3) The People’s Committees of provinces shall propose to the People's Councils at the same level provision of specific regulations on the following contents:

On the basis of fixed allowances granted to communes, villages and neighborhoods by central government budget prescribed in Clauses 1 and 2 of Article 34 of Decree 33/2023/ND-CP; funding for reform of local wage policies; regulations of relevant laws and characteristics of communes, villages and neighborhoods

- Titles of part-time officials of communes;

- The plurality of titles of part-time officials of communes and neighborhoods, and regulations on part-time officials of neighborhoods concurrently holding positions of persons directly participating in activities of neighborhoods.

- Allowance of each title of part-time officials of communes and neighborhoods appropriate to the grade-1 salary of commune-level officials who have the same professional qualifications to encourage part-time officials of communes and neighborhoods to study and improve their professional qualifications; specific regulations on the fixed rate of operating expenses of socio-political organizations of communes; monthly supports and multi-position allowances for persons directly participating in activities of villages and neighborhoods suitable for the current situation of their villages and neighborhoods.

Vietnam: When will salary reform be implemented according to Resolution 27?

On the afternoon of September 19, 2023, National Assembly Chairman Vuong Dinh Hue delivered a closing speech at the Vietnam Socio-Economic Forum 2023, which emphasized the early implementation of fundamental wage policy reform in 2024.

The National Assembly Chairman also emphasized the early implementation of fundamental wage policy reform in 2024. This is also a boost for the labor market, contributing to stimulating domestic consumption demand.

"This is a reform, not a normal salary increase. If nothing changes, the time we can apply it is from July 1, 2024."

Thus, the salary policy reform is expected to apply from July 1, 2024.

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