What are the highlights of the new salary regime in Vietnam from July 1, 2024? What is the salary structure according to Resolution 27?
What are the highlights of the new salary regime in Vietnam from July 1, 2024?
According to the closing speech of the Chairman of the National Assembly of the Vietnam Socio-Economic Forum 2023, it is likely that salary reform will begin to apply from July 1, 2024.
Accordingly, the new salary regimes are determined in Section II of Resolution 27-NQ/TW 2018 as follows:
(1) For officials and armed forces (Public sector)
- Annul statutory pay rate and salary coefficient
Pursuant to Point c, Clause 3.1, Section II, Resolution 27-NQ/TW 2018, when implementing salary reform, the salary coefficient of officials will be annulled along with the base salary.
- Pay salary according to job position
When implementing the new salary regime according to salary reform, civil servants and armed forces will be paid according to job position, replacing the current salary system according to the old salary transfer and grading principle. new salary.
5 job-based salary tables include:
+ 01 position salary table applicable to officials, and public employees holding leadership positions (elected and appointed) in the political system from central to commune level;
+ 01 professional salary table according to official ranks and official professional titles, applicable generally to officials and public employees who do not hold leadership positions;
+ 01 salary table for military officers, officers, non-commissioned officers in police profession (according to position, title and military rank or rank);
+ 01 salary table for professional military personnel, police technical expertise;
+ 01 salary table for defense workers and police workers.
- Annul 05 allowances
Eliminated allowances include:
+ Professional seniority allowance;
+ Leadership position allowance;
+ Allowances for party work and political and social organizations; civil service allowances;
+ Toxic and dangerous allowances.
In particular, the military, police, and cipher will not have seniority allowances cut, to ensure salary correlation with officials.
- Conbine allowances
Specifically:
+ Incorporate preferential allowances according to occupation, responsibility allowance according to occupation and toxic and dangerous allowances (collectively referred to as allowances according to occupation) applicable to officials and public employees of occupations and jobs with Working conditions are higher than normal and there are appropriate preferential policies of the State (education and training, health care, courts, procuracy, civil judgment enforcement, inspection, examination, auditing, customs, forest rangers, market management,...).
+ Combine special allowances, attraction allowances and long-term work allowances in areas with particularly difficult socio-economic conditions into work allowances in especially difficult areas.
(2) For employees in the enterprise
The new salary regime for employees in enterprises is as follows:
- Adjust the region-based minimum wage to ensure the minimum living standard of workers and their families, in relation to factors of the labor market and socio-economic development (supply - labor demand, economic growth rate, consumer price index, labor productivity, employment, unemployment, solvency of businesses...).;
- The salary of the employee is formed on the basis of agreement between the employee and the employer according to the market mechanism under the management of the State;
- Enterprises (including 100% state-owned enterprises) are allowed to decide their own wage policies (including scales, payroll, labor norms) and pay wages no lower than the minimum wage.
What are the highlights of the new salary regime in Vietnam from July 1, 2024? What is the salary structure according to Resolution 27? (Image from the Internet)
What is the salary structure in Vietnam according to Resolution 27-NQ/TW 2018?
(1) For officials and public employees, armed forces (Public sector)
Pursuant to subsection 3, Section II of Resolution 27-NQ/TW 2018, the salary structure of officials and armed forces (public sector) when implementing salary reform will include:
- Basic salary (accounting for about 70% of total salary budget);
- Allowances (accounting for about 30% of total salary budget);
- Additional bonus (bonus fund equals about 10% of the year's total salary fund, excluding allowances).
(2) For employees in the enterprise
Pursuant to clause 3.2, subsection 3, Section II of Resolution 27-NQ/TW 2018 as follows:
Reform content
...
3.2. For employees in businesses
...
b) Regarding salary and income management mechanism
- Enterprises (including 100% state-owned enterprises) are allowed to decide their own wage policies (including scales, payroll, labor norms) and pay wages no lower than the minimum wage set by the State. announced and based on collective labor agreements suitable to the production organization, labor organization, and capabilities of the enterprise and publicized in the workplace.
Accordingly, the salary structure of employees in the enterprise will be decided by each enterprise, ensuring it is not lower than the region-based minimum wage.
Vietnam: Will salary reform increase or decrease salaries?
For officials, public employees and armed forces (public sector), in clause 3.1, subsection 3, Section II of Resolution 27-NQ/TW 2018, it is mentioned as follows:
Reform content
3.1. For officials, public employees and armed forces (public sector)
...
b) Develop and issue a new payroll system based on job position, title and leadership position to replace the current payroll system; Change the old salary to the new salary, ensuring it is not lower than the current salary,
For employees in enterprises, in clause 3.2, subsection 3, Section II, Resolution 27-NQ/TW 2018 clearly states the following:
Reform content
...
3.2. For employees in businesses
...
b) Regarding salary and income management mechanism
- Enterprises (including 100% state-owned enterprises) are allowed to decide their own wage policies (including scales, payroll, labor norms) and pay wages no lower than the minimum wage set by the State, announced and based on collective labor agreements suitable to the production organization, labor organization, and capabilities of the enterprise and publicized in the workplace.
So, basically, wage reform will not reduce wages. Specifically, the salaries of officials, public employees and the armed forces in the public sector after reform will be guaranteed not to be lower than the current salary. For employees in enterprises, the salary will be decided by each enterprise, but it is guaranteed not to be lower than the region-based minimum wage.
LawNet