What is the salary reform roadmap under the Resolution 27? What is the perspective guiding salary reform in Vietnam?
What is the salary reform roadmap in Vietnam under the Resolution 27?
Pursuant to Resolution 27-NQ/TW in 2018, the salary reform roadmap is as follows:
From 2021 to 2025 and vision to 2030
For the public sector:
- Starting from 2021, apply a new unified salary regime for officials, public employees, and armed forces throughout the entire political system.
- In 2021, the minimum salary for officials and public employees is equal to the average region-based minimum wage of the business sector.
- Periodically adjust the salary level in accordance with the consumer price index, economic growth rate, and the capacity of the state budget.
- By 2025, the minimum salary for officials and public employees will be higher than the average region-based minimum wage of the business sector.
- By 2030, the minimum salary for officials and public employees will be equal to or higher than the highest region-based minimum wage of the business sector.
For the business sector:
- Starting from 2021, the state will regularly adjust the regional minimum wage based on the recommendations of the National Wage Council. Enterprises will implement their salary policies through negotiation and agreement between employers and employees or their representative organizations. The state will not directly intervene in the salary policies of enterprises.
Implement labor and salary management in state-owned enterprises through cost-based lump-sum payment method linked to the production and business tasks of enterprises until 2025, and move towards task-based payment for production and business tasks of enterprises by 2030.
What is the salary reform roadmap under the Resolution 27? What is the perspective guiding salary reform in Vietnam? (Image from the Internet)
What is the perspective guiding salary reform in Vietnam?
Resolution 27-NQ/TW in 2018 addresses the guiding principles for salary reform as follows:
- Salary policy is a particularly important policy in the economic-social policy system. Salaries must truly be the main source of income to ensure the livelihood of workers and their families; paying salaries correctly is an investment in human resource development, creating motivation to improve labor productivity and work efficiency, making important contributions to realizing social progress and equity, ensuring political-social stability, and promoting and enhancing the quality of growth and sustainable development.
- Salary reform must ensure an overall, systematic, and coherent approach, inheriting and promoting the advantages, effectively addressing the limitations and shortcomings of the current salary policy; adhering to the principle of distribution according to labor and the objective laws of the market economy, with labor productivity as the basis for wage increases; meeting the requirements of international integration; and having a suitable roadmap based on the country's economic-social development conditions and resources.
- In the public sector, the state pays salaries to officials, public employees, and armed forces based on positions, job titles, and leadership positions, in line with the state's resources and the revenue of the public service career, ensuring a reasonable correlation with wages in the labor market; implementing a regime of rewards and benefits commensurate with labor productivity, creating motivation to improve the quality and efficiency of work, the ethics of public service, and professional ethics, contributing to transparency and improving the effectiveness and efficiency of the political system.
- In the business sector, salaries are the price of labor, formed on the basis of agreements between workers and employers under the market mechanism with state management. The state regulates the minimum wage as the lowest threshold to protect vulnerable workers, while also serving as one of the bases for wage negotiations and labor market regulation. Salary distribution is based on labor results and production efficiency, ensuring harmonious, stable, and progressive labor relations in enterprises.
- Salary reform is an objective requirement and an important task that requires high political determination in building a socialist rule of law state and perfecting the socialist-oriented market economy system; promoting administrative reform; innovating and restructuring the organizational apparatus of the lean, efficient, and effective political system; innovating the organizational and management system, improving the quality and efficiency of the operation of public career units.
When will the When will the implementation of salary reform in Vietnam in 2024, under the Resolution 27/NQ-TW in 2018, take place?
On the afternoon of September 19, 2023, in his closing speech at the Vietnam Economic-Social Forum 2023, Chairman of the National Assembly Vương Đình Huệ stated that the forum had devoted significant time not only to current and short-term economic-social issues but also to addressing larger issues.
Of note, Chairman of the National Assembly also emphasized the early implementation of fundamental salary policy reforms in 2024. This will serve as a boost to the labor market and contribute to stimulating domestic consumption.
"This is a reform, not a normal wage increase. If nothing changes, the possible implementation date will be from July 1, 2024."
Therefore, it is possible that the salary reform in 2024 will begin to be implemented from July 1, 2024.
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