When to Adjust Salaries to Increase by 7% Per Year for Officials Following the Salary Reform Roadmap
When to Adjust Salaries by 7% per Year for Officials According to the Salary Reform Roadmap?
In the morning of October 23, 2023, at the National Assembly House in the capital city of Hanoi, under the chairmanship of Politburo member and National Assembly Chairman Vuong Dinh Hue, the 6th session of the 15th National Assembly officially opened.
The report of the Government of Vietnam on the results of the implementation of the socio-economic development plan for 2023 and the projected socio-economic development plan presented by Prime Minister Pham Minh Chinh at the 6th session of the 15th National Assembly stated: In recent years, despite difficulties during the COVID-19 pandemic, the Government of Vietnam has increased revenue, reduced expenditure, and allocated a salary fund, which now amounts to approximately 560 trillion VND, ensuring sufficient resources to reform salaries according to Resolution No. 27-NQ/TW from July 1, 2024, over the three years 2024 - 2026.
The Prime Minister of the Government of Vietnam announced that in 2025, the Government of Vietnam will implement wage policy reform for the public sector according to Resolution 27-NQ/TW of 2018 of the Central Committee starting from July 1, 2024.
Simultaneously, the Government of Vietnam will continue to adjust the regional minimum wage and wage policies for the enterprise sector as per regulations.
From 2025 and onwards, continue to adjust salaries by an average of 7% per year for officials and public employees, and armed forces until the lowest wage is equal to or higher than the minimum wage of Region I in the enterprise sector.
Source: Government of Vietnam News
When to Adjust Salaries by 7% per Year for Officials According to the Salary Reform Roadmap?
Abolishing the Professional Seniority Allowance from July 1, 2024, for Officials under the 2024 Salary Reform According to Resolution 27?
One of the notable points of the salary reform starting from July 1, 2024, is the abolition of the professional seniority allowance for officials. Resolution 27-NQ/TW of 2018 outlines the rearrangement of existing allowance policies, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund, to be implemented as follows:
- Continue to apply concurrent job allowance; seniority allowance exceeding the framework; regional allowance; job responsibility allowance; mobility allowance; security and defense service allowance, and specialty allowances for armed forces (military, police, cryptography).
- Merge professional preference allowance, job responsibility allowance, and hazardous, dangerous allowance (collectively referred to as professional allowance) for officials and public employees in professions and jobs with higher labor condition factors and suitable State incentive policies (education and training, healthcare, courts, procuracies, civil judgment enforcement, inspection, audit, customs, forest protection, market management, etc.). Merge special allowance, attraction allowance, and long-term service allowance in areas with particularly difficult socio-economic conditions into a working allowance in particularly difficult areas.
- Abolish professional seniority allowance (except for the military, police, cryptography to ensure salary correlation with officials); leadership position allowance (as leadership positions in the political system will receive position salaries); party tasks and social-political organization work allowance; public service allowance (as it has been included in the basic salary); hazardous, dangerous allowance (as hazardous and dangerous work conditions have been included in the professional allowance).
- New regulations on allowance policies based on administrative unit classification for communes, districts, and provinces.
- Consistently implement the monthly allowance fund package for non-specialized activists at the commune level, in hamlets, and neighborhood groups based on the regular expenditure ratio of the commune People's Committee; simultaneously specify the maximum number of non-specialized activists by each type of administrative level, hamlet, and neighborhood group. On this basis, the commune-level People's Committee submits to the same-level People's Council to specify positions qualifying for allowances, allowing one position to undertake multiple jobs while ensuring quality and efficiency.
The professional seniority allowance for officials will be abolished upon implementing the salary reform from July 1, 2024 (except for the military, police, cryptography to ensure salary correlation).
How Will the Salary Scale for Officials Be Prescribed When Implementing the Salary Reform from July 1, 2024?
Under Resolution 27-NQ/TW of 2018 on reforming wage policy for officials and public employees, and armed forces (public sector), the new salary structure is designed as follows:
- Basic salary (accounting for about 70% of the total salary fund);
- Allowances (accounting for about 30% of the total salary fund).
- Bonuses will account for about 10% of the total annual salary fund, excluding allowances (if any).
The new salary system will include 5 salary scales as follows:
- One salary scale for positions applied to officials and public employees holding leadership positions (elected and appointed) in the political system from the central to the communal level;
- One professional and administrative salary scale according to official rank and professional titles of public employees applied commonly to officials and public employees not holding leadership positions;
- One salary scale for military officers, police officers, and non-commissioned officers based on position, title, and military ranks;
- One salary scale for professional soldiers, technical professionals in the police force;
- One salary scale for defense workers, police workers (maintaining the current wage relationship between the armed forces and administrative officials).
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