Which current payrolls based on statutory pay rate will be replaced by the new payrolls after salary reform in Vietnam in 2024?
- Which current payrolls based on statutory pay rate will be replaced by the new payrolls after salary reform in Vietnam in 2024?
- Will officials' payrolls increase by 30% after the salary reform in Vietnam in 2024?
- When will the 02 new allowances for officials be applied under the salary reform policy in Vietnam?
Which current payrolls based on statutory pay rate will be replaced by the new payrolls after salary reform in Vietnam in 2024?
Pursuant to Decree 204/2004/ND-CP, officials, public employees, and armed forces personnel currently apply 06 unified payrolls as follows:
Table 1: Salary schedule applicable to senior experts.
Table 2: Profession salary schedule applicable to cadres and public employees in the State agencies (including those who hold elected positions that entitle them to the salary which is determined in accordance with the salary schedule applicable to administrative public servants and with the position allowance schedule applicable to positions of authority and public servants in communes, wards and townships).
Table 3: Profession salary schedules applicable to cadres and public servants in the State public service agencies units.
Table 4: Salary schedule applicable to staff members who work in the State agencies and public service agencies units.
Table 6: Salary schedule applicable to officers in the people’s army, and officers and non-commissioned officers in the people’s public security force
Table 7: Salary schedule applicable to professional soldiers in the people’s army and technical specialists the people’s public security force.
The National Assembly conducted a vote approving the Resolution on the state budget estimate for 2024 on the morning of November 10th. Accordingly, the Resolution resolves to implement comprehensive salary policy reform according to Resolution 27-NQ/TW in 2018 from July 1, 2024.
Resolution 27-NQ/TW in 2018 stipulates that when implementing the salary reform in 2024, a new system of payrolls will be developed and issued based on job positions, titles, and leadership positions, replacing the current system of payrolls. The existing salary arrangement will be converted to the new salary, ensuring that it is not lower than the current salary being received.
Therefore, when implementing the salary reform in 2024 from July 1, 2024, officials, public employees, and armed forces personnel will apply the following 05 new payrolls:
Payroll 1:
Payroll applicable to leadership positions (elected and appointed) in the political system from the central to commune levels.
Payroll 2:
Payroll applicable to professional and technical positions based on officials' ranks and public employees' professional titles, applicable to officials and public employees without leadership positions. Each officials' rank and public employees' professional title will have multiple pay steps.
Payroll 3:
Payroll applicable to military officers, police officers, and non-commissioned officers (based on ranks or grades and positions or titles).
Payroll 4:
Payroll applicable to professional servicemen and technical professionals in the police force.
Payroll 5:
Payroll applicable to defense workers and police officers (with a salary relationship to administrative officials as it is currently).
Therefore, when implementing the salary reform in 2024 on July 1, 2024, officials, public employees, and armed forces personnel will apply the unified system of 05 new payrolls based on job positions, titles, and leadership positions as stipulated in Resolution 27, replacing the current 06 payrolls.
Which current payrolls based on statutory pay rate will be replaced by the new payrolls after salary reform in Vietnam in 2024?
Will officials' payrolls increase by 30% after the salary reform in Vietnam in 2024?
According to the Government's official portal, the Minister of the Ministry of Home Affairs stated that, under the salary reform plan, starting from July 1, the average salary for officials and public employees is expected to increase by approximately 30% (including base pay and allowances).
From 2025 onwards, this salary level will continue to be adjusted annually, increasing by an average of 7% per year.
Although we haven't implemented the salary reform in the past three years, we have adjusted the statutory pay rate twice, resulting in a 29.5% increase. Therefore, when calculating from 2021 (the expected time to implement the salary reform according to Resolution 27-NQ/TW in 2018) until July 1, the salaries of officials and public employees have increased significantly, averaging about 60%. While this figure may not be groundbreaking, it is still a considerable increase compared to the average annual increase of 7% without implementing the salary reform.
Therefore, when implementing the salary reform policy on July 1, 2024, the salaries of officials based on job positions are expected to increase by approximately 30% (including base pay and allowances).
From 2025 onwards, the salaries of officials based on job positions will continue to be adjusted annually, increasing by an average of 7% per year.
When will the 02 new allowances for officials be applied under the salary reform policy in Vietnam?
Pursuant to Resolution 27-NQ/TW in 2018, when implementing the salary reform in 2024, officials will have 02 new allowances as follows:
(1) Allowance based on profession, including the consolidation of profession-based preferential allowances, responsibility allowances, and hazardous allowances. This allowance applies to officials and public employees in professions and jobs with higher labor conditions than normal and with appropriate preferential policies from the state (such as education and training, healthcare, courts, prosecution, civil enforcement, inspection, auditing, customs, forestry management, market management, etc.).
(2) Allowance for working in extremely difficult areas, including the consolidation of special allowances, attraction allowances, and long-term working allowances in economically and socially extremely difficult areas.
However, in essence, these 02 allowances are formed from existing allowances, so they can be considered "new" in terms of nomenclature.
According to the unified resolution on the state budget estimate for 2024, the salary reform policy will be implemented from July 1, 2024. Therefore, the two new allowances for officials under the salary reform policy may be applied from July 1, 2024. However, the specific and accurate implementation of these two allowances for officials under the salary reform policy will require guidance from the competent state authorities.
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