Which Subjects Will Have Their Leadership Position Allowance Removed from July 1, 2024, According to Resolution 27?
Which subjects will have their leadership position allowances abolished from July 1, 2024, when the 2024 salary reform takes effect?
At the closing session of the Vietnam Socio-Economic Forum 2023 held in Hanoi on September 19, 2023, National Assembly Chairman Vuong Dinh Hue emphasized the need to fundamentally reform the salary policy in 2024.
“This is a reform, not a normal salary increase. If there are no changes, we can implement it from July 1, 2024.”
Additionally, the localities have accumulated funds for salary reform amounting to VND 208,457 billion. Therefore, the budget surplus is VND 263,000 billion to carry out salary reform from 2024.
One of the notable points of the salary reform starting from July 1, 2024, is the abolition of leadership position allowances for officials.
To be specific: in Resolution 27/NQ-TW of 2018, it states:
Reform content
3.1. For officials and public employees, and armed forces (public sector)
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d) Rearrange the current allowance policies, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund.
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- Abolish seniority allowance (except for the army, police, and cipher to ensure parity with officials); leadership position allowance (as the leadership positions in the political system will implement salary ranking based on position); party, political-social union allowance; public service allowance (as it is included in the basic salary); hazardous and dangerous allowance (as hazardous and dangerous working conditions are included in the profession-based allowance).
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It is possible that the leadership position allowance for officials will be abolished when the salary reform is implemented from July 1, 2024.
The subjects that might have their leadership position allowances abolished when the salary reform is implemented from July 1, 2024, include those specified in Section I of Circular 02/2005/TT-BNV as follows:
- Elected officials in state agencies from the central to district, urban district, district-level town, and provincial city levels (district level) who are classified under the administrative official salary grade and enjoy leadership position allowances.
- Officials and public employees (including professional positions in the Court sector and the Prosecutor sector) appointed to leadership positions in state agencies from the central to district levels and in state public service providers established by competent authorities.
- Officials and public employees under the state's payroll who are assigned to hold specialized leadership positions in associations and non-government organizations in Vietnam.
Which subjects will have their leadership position allowances abolished from July 1, 2024, according to Resolution 27?
What is the specific roadmap for salary reform from 2021 to 2025 with a vision to 2030?
In Resolution 27-NQ/TW of 2018, specific goals for implementing salary reform from 2021 to 2025 with a vision to 2030 are outlined as follows:
* For the public sector
- From 2021, apply a unified salary policy for officials and public employees, and armed forces across the entire political system.
- In 2021, the lowest salary of officials and public employees will be equal to the average minimum salary of enterprise regions.
- Periodically increase salaries in alignment with the consumer price index, economic growth rate, and state budget capacity.
- By 2025, the lowest salary of officials and public employees will be higher than the average minimum salary of enterprise regions.
- By 2030, the lowest salary of officials and public employees will be equal to or higher than the minimum salary of the highest region in the enterprise sector.
* For the enterprise sector
- From 2021, the state will periodically adjust regional minimum wages based on the recommendations of the National Wage Council. Enterprises will implement salary policies based on negotiations and agreements between employers and employees and representative organizations of employees; the state will not directly intervene in enterprises' salary policies.
- Manage labor and salaries in state enterprises through wage cost contracts linked to business production tasks until 2025, and gradually move towards contracting business production tasks by 2030.
How is the current formula for calculating leadership position allowances stipulated?
At point b, clause 1, Article 3 of Circular 10/2023/TT-BNV, the formula for calculating allowances is specified as:
Leadership position allowance = statutory pay rate x current allowance coefficient
The current leadership position allowance is calculated based on the statutory pay rate (VND 1,800,000) and the allowance coefficient.
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