Who is Eligible for Salary Reform under Resolution 27/NQ-TW of 2018? When Will the Salary Reform be Implemented?
Who is Eligible for Wage Reform under Resolution 27/NQ-TW of 2018?
In his closing remarks at the Vietnam Socio-Economic Forum 2023, National Assembly Chairman Vuong Dinh Hue emphasized the prompt implementation of wage policy reform as follows:
"This is a reform, not just a regular wage increase. If nothing changes, we can apply it starting from July 1, 2024."
Thus, it is very likely that wage reform will start to be applied from July 1, 2024.
According to Subsection 1, Section II of Resolution 27-NQ/TW 2018 on guiding principles for wage reform as follows:
GUIDING PRINCIPLES, OBJECTIVES, AND CONTENT OF THE REFORM
1. Guiding Principles
...
1.3. In the public sector,* the State pays salaries for officials and public employees and the armed forces according to job positions, titles, and leadership positions, suitable with the state's resources and revenue from public service activities, ensuring a reasonable correlation with wages in the labor market; implements deserving benefits and reward policies based on labor productivity, creating motivation to improve work quality, efficiency, public ethics, professional ethics, contributing to the purification and enhancement of the effectiveness and efficiency of the political system's activities.*
1.4. In the enterprise sector,* wages are the price of labor, formed based on agreement between employees and employers according to market mechanisms managed by the State. The State stipulates the minimum wage as the lowest floor level to protect vulnerable workers and as one of the bases for wage agreement and labor market regulation. Wage distribution is based on labor results and business production efficiency, ensuring harmonious, stable, and progressive labor relations within enterprises.*
Simultaneously, in Subsection 3, Section II of Resolution 27-NQ/TW 2018 key content of the reform is also specified as follows:
Content of the Reform
3.1. For officials and public employees and the armed forces (public sector)
....
3.2. For employees in enterprises
Thus, those subjected to the wage reform policy in 2024 include:
- Officials, public employees, and the armed forces (public sector)
- Employees in enterprises.
Who is eligible for wage reform under Resolution 27/NQ-TW 2018? When will the wage reform be implemented?
When will the new wage structure for officials and public employees be applied according to Resolution 27 on wage reform?
On the afternoon of September 19, 2023, National Assembly Chairman Vuong Dinh Hue delivered the closing remarks at the Vietnam Socio-Economic Forum 2023, emphasizing the prompt and fundamental implementation of wage policy reform in 2024.
"This is a reform, not just a regular wage increase. If nothing changes, we can apply it starting from July 1, 2024."
Thus, it is expected that the wage policy reform may be applied from July 1, 2024.
What is the specific roadmap for wage reform according to Resolution 27?
According to Resolution 27-NQ/TW 2018, specific goals for wage reform from 2021 to 2025 and vision until 2030 are set as follows:
(1) For the public sector
- From 2021, apply unified new wage policies for officials, public employees, and the armed forces across the entire political system.
- In 2021, the minimum wage of officials and public employees will be equal to the average minimum wage of enterprises in various regions.
- Periodically adjust the wage level in line with the consumer price index, economic growth rate, and the state's budget capacity.
- By 2025, the minimum wage of officials and public employees will be higher than the average minimum wage of enterprises in various regions.
- By 2030, the minimum wage of officials and public employees will be equal to or higher than the highest minimum wage of enterprises in various regions.
(2) For the enterprise sector
- From 2021, the State will periodically adjust the regional minimum wage level based on the recommendations of the National Wage Council. Enterprises will implement wage policies based on negotiations between employers and employees and their collective representatives; the State does not directly interfere in the wage policies of enterprises.
- Manage labor and wages in state-owned enterprises by the method of wage cost contracting linked to their production and business tasks until 2025, and aim to fully contract production and business tasks of enterprises by 2030.
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