Will job-based salaries for officials when implementing salary reform in Vietnam be higher than current salaries?

Will job-based salaries for officials when implementing salary reform in Vietnam be higher than current salaries? T.A - Binh Duong.

Will job-based salaries for officials when implementing salary reform in Vietnam be higher than current salaries?

Based on subsection 3.1, Section 3, Part II of Resolution 27/NQ-TW of 2018, the content of reform for the military and police forces is outlined as follows:

DIRECTING VIEWPOINTS, OBJECTIVES AND CONTENT OF REFORM
Reform content
3.1. For officials, public employees and armed forces (public sector)
a) Develop a new salary structure including: Base pay (accounting for about 70% of the total salary budget) and allowances (accounting for about 30% of the total salary budget). Additional bonus (bonus fund equals about 10% of the year's total salary fund, excluding allowances).
b) Develop and issue a new payroll system based on job position, title and leadership position to replace the current payroll system; Convert old salary to new salary, guaranteed not to be lower than current salary, including:
...

Accordingly, according to the spirit of the reform content in Resolution 27/NQ-TW of 2018, the salary according to job position for officials when reforming the salary in 2024 must be guaranteed not to be lower than the current salary.

After salary reform, there will be 2 new salary tables for officials, including:

- Develop a position salary table applicable to officials and public employees holding leadership positions (elected and appointed) in the political system from central to commune level according to the principles:

(1) Position salary must reflect hierarchy in the political system; If a person holds a leadership position, he or she will receive a salary according to that position. If a person holds many positions, he or she will receive the highest salary for the position; Holding equivalent leadership positions will receive the same salary; The position salary of a superior leader must be higher than the position salary of a subordinate leader;

(2) Regulate a salary level for each equivalent position; Do not classify ministries, branches, departments, committees and equivalents at the Central level when building the salary table for positions at the Central level; does not differentiate between different salary levels for the same leadership position according to the classification of local administrative units, but is implemented through allowances. The classification of equivalent leadership positions in the political system to design the position salary schedule is decided by the Politburo after reporting to the Central Executive Committee.

- Develop a professional and professional salary table according to official ranks and official professional titles, applicable generally to officials and public employees who do not hold leadership positions; Each official rank and professional title has many salary levels according to the principle:

The same level of job complexity means the same salary; Working conditions are higher than normal and job incentives are implemented through job-based allowances; Rearrange the rank groups and number of ranks in official ranks and official professional titles, encourage officials and public employees to improve their professional qualifications and skills. Appointment to official ranks or public employee professional titles must be linked to the job position and structure of official ranks and public employee professional titles by the agency, organization or unit managing officials and public employees.

Will job-based salaries for officials when implementing salary reform in Vietnam be higher than current salaries?

What is the new salary structure for officials after the salary reform in Vietnam in 2024?

Based on subsection 3, Section II of Resolution 27/NQ-TW of 2018, it states the contents of salary reform for officials, public employees and the armed forces (public sector).

DIRECTING VIEWPOINTS, OBJECTIVES AND CONTENT OF REFORM
Reform content
3.1. For officials, public employees and armed forces (public sector)
a) Develop a new salary structure including: Base pay (accounting for about 70% of the total salary budget) and allowances (accounting for about 30% of the total salary budget). Additional bonus (bonus fund equals about 10% of the year's total salary fund, excluding allowances).

In particular, the salary structure of officials when implementing salary reform will include:

- Base pay (accounting for about 70% of total salary budget);

- Allowances (accounting for about 30% of total salary budget);

- Additional bonus (bonus fund equals about 10% of the year's total salary fund, excluding allowances).

Thus, it can be seen that the salary structure of officials includes the above items. In addition, build and issue a new payroll system based on job position, title and leadership position to replace the current payroll system; Change the old salary to the new salary, ensuring it is not lower than the current salary.

Vietnam: When will salary reform be implemented according to Resolution 27?

On the afternoon of September 19, 2023, National Assembly Chairman Vuong Dinh Hue delivered a closing speech at the Vietnam Socio-Economic Forum 2023, which emphasized the early implementation of fundamental wage policy reform in 2024.

The National Assembly Chairman also emphasized the early implementation of fundamental wage policy reform in 2024. This is also a boost for the labor market, contributing to stimulating domestic consumption demand.

"This is a reform, not a normal salary increase. If nothing changes, the time we can apply it is from July 1, 2024."

Thus, the salary policy reform is expected to apply from July 1, 2024.

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