Will regulate the specific salary amount for officials after removing the salary coefficient and statutory pay rate, right?
Will specific salary amounts be regulated for officials after removing the salary coefficient and statutory pay rate?
When implementing the wage reform as expected (Closing remarks of the Vietnamese Socio-Economic Forum 2023 by Chairman of the National Assembly Vuong Dinh Hue) on July 1, 2024, the statutory pay rate in 2024 will change, directly affecting the salaries of officials and public employees as follows:
One notable content of the wage reform in Resolution 27/NQ-TW in 2018 is the abolition of the statutory pay rate and current salary coefficient while simultaneously creating a new pay scale with specific amounts.
After abolishing the current salary calculation method and creating a new pay scale with specific amounts, the new salary structure for officials and public employees will include the following components:
- Basic salary (accounting for 70% of the total salary fund of officials and public employees)
- Allowances (accounting for 30% of the total salary fund)
- Bonuses (accounting for 10% of the total annual salary fund, excluding allowances)
The new pay scale, after removing the statutory pay rate and salary coefficient for officials and public employees, includes:
- Creating a position-based pay scale applicable to officials and public employees holding leadership positions (elected and appointed) within the political system from the Central level to the commune level based on the following principles:
+ The position salary level must reflect the hierarchy within the political system; the salary is according to the highest held leadership position if a person holds multiple positions; those holding equivalent leadership positions receive the same position salary; the position salary of leaders at a higher level must be higher than that of leaders at a lower level;
+ Specifying a position salary level for each type of equivalent positions; no differentiation for ministries and central authorities, committees, and equivalent bodies at the Central level when creating the position-based pay scale; no differentiation in position salaries for the same leadership titles according to administrative unit classification at the local level, which will be implemented through allowance policies.
The classification of equivalent leadership positions within the political system to design the position-based pay scale is decided by the Politburo after reporting to the Central Executive Committee.
- Creating a professional pay scale according to the official ranks and occupational titles of public employees applied universally to officials and public employees without leadership titles; each official rank and occupational title of a public employee will have multiple salary grades based on the principle:
For equivalent job complexity, the salary will be the same; for working conditions higher than normal and professional incentives, this will be executed through professional allowance policies; reorganizing the group ranks and number of grades in the official ranks and occupational titles of public employees, encouraging officials and public employees to enhance their professional and expertise levels.
The appointment to official ranks or occupational titles of public employees must be linked with job positions and the structure of official ranks, occupational titles of public employees managed by the agencies, organizations, and units that manage officials and public employees.
Will specific salary amounts be regulated for officials after removing the salary coefficient and statutory pay rate?
What are the elements for constructing the new pay scale for officials and public employees?
Based on point c, clause 3.1, Section II of Resolution 27/NQ-TW in 2018, there are 05 main elements to construct the new pay scale for officials and public employees as follows:
- Abolishing the statutory pay rate and current salary coefficient, creating the basic salary as specific amounts in the new pay scale.
- Implementing unified labor contract policies according to the provisions of the Labor Code (or service provision contracts) for those performing administrative and service work (requiring training below intermediate level), not applying the officials and public employees pay scale for these subjects.
- Determining the lowest salary level of officials and public employees in the public sector as the salary level for work requiring intermediate training (level 1), which is no less than the minimum salary of trained workers in the enterprise sector.
- Expanding wage relationships as the basis for determining specific salary levels in the pay scale system, gradually approaching the wage relationships of the enterprise sector in line with the resources of the State.
- Perfecting policies for regular and early salary grade promotions for officials and public employees and the armed forces in accordance with the new pay scale's regulations.
Are bonuses for officials and public employees exclusive of allowances under the new salary policies?
Based on the reform content set out in subitem 3, Section II of Resolution 27/NQ-TW in 2018:
3. Reform content
3.1. For officials and public employees and the armed forces (public sector)
a) Designing a new salary structure consisting of: Basic salary (accounting for about 70% of the total salary fund) and various allowances (accounting for about 30% of the total salary fund). Adding bonuses (bonus fund accounts for about 10% of the total annual salary fund, excluding allowances).
The reform content clearly outlines the new salary structure for officials and public employees, which includes:
- Basic salary (accounting for about 70% of the total salary fund)
- Allowances (accounting for about 30% of the total salary fund)
- Bonuses, with the provision that the bonus fund accounts for about 10% of the total annual salary fund, excluding allowances.
Thus, it can be seen that the bonus portion for officials and public employees in the new salary structure is determined based on the total annual salary fund and excludes allowances.
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