Will the social insurance benefits for police and military personnel change with the salary reform if the statutory pay rate is abolished?
Will the Social Insurance Allowances for Police and Military Change with Salary Reform if the Statutory Pay Rate is Abolished?
According to Resolution 27-NQ/TW of 2018, the statutory pay rate and the current pay coefficient will be abolished, and a basic salary amount will be established as specified in the new salary scale.
Accordingly, after the salary reform, a new salary system will be developed and issued based on job positions, titles, and leadership roles for officials and public employees, replacing the current salary system; the transition from the old salary to the new salary will be ensured without reducing the current salary levels.
Currently, many allowance rates are tied to the statutory pay rate, including:
- Convalescence and health rehabilitation allowance after illness.- Lump-sum allowance for childbirth and adoption.- Convalescence and health rehabilitation allowance after maternity; funeral allowance.- Monthly survivor allowance.- ...
To ensure uniform implementation of the legal regulations after the salary reform, Section 6, Part III of Resolution 27/NQ-TW of 2018 proposes tasks to amend and improve laws related to social insurance and laws concerning salary policies in the public sector.
Based on the above-mentioned contents, the social insurance allowances currently associated with the statutory pay rate may be revised to align with the new salary policies after the salary reform, expected from July 1, 2024.
In Submission 527/TTr-CP of the Government of Vietnam on the Draft Law on Social Insurance (Amendment) dated October 10, 2023, the Government of Vietnam proposes to revise the allowances associated with the statutory pay rate towards specifying them as absolute amounts (equivalent to current amounts), and stipulating adjustments to these amounts when the Government of Vietnam adjusts pensions and social insurance allowances.
When the 2024 salary reform is implemented, the allowances associated with the statutory pay rate will be changed.
Will the Social Insurance Allowances for Police and Military Change with Salary Reform if the Statutory Pay Rate is Abolished? (Image from the Internet)
How is the Roadmap for Salary Reform according to Resolution 27?
Based on Resolution 27-NQ/TW of 2018, the roadmap for salary reform is planned as follows:
From 2021 to 2025 and Vision to 2030
For the Public Sector
- From 2021, apply new unified salary policies for officials and public employees, and armed forces throughout the entire political system.- In 2021, the minimum salary of officials and public employees will be equivalent to the average minimum wage of enterprise sectors in various regions.- Periodically adjust salary levels in accordance with the consumer price index, economic growth rate, and state budget capacity.- By 2025, the minimum salary of officials and public employees will be higher than the average minimum wage of enterprise sectors in various regions.- By 2030, the minimum salary of officials and public employees will be equal to or higher than the highest minimum wage of enterprise sectors in the highest region.
For the Enterprise Sector
- From 2021, the State will periodically adjust regional minimum wages based on recommendations from the National Wage Council. Enterprises will implement salary policies based on negotiations and agreements between employers and employees and their collective representatives; the State will not directly intervene in enterprise salary policies.- Manage labor and salaries in state-owned enterprises by assigning wage cost responsibilities related to business tasks until 2025, and towards assigning business task responsibilities by 2030.
What are the Guiding Principles for Salary Reform?
Resolution 27-NQ/TW of 2018 outlines the following guiding principles for salary reform:
- Salary policy is a crucial aspect of the socio-economic policy system. Salaries must be the primary source of income to ensure the livelihood of employees and their families; appropriate salary payments are investments in human resource development, motivating productivity improvements and work efficiency among employees, contributing significantly to social progress and equity, ensuring socio-political stability; and enhancing growth quality and sustainable development.- Salary policy reform must be comprehensive, systemic, synchronous, inherit and promote existing strengths, effectively rectify current limitations and inadequacies, adhere to labor distribution principles and market economy objective laws, increase productivity as the basis for salary increases; meet international integration requirements; and have a roadmap fitting the socio-economic development and resources of the country.- In the public sector, the State pays officials and public employees, and armed forces based on job positions, titles, and leadership roles, in line with State resources and public service revenue, ensuring reasonable correlation with market labor wages; enforce adequate reward and incentives based on productivity, motivating quality and efficiency in work, public ethics, and professional ethics, contributing to the integrity and efficiency of the political system.- In the enterprise sector, wages are the price of labor, formed through agreements between employees and employers in a market mechanism with State management. The State sets the minimum wage as the lowest floor to protect disadvantaged workers and as a basis for wage negotiations and labor market regulation. Wage distribution is based on labor results and business efficiency, ensuring harmonious, stable, and progressive labor relations in enterprises.- Salary policy reform is an objective requirement and an essential task, requiring strong political determination in building a socialist rule-of-law state and perfecting the socialist-oriented market economy; promoting administrative reforms; re-organizing the political system towards streamlined, effective, and efficient operation; reducing staff numbers; innovating organizational and management systems to enhance the quality and efficiency of public service providers.
LawNet