What is the expected highest salary of civil servants and public employees from July 1, 2024 in Vietnam?

What is the expected highest salary of civil servants and public employees from July 1, 2024 in Vietnam?

From July 1, 2024, the salary reform policy will be implemented according to Resolution 27-NQ/TW in 2018.

According to this regulation, the minimum salary for civil servants and public employees will increase significantly compared to the current starting salary of 3.5 million VND for civil servants and public employees with intermediate qualifications and a salary coefficient of 1.86.

The average salary for civil servants and public employees will also have an increased starting coefficient from 2.34 to 2.68. Currently, civil servants and public employees with university qualifications have a starting salary of over 4.2 million VND per month.

The highest salary for civil servants and public employees corresponds to grade 3 of senior experts (equivalent to ministerial salary) and will be expanded from a coefficient of 10 to 12. Therefore, the expected new highest salary for civil servants and public employees will exceed the current figure of 18 million VND.

In addition to this basic salary, the new salary system will also rearrange various allowances, accounting for a maximum of 30% of the total salary fund (which may be higher or lower than 30%) and 10% for bonuses.

If the basic salary, allowances, and bonuses are taken into account, the average salary for civil servants and public employees after the salary reform will increase by more than 32% compared to the average income of salary earners (7.5 million VND per month).

Therefore, the expected highest salary for civil servants and public employees from July 1, 2024 will exceed 18 million VND.

Source: Government Electronic Portal.

What is the expected highest salary of civil servants and public employees from July 1, 2024 in Vietnam? (Image from the Internet)

Will the salary table by job position in 2024 eliminate the base salary level in Vietnam?

Based on the provisions of Section 3.1, Item 2 of Resolution 27-NQ/TW in 2018 regarding salary reform, the following content is specified:

Content of reform

3.1. For officials, civil servants, public employees, and armed forces personnel (public sector)

.....

c) Determine specific factors to design the new salary table

- Abolish the current basic salary level and salary coefficient, and establish a specific amount for the new basic salary in the salary table.

- Implement unified labor contract regime according to the provisions of the Labor Code (or service contract) for those performing surplus or service jobs (requiring training below intermediate level), not applying the civil servant salary table for these individuals.

- Determine the minimum salary for civil servants in the public sector as the salary of those performing jobs requiring intermediate level training (grade 1), not lower than the minimum salary of trained workers in the business sector.

- Expand the salary relationship as a basis for determining specific salary amounts in the salary table, gradually approaching the salary relationship in the business sector that is suitable for the state's resources.

- Improve the regular salary increment and early salary increment regime for officials, civil servants, public employees, and armed forces personnel in accordance with the provisions of the new salary table.

.....

Therefore, to design the 2024 job position salary table for officials, civil servants, and public employees, the current basic salary level will be abolished and replaced with a specific amount in the new salary table in Vietnam.

What is the current statutory pay rate level?

According to Article 3 of Decree 24/2023/ND-CP, the statutory pay rate is regulated as follows:

Statutory pay rate

1. The statutory pay rate shall be used as the basis for:

a) Determining the levels of salaries in payrolls, allowances and other benefits as per the law with regard to individuals as defined in Article 2 of this Decree;

b) Determining the levels of subsistence allowances as per the law;

c) Determining contributions and benefits concerning the statutory pay rate.

2. From July 01, 2023, the statutory pay rate is VND 1.800.000 per month.

3. The authorities and entities that are implementing the specific financial and income mechanism at central level adopted by competent authorities for certain authorities and administrative units shall continue implementing this mechanism until the comprehensive reform of salary policies under the Resolution No. 27-NQ/TW dated May 21, 2018 of the 7^th Meeting of the 12^th Central Executive Committee is implemented; the increase in monthly salaries and incomes calculated using the statutory pay rate of VND 1.800.000/month from July 01, 2023 must not exceed the average increase in salaries and incomes in 2022 (excluding the increase in salaries and incomes resulted from adjustment of rank- or grade-based pay rate).

4. The Government shall request the National Assembly to consider adjusting statutory pay rate in conformity with the capacity of the state budget, consumer price index and national economic growth rate.

Currently, the statutory pay rate is 1,800,000 VND per month. This statutory pay rate applies until June 30, 2024.

Best regards!