Will the base salary and salary coefficients for cadres, civil servants, and public employees under the salary reform policy be abolished from July 1, 2024 in Vietnam?

Will the base salary and salary coefficients for cadres, civil servants, and public employees under the salary reform policy be abolished from July 1, 2024 in Vietnam?

As prescribed in Clause 3, Article 2 of Resolution 27-NQ/TW in 2018, regarding civil servants, public servants, and members of the armed forces, the content of the reform includes a number of issues related to the design of the new salary scale based on the following grounds:

GUIDING PRINCIPLES, OBJECTIVES AND CONTENT OF REFORM

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3. Content of reform

3.1. For cadres, civil servants, public employees, and members of the armed forces (public sector)

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c) Identify specific factors to design a new salary scale

- Abolish the current base salary and salary coefficients, and build a basic salary in the form of a specific amount in the new salary scale.

- Implement a unified labor contract regime under the Labor Code (or service contract) for those who do auxiliary and service work (require less than an associate degree), and do not apply the civil servant salary scale to these individuals.

- Determine that the lowest salary of civil servants in the public sector is the salary of those who do work that requires an associate degree (level 1), which is not lower than the lowest salary of workers with training in the enterprise sector.

- Expand the salary relationship as a basis for determining specific salaries in the salary system, gradually approaching the salary relationship of the enterprise sector in accordance with the resources of the State.

- Improve the regime for regular and early promotion for cadres, civil servants, public employees and members of the armed forces in accordance with the provisions of the new salary scale.

As regulations above, it is expected that the base salary and salary coefficients will be abolished from July 1, 2024, when the salary reform policy is implemented. At the same time, a basic salary in the form of a specific amount in the new salary scale will be built.

Will the base salary and salary coefficients for cadres, civil servants, and public employees under the salary reform policy be abolished from July 1, 2024 in Vietnam? - Source: Internet

Is it expected that the lowest salary of cadres, civil servants, and public employees will be higher than the average lowest salary in the regions of the enterprise sector by 2025 in Vietnam?

As prescribed in Clause 2.2, Article 2 of Resolution 27-NQ/TW in 2018, the specific objectives of the salary reform policy are as follows:

2.2. Specific objectives

(1) From 2018 to 2020

(a) For the public sector

- Continue to adjust the base salary according to the resolution of the National Assembly, ensuring that it is not lower than the consumer price index and is in line with the economic growth rate; do not add new allowances by occupation.

- Complete the construction and promulgation of the new salary system in accordance with the content of the salary reform policy, linked to the roadmap for administrative reform, streamlining of staff; renewal, reshuffle the organization of the system of government; renewal of public non-profit units according to the resolutions of the Central Committee.

(b) For the enterprise sector

- Implement the adjustment of the minimum wage region in accordance with the socio-economic development situation, the ability to pay of enterprises so that by 2020 the minimum wage ensures the minimum living standard of workers and their families.

- Implement a pilot program for labor management and wages for state-owned enterprises in accordance with the contents of the approved salary reform proposal.

(2) From 2021 to 2025 and the vision to 2030

(a) For the public sector

- From 2021, apply a unified salary system for cadres, civil servants, public employees, military personnel in the entire political system.

- In 2021, the minimum salary of cadres, civil servants, public employees, and military personnel is equal to the average minimum salary in the regions of the enterprise sector.

- Periodically implement salary increases in line with the consumer price index, economic growth rate, and the ability of the State budget.

- By 2025, the minimum salary of cadres, civil servants, public employees, and military personnel will be higher than the average minimum salary in the regions of the enterprise sector.

- By 2030, the minimum salary of cadres, civil servants, public employees, and military personnel will be equal to or higher than the minimum salary of the highest region of the enterprise sector.

Therefore, it is expected that when the salary reform policy is implemented, the minimum salary of cadres, civil servants, and public employees will be higher than the average minimum salary in the regions of the enterprise sector by 2025.

In addition, by 2030, the minimum salary of cadres, civil servants, and public employees will be equal to or higher than the minimum salary of the highest region of the enterprise sector.

What is the current base salary for cadres, civil servants, and public employees in Vietnam?

According to Clause 2 Article 3, of Decree 24/2023/ND-CP, the base salary for cadres, civil servants, and public employees is as follows:

Base salary

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2. From July 1, 2023, the base salary is VND 1,800,000/month.

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Therefore, the current base salary for cadres, civil servants, and public employees is VND 1,800,000. This salary is effective from July 1, 2023.

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