Will the minimum salary be increased after the salary reform in 2024 in Vietnam?
Will the minimum salary be increased after the salary reform in 2024 in Vietnam?
Will the minimum salary be increased after the salary reform in 2024 in Vietnam?
According to Resolution 27-NQ/TW in 2018 of the Central Committee of the Communist Party of Vietnam, the 2024 salary reform is scheduled to be implemented from July 1, 2024. Specifically, according to the Resolution, the current minimum salary and salary coefficient are expected to be abolished, and instead, a basic salary will be built with a specific amount in the new salary table.
Specifically, it is expected to build 5 new salary tables according to the position as follows:
- 1 salary table applicable to officials, civil servants, and public employees holding leadership positions (elected and appointed) in the political system from the Central to the commune level.
- 1 professional and technical salary table according to civil service ranks and public service occupational titles applicable to civil servants and public employees who do not hold leadership positions.
- 3 salary tables for the armed forces, including:
+ 1 salary table for military officers, officers, and non-commissioned officers of the police (according to position, title, and military rank or rank);
+ 1 salary table for professional and technical soldiers, police;
+ 1 salary table for national defense workers, police workers (in which the salary ratio of the armed forces to civil servants is maintained as it is today).
In conclusion, after the 2024 salary reform according to Resolution 27-NQ/TW in 2018, the minimum salary will be abolished and there is a possibility that there will be no increase in the minimum salary in 2024.
Will the minimum salary be increased after the salary reform in 2024 in Vietnam? - Source: Internet
What is the current statutory pay rate in Vietnam?
Pursuant to Article 3 of the Decree 24/2023/NĐ-CP stipulating statutory pay rate 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.
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As regulations above, from July 01, 2023, the statutory pay rate is VND 1.800.000 per month.
Who shall be applied with the statutory pay rate in Vietnam?
Pursuant to Article 2 of the Decree 24/2023/NĐ-CP stipulating entities applied with the statutory pay rate in Vietnam as follows:
- Cadres and civil servants from central echelon to district level prescribed in Clause 1 and Clause 2 Article 4 of the Law on Cadres and civil servants in 2008 (as amended in the Law on amendments to the Law on Cadres and civil servants and the Law on Public Employees in 2019).
- Cadres and civil servants at commune level prescribed in Clause 3 Article 4 of the Law on Cadres and civil servants in 2008 (as amended in the Law on amendments to the Law on Cadres and civil servants and the Law on Public Employees in 2019).
- Public employees working in public sector entities prescribed in Law on Public Employees in 2010 (as amended in the Law on amendments to the Law on Cadres and civil servants and the Law on Public Employees in 2019).
- Employees who work under employment contracts as prescribed in the Government’s Decree 111/2022/NĐ-CP dated December 30, 2022 on contracts of employment for certain tasks in administrative units and public sector entities, and are eligible for, or have agreed under the signed employment contracts on, salary payment according to the Government’s Decree 204/2004/NĐ-CP dated December 14, 2004 on pay policy for cadres, civil servants, public employees and armed forces.
- Employees on state regular payroll in state-funded associations as defined in Government's Decree 45/2010/NĐ-CP dated April 21, 2010 on organization, operation and management of associations (as amended in the Government's Decree 33/2012/NĐ-CP dated April 13, 2012).
- Commissioned officers, professional soldiers, non-commissioned officers, soldiers and national defense workers and public employees, contractual employees in the People's Army of Vietnam.
- Commissioned officers, non-commissioned officers on payroll, non-commissioned officers, conscript soldiers, public security workers and contractual employees in the People’s Police of Vietnam.
- Employees working in cryptography organizations.
- Part-time employees in communes, hamlets or neighborhoods.
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