What are the effects of COVID-19 on the salary policies applicable to Vietnamese officials and public employees?

What are the effects of COVID-19 on the salary policies applicable to Vietnamese officials and public employees? (Illustrative photo)​

Due to the impact of COVID-19, the reform of the salary policies applicable to Vietnamese officials, public employees, and the armed forces as per Resolution 27-NQ/TW will be postponed to July 1, 2022 (instead of 2021 as originally planned). The effects on salary policies applicable to Vietnamese officials and public employees are as follows:

Firstly, the salaries paid to officials and public employees in 2021 will still be calculated according to the statutory pay rate

According to Section 3.1.c Part II of Resolution 27-NQ/TW, effective from 2021, the statutory pay rate and the current salary coefficient will be abolished to establish a base pay set in the new payroll applicable to officials and public employees. The specific salary amount will be determined based on the job position of each individual.

However, due to the Covid-19 impact, at the 13th Central meeting of the 12th Central Committee of the Communist Party of Vietnam from October 5-9, the Central Committee of the Communist Party of Vietnam agreed with the proposal of the CPV Personnel Committee of the Government of Vietnam to implement the new salary policies from July 1, 2022 (instead of 2021) for officials and public employees, armed forces, and employees working at enterprises under Resolution 27-NQ/TW. Therefore, in 2021, the statutory pay rate has not been abolished. Therefore, the salaries paid to officials and public employees will still be calculated according to the current formula.

Secondly, the new payroll system applicable to officials and public employees will not be applied yet

According to Resolution 27-NQ/TW, from 2021, five new payrolls will be prepared and issued based on job positions, leading titles, and positions to replace the current payroll system; the old salaries will be changed and graded to the new salaries ensuring that they are not lower than the current salaries, including:

- Payroll applicable to officials and public employees holding leading positions in the political system from the central to the commune level;

- Professional and occupational payrolls according to the official's grades and public employee's professional titles applicable to officials and public employees not holding leading positions;

- Payroll applicable to military officers, police officers, and non-commissioned officers in the police force (according to positions, titles, and military ranks or police ranks);

- Payroll applicable to professional servicemen and police technicians;

- Payroll applicable to defense workers and police workers (maintaining the salary correlation between the armed forces and administrative officials).

Thus, in 2021, new payrolls according to job positions, leading titles, and positions to replace the current payroll system have been applied to officials and public employees. At the same time, the payrolls applicable to senior experts, full-time officials at communes, wards, and towns, and staff working in state agencies and state public service providers according to Decree 204/2004/ND-CP will continue to apply.

Thirdly, the seniority allowance for officials and public employees will not be abolished yet

In line with Resolution 27-NQ/TW, one of the salary policy reform contents is to abolish the seniority allowance for officials and public employees. To restructure the current allowance policies ensuring the total allowance fund does not exceed 30% of the total salary fund, the seniority allowance will be abolished (except for the military, police, and cryptographic forces to ensure salary correlation with officials); leadership position allowances (as leadership positions within the political system will implement position-based salaries); allowances for CPV, trade union, and socio-political activities; official duty allowances (as these have been included in the base pay); hazardous work allowances (as these have been included in the occupational allowances).

Therefore, with the postponement of salary reform to July 1, 2022, in 2021, officials and public employees will still receive seniority allowances, leadership position allowances, allowances for party, union, and socio-political work; official duty allowances, hazardous work allowances as currently in place.

Fourthly, the application of a new salary structure for officials and public employees from 2021 will be postponed to July 1, 2022

According to Point a, Clause 3.1, Part II of Resolution 27-NQ/TW, the Central Committee has introduced the salary reform content for officials and public employees and the armed forces. Specifically, the new salary structure includes:

- Base pay (accounting for about 70% of the total salary fund);

- Allowances (accounting for about 30% of the total salary fund);-

Bonuses (a bonus fund accounting for about 10% of the total annual salary fund, excluding allowances).

Thus, the application of this new salary structure will be postponed to July 1, 2022, as decided by the Central Committee of the Communist Party of Vietnam at the 13th meeting of the 12th Central Committee of the Communist Party of Vietnam.

Fifthly, the applicable statutory pay rate in 2021 of officials and public employees remains unchanged at 1,490,000 VND/month

In the new resolution adopted at the 10th meeting of the 14th National Assembly, the National Assembly of Vietnam assigned the Government of Vietnam to implement several financial and state budget management measures for 2021. Notably the applicable statutory pay rate in 2021 will not be adjusted upwards. Also related to the statutory pay rate, through the resolution, in 2020, there will be no increase to the statutory pay rate, pensions, social insurance benefits, monthly allowances (for beneficiaries funded by the state budget), and preferential allowances for those with meritorious services to the revolution. Resources will be concentrated on COVID-19 prevention and control, overcoming the consequences of natural disasters, the implementation of issued social security policies, and assurance of national defense, security, and foreign affairs.

Thus, the applicable statutory pay rate in 2021 will not be increased and will remain at 1,490,000 VND/month as regulated by Decree 38/2019/ND-CP. As a result, the salaries paid to officials and public employees will remain at the current level.

Ty Na

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