03 Updates on Salaries and Social Insurance from 2021 Official Public Employees Need to Know

1. Abolition of statutory pay rate, allowances, and implementation of 5 new salary tables

Currently, the salaries of officials and public employees are calculated based on the statutory pay rate and salary coefficient. However, according to the provisions of Resolution 27-NQ/TW, starting from 2021, the statutory pay rate and salary coefficient will be abolished, and salary policies will be developed based on specific monetary amounts according to the job position.

At the same time, this Resolution also stipulates the abolition of seniority allowances (except for the military, police, and cryptographic sectors), position allowances, duty allowances, and hazardous work allowances (since hazardous and dangerous working conditions have been included in professional allowances)... and the merging of professional preferential allowances, professional responsibility allowances, and hazardous and dangerous allowances; merging special allowances, attraction allowances, and long-term working subsidies in regions with particularly difficult socio-economic conditions into regional special difficulty work allowances.

The above contents are based on Sections 3.1.c and 3.1.d Part II of Resolution 27-NQ/TW issued on May 21, 2018.

2. Salary increase for officials and public employees

According to the reform content in Section 2.2 Part II of Resolution 27-NQ/TW, starting from 2021, a new unified salary policy will be applied for officials and public employees, armed forces throughout the entire political system. Specifically, the objective of implementing the salary policy for officials and public employees is regulated as follows:

- In 2021, the lowest salary of officials and public employees will be equal to the lowest average salary in regions of the enterprise sector.- Periodically increase the salary level in line with the consumer price index, economic growth rate, and state budget capacity.- By 2025, the lowest salary of officials and public employees will be higher than the lowest average salary in regions of the enterprise sector.- By 2030, the lowest salary of officials and public employees will be equal to or higher than the lowest salary of the highest region in the enterprise sector.

3. Increase retirement age

On May 23, 2018, the 12th Central Committee issued Resolution 28-NQ/TW on the reform of social insurance policies.

One of the noteworthy contents is the regulation to adjust the retirement age according to the objective of gradually increasing the general retirement age starting from 2021, while narrowing the gender gap in retirement age regulations; for special professions, workers are entitled to retire 5 years earlier or later than the general retirement age.

The above content is based on Section 7 Part III of Resolution 28-NQ/TW.

Duy Thinh

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