Agreement on content regarding salary reform in Vietnam in Resolution 142/2024/QH15

Agreement on content regarding salary reform in Vietnam in Resolution 142/2024/QH15 (Image from Internet)

On June 29, 2024, Hanoi passed Resolution 142/2024/QH15 for the 7th Meeting, 15th National Assembly; which includes the agreement on content regarding salary reform in Vietnam in Resolution 142/2024/QH15 

Agreement on content regarding salary reform in Vietnam in Resolution 142/2024/QH15

Based on Conclusion 83-KL/TW dated June 21, 2024, from the Politburo and Report No. 329/BC-CP dated June 21, 2024, from the Government of Vietnam, the National Assembly agrees to implement the contents of salary reform; adjustment of retirees' pensions, social insurance benefits, preference allowances for those with meritorious service, and social allowances from July 1, 2024.

Specifically:

(1) Fully implement the two contents of salary reform in the business sector according to Resolution No. 27-NQ/TW dated May 21, 2018, the 7th Conference of the 12th Central Committee of the Communist Party, including: adjust the regional minimum wage as stipulated in the Labor Code (average increase of 6% to be applied from July 1, 2024); stipulate wage mechanisms for state-owned enterprises (to be applied from January 1, 2025).

(2) Implement the salary reform according to Resolution No. 27-NQ/TW in the public sector step by step, cautiously and securely, ensuring feasibility and contributing to improving the living standards of wage earners, assigning the Government of Vietnam:

- Implementing the contents that are clear and eligible for implementation, including: completing wage increment policies; supplementing bonus policies; stipulating sources of funds for implementing wage policies; completing wage and income management mechanisms;

- Adjusting the statutory pay rate from 1.8 million VND/month to 2.34 million VND/month (an increase of 30%) from July 1, 2024;

- For agencies and units currently applying special financial and income mechanisms at the Central level, the Government of Vietnam, relevant Ministries, and sectors will continue to review the entire legal framework to submit to competent authorities for consideration and decision on amending or abolishing the special financial and income mechanisms of the agencies and units being implemented appropriately before December 31, 2024; retain the difference between wages and additional income of June 2024 for officials and public employees with wages from July 1, 2024, after amending or abolishing special financial and income mechanisms.

In the interim period before amending or abolishing, the following will apply: From July 1, 2024, the monthly wage and additional income calculated according to the statutory pay rate of 2.34 million VND/month under special mechanisms ensure not exceeding the wages and additional income enjoyed in June 2024 (excluding the portion of wages and additional income due to the adjustment of position wage coefficient when increasing position or rank).

If according to the above principle, the wage and additional income from July 1, 2024, under special mechanisms is lower than the wage according to general regulations, wage policies by general regulations will apply;

- From July 1, 2024, increase by 15% the current pension and social insurance allowance (June 2024); for persons receiving pensions before 1995, if after the adjustment their benefit is less than 3.2 million VND/month, adjust to increase by 300,000 VND/month, those with benefits from 3.2 million VND/month to under 3.5 million VND/month adjust to 3.5 million VND/month; adjust the preferential allowance for those with meritorious services according to the standard preferential benefit from 2.055 million VND to 2.789 million VND/month (an increase of 35.7%), maintaining the current proportion of preferential allowances compared to the standard benefit; adjust the social allowance according to the standard social assistance level from 360,000 VND to 500,000 VND/month (an increase of 38.9%);

- Report to the National Assembly the implementation of item (2) at the 9th Meeting, 15th National Assembly.

(3) Assign the Standing Committee of the National Assembly to consider stipulating wages, policies for full-time National Assembly deputies, full-time People's Council deputies, officials and public employees, other workers of the National Assembly Office, and other subjects under the Communist Party's and State laws.

More details can be found in Resolution 142/2024/QH15 dated June 29, 2024.

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