Good News Regarding Salaries and Allowances for Officials and Public Employees

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1. Increase in statutory pay rate from July 1, 2019

According to Clause 8 Article 4 Resolution 70/2018/QH14, the statutory pay rate applied to officials and public employees will increase to 1,490,000 VND from July 1, 2019.

2. Increase in additional pay for concurrent positions of commune-level officials

The Government of Vietnam has just promulgated Decree 34/2019/ND-CP with new regulations on additional pay for concurrent positions of commune-level officials, specifically:

- Commune-level officials concurrently holding a position that reduces the total number of officials by one person compared to the maximum stipulated are entitled to receive an additional pay of 50% of the salary grade 1 (current regulation allows 20% of the salary) plus any leadership position allowance (if any) for the concurrently held position;

- For commune-level officials receiving a pension or labor loss allowance, in addition to pension or labor loss allowance, they are entitled to receive an additional pay of 100% of the salary grade 1 (current regulation allows 90% of the salary) for the position held.

After a period of 5 years, if they complete the assigned tasks and are not disciplined during this period, they are entitled to 100% of the salary grade 2 of the position held.

See detailed content in Decree 34/2019/ND-CP, effective from May 26, 2019.

3. Abolishment of extra-salary allowances

According to Subsection 4 Section I of Resolution 27-NQ/TW on the reform of wage policies for officials and public employees, the abolishment of extra-salary allowances derived from the state budget is stipulated, such as meeting allowances, allowances for drafting legal documents, project allowances, workshops, etc. The implement of salary budget tied to downsizing staff objectives for agencies and units.

More details can be found in Resolution 27-NQ/TW, issued on May 21, 2018.

4. Abolishment of the statutory pay rate and current salary coefficients

Resolution 27-NQ/TW also stipulates the abolishment of the statutory pay rate and current salary coefficients, moving towards establishing basic salary in specific cash amounts according to the following 5 new salary scales:

- Position salary scale applied to officials and public employees holding leadership positions (elected and appointed) in the political system from the central to commune level;

- Professional and specialized salary scale according to official rank and public employee professional title, applied generally to officials and public employees not holding leadership positions;

- Military officer, police officer, professional non-commissioned officer salary scale (according to position, title, and rank);

- Salary scale for professional soldiers and specialized technicians in the police force;

- Salary scale for national defense workers and police workers.

5. Abolishment and consolidation of numerous existing allowances

This is also a notable content stipulated in Resolution 27-NQ/TW, specifically:

- Abolishment of seniority allowance (except for the military, police, and cipher); leadership position allowance (as positions in the political system implement position-based salary arrangement); allowances for party and mass organization work; public service allowance (as it has been incorporated into the basic salary); hazardous and dangerous allowance (as conditions of hazardous and dangerous work have been incorporated into the occupational allowance).

- Consolidation of preferential occupational allowance, responsibility occupational allowance, and hazardous and dangerous allowance; consolidation of special allowances, attraction allowances, and long-term working allowances in areas with extremely difficult socio-economic conditions into allowances for working in extremely difficult areas.

Duy Thinh

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