All 8 New Points on Wage Reform in Resolution 27-NQ/TW

1. Continue Adjusting and Increasing the Statutory Pay Rate and Regional Minimum Wage

For officials and public employees and armed forces: From 2018 to 2020, continue adjusting and increasing the statutory pay rate. By 2030, the lowest salary of officials and public employees will be equal to or higher than the lowest salary in the highest region of the business sector.

For enterprise employees, adjust and increase the regional minimum wage so that by 2020, the minimum wage ensures a minimum living standard for employees and their families. From 2021, continue to adjust the regional minimum wage periodically.

2. Salaries of Officials and Public Employees Will Be Designed with a New Structure

Including: Basic salary (accounting for about 70% of the total salary fund) and allowances (accounting for about 30% of the total salary fund). Add bonuses (the bonus fund is about 10% of the total annual salary fund, excluding allowances).

3. Develop New Salary Scales Based on Positions and Roles

Including 05 salary scales as follows:

- 01 salary scale for leadership positions;- 01 professional and vocational salary scale for officials and public employees not holding leadership positions;- 3 salary scales for armed forces: 01 salary scale for military officers, police officers, and officers; 01 salary scale for professional soldiers, technical officers, and police officers; and 01 salary scale for defense workers and police workers.

4. Abolish the Statutory Pay Rate, Salary Coefficient, and Develop a Specific Basic Salary

5. Implement Labor Contract Policies for Those Performing Administrative and Supportive Tasks

6. Abolish and Consolidate Multiple Allowances for Officials and Public Employees

Resolution 27-NQ/TW abolishes many allowances such as: seniority allowance, leadership position allowance, party and socio-political group work allowance, service allowance, and hazardous and dangerous work allowance.

At the same time, consolidate the following allowances: Consolidate preferential allowances, professional responsibility allowances, and hazardous and dangerous work allowances; consolidate special allowances, attraction allowances, and long-term service allowances in regions with particularly difficult socio-economic conditions into allowances for work in especially difficult regions.

7. Abolish Multiple Non-Salary Payments

To be specific, the following payments sourced from the state budget are abolished: meeting allowances; allowances for drafting legal documents, proposals; workshops, etc.

8. Enterprises Have Full Autonomy in Wage Policies

Enterprises (including state-owned enterprises) have the autonomy to decide wage policies and pay wages to employees not lower than the minimum wage.

The state only announces the regional minimum wage by month and by hour and supports the provision of labor market information without directly interfering with enterprise wage policies.

See the full content at Resolution 27-NQ/TW.

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