Vietnam: Abolishment on some allowances of officials and public employees from July 01, 2022

According to the spirit of the Resolution No. 27/NQ-TW on salary policy reform for officials, public employees, armed forces and employees in enterprises, in the near future, many incomes of officials and public employees will be abolished.

Particularly, Resolution No. 27/NQ-TW of Vietnam Government states clearly that there will be abolishment on seniority allowance (except for the army, police, and cipher); allowance for leadership position; allowance for the work of the Communist Party and socio-political organizations; public service allowance; toxic and dangerous allowance.

It is expected that these allowances abolishment will be implemented in 2021, however, due to the impact of the Covid-19 epidemic, at the 13th Plenum of the Central Committee, the Central Executive Committee agreed with the proposal of the Vietnam Government's Party Personnel Committee on the time to officially implement the new salary system for officials and public employees, which is from July 1, 2022 instead of 2021, as the spirit of Resolution No. 27/NQ-TW of Vietnam Government.

Thus, these following allowances will be abolished from July 01, 2022 as expected:

- Seniority allowance (except for the army, police, and ciphers to ensure the salary correlation with officials).

- Allowance for leadership position (by the leadership titles in the political system to arrange the position salary).

- Allowance for party work, socio-political organizations; service allowance (due to being included in the basic salary).

- Toxic and dangerous allowance (due to the inclusion of working conditions with toxic and dangerous elements into the allowance according to occupation).

Besides, according to the Resolution No. 27/NQ-TW, non-salary expenditures of officials and public employees originating from the state budget will also be abolished from July 1, 2022, such as: meeting gratuities; compensation for the formulation of legal documents and schemes; seminar…

Moreover, the Resolution No. 27/NQ-TW also states clearly that, in addition to abolishing a number of allowances and non-salary expenses mentioned above, the following reform tasks will be carried out:

- Implement the salary fund in association with the goal of streamlining the payroll for agencies and units.

- Expanding the mechanism of allocating funds associated with the results of task performance.

- Do not associate the salary of officials and public employees with the formulation, amendment and supplementation of documents regulating policies and regimes that do not have a salary nature.

- Study regulations on contracting benefits other than salary (car, phone...).

- Only promulgate new policies and regimes when resources have been allocated and balanced for implementation.

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