Vietnam: Increasing for officials, public employees in the near future

This is one of the notable contents mentioned in the Resolution No. 27/NQ-TW on reforming salary policy for officials, public employees, armed forces and employees in enterprises in Vietnam.

Specifically, according to the provisions of Section 3.1.d, Part II of the Resolution No. 27/NQ-TW, one of the contents of salary reform for officials, public employees, armed forces (public sector) is to expand the application of the pilot mechanism to a number of central-affiliated provinces and cities that have self-balanced their budgets and ensure sufficient sources to implement wage reform, social security policies, the average increase does not exceed 0.8 times the basic salary fund of officials and public employees under their management.

This is the amount paid based on the performance of officials and public employees in each agency or unit, which is assessed by the head of the unit. In Ho Chi Minh City, this amount is paid after having the results of quarterly and annual performance evaluation of each official and public employee.

As expected, this reform will be implemented in 2021, however, due to the impact of the Covid-19 epidemic, at the 13th Conference of the 12th Central Committee of the Party, from October 5 to October 9 2020, the Central Committee discussed and commented on many important issues, in which, the Party Central Committee agreed with the proposal of the Vietnam Government's Party Personnel Committee on the time to implement the new salary regime from July 1, 2022 (instead of 2021 as before) for officials , public employees, armed forces and employees in enterprises according to the Resolution No. 27/NQ-TW.

It can be seen that, at present, additional income expenditure has only been applied in Ho Chi Minh City. With this reform content, in the coming time, specifically, from July 1, 2022, the application of the pilot mechanism to spend additional income for officials and public employees will be expanđe in a number of central-affiliated provinces cities which have self-balanced budgets and ensured sufficient resources to implement wage reform and social security policies. Officials and public employees of these localities will be entitled to an additional average income not exceeding 0.8 times the basic salary fund.

Also according to the Resolution No. 27/NQ-TW, on the mechanism of salary and income management for cadres, civil servants and public employees, the Resolution emphasized:

- Public non-business units that cover their own recurrent and investment expenditures, or self-finance their own recurrent expenditures and state financial funds outside the state budget, are entitled to the wage autonomy mechanism according to their operating results as a business.

- Public non-business units that cover part of recurrent expenditures by themselves and public non-business units with all recurrent expenditures covered by the state budget shall apply the salary regime similar to officials. The actual salary paid in association with the employment position and professional title of the public employee shall be decided by the head of the public non-business unit on the basis of revenue sources (from the state budget and from the unit's revenue), labor productivity, work quality and work efficiency according to the salary regulations of the unit, not lower than the salary regime prescribed by the State

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