Conclusion of the Politburo of Vietnam on salary reform, adjustment of pensions, and social insurance allowances from July 1, 2024

Conclusion of the Politburo of Vietnam on salary reform, adjustment of pensions, and social insurance allowances from July 1, 2024

Specifically, the Politburo of Vietnam has made conclusions regarding the salary reform from July 1, 2024, according to Resolution 27-NQ/TW of 2018 as follows:

For officials, public employees, and armed forces (public sector):

The implementation of salary reform according to Resolution 27-NQ/TW of 2018 for officials, public employees, and armed forces faces numerous difficulties, obstacles, and inconsistencies, requiring careful, thorough, and comprehensive review and research. Additionally, many Party and State legal regulations need to be amended and supplemented to present to the Central Committee for reviewing and adjusting some content of Resolution 27-NQ/TW of 2018 to suit the practical situation.

Based on the above situation and Resolution 27-NQ/TW of 2018, the Politburo of Vietnam assigns the Government's Party Affairs Committee to direct the Government to implement public sector salary reform according to a roadmap that is step-by-step, reasonable, cautious, and feasible. Specifically, implementing the following 7 contents:

(1) Adjust the statutory pay rate from VND 1.8 million to VND 2.34 million (an increase of 30%) starting from July 1, 2024.

(2) Implement the reward regime from July 1, 2024 (reward fund is 10% of the basic salary fund). The reward regime must be closely associated with the responsibility of the heads of agencies or units in evaluating and classifying the performance level of salaried persons to promptly encourage and motivate officials, public employees, and armed forces to improve the quality and efficiency of their work, thereby enhancing the effectiveness and efficiency of the political system’s operations. Avoid redundant regulations with the Emulation and Commendation Law of 2022.

(3) Improve the salary increment regime in line with the transition of management and payment of salaries for officials, public employees, and armed forces.

(4) Clearly stipulate and guide the 5 sources of funds for implementing the wage regime, including:

(i) From the increased revenue and the surplus of local funds allocated for salary reform in previous years carried forward.

(ii) From the central budget.

(iii) From part of service-sector revenue.

(iv) From 10% cost savings in periodic increases.

(v) From the funds due to rationalization and streamlining of personnel.

For detailed content, see Conclusion 83-KL/TW issued on June 21, 2024.

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