Resolution 27: Contents of salary reform to be concluded by the Politburo of Vietnam

Resolution 27: Contents of salary reform to be concluded by the Politburo of Vietnam  (Image from the internet)

Resolution 27: Contents of salary reform to be concluded by the Politburo of Vietnam

* For the enterprise sector

Two main actions to be fully implemented:

(1) Adjust the region-based minimum wage (monthly and hourly) according to the Labor Code (increase by 6% compared to 2023), effective from July 1, 2024.

(2) Regulate the wage mechanism for state-owned enterprises based on the Resolution 27-NQ/TW, effective from January 1, 2025, to align with the enterprise's fiscal year.

* For Vietnamese officials, public employees, and armed forces (public sector)

Implementing salary reform according to Resolution 27-NQ/TW for officials, public employees, and armed forces faces many difficulties, obstacles, and inadequacies. Therefore, a thorough, comprehensive review and research process is needed. Many regulations of the Party and State laws need to be amended and supplemented to present to the Central Committee for consideration and adjustment of certain content of Resolution 27-NQ/TW to align with practical situations. Based on this situation and Resolution 27-NQ/TW, the Politburo assigned the Government Party Committee to direct the government to implement public sector salary reform in a reasonable, gradual, cautious, and feasible manner. Accordingly, seven specific actions will be taken:

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

(2) Implement a reward system from July 1, 2024 (the reward fund will amount to 10% of the basic salary fund). The reward system will be tied to the responsibility of the head of the agency or unit in evaluating and ranking the work completion level of the salary earners, promptly encouraging, motivating officials, public employees, and armed forces to enhance work quality and efficiency, contributing to the improved effectiveness of the political system; avoiding duplication with the Law on Emulation and Reward.

(3) Complete the salary increase regime suitable with the transition in management and salary payment for officials, public employees, and armed forces.

(4) Clearly stipulate and guide the five financial sources for wage system implementation, including: (1) From the increased revenue and residual funds of localities allocated for previous years' salary reform. (2) From the central budget. (3) From a part of career revenue. (4) From 10% cost-saving on recurrent expenditures. (5) From funds acquired through workforce streamlining.

(5) Perfect the mechanism for wage and income management: Clearly stipulate and guide four aspects, including: (1) Authority and responsibility of the head in evaluating, ranking officials, public employees, to provide wage and rewards based on their performance. (2) Authority of the head to use the salary fund and regular expenditure funds to hire experts, scientists, and talented individuals to perform agency tasks and decide income levels tied to assigned tasks. (3) Expanding the pilot application of additional wages for some localities when qualified, following the policy in Resolution 27-NQ/TW. (4) A management mechanism for wages and income suitable with the state budget and revenue sources of public service units.

(6) Implement wages and income for agencies and units under specific financial and income mechanisms:

Assign the Government Party Committee to direct the Government, ministries, and relevant agencies to review all legal frameworks uniformly for competent authorities to consider, decide on amending or abolishing the specific financial and income mechanisms of agencies and units for suitability; retain the difference between the wages and additional income in June 2024 for officials, public employees with wages effective from July 1, 2024, after amending or abolishing specific financial and income mechanisms. Until the revisions or abolitions are made, implement the following: From July 1, 2024, the wage and additional income monthly based on the statutory pay rate of 2.34 million VND/month under specific mechanisms should not exceed the wage and additional income of June 2024.

(7) On amendments, supplements of some allowance regimes: The Government Party Committee to lead, direct research and decide on amending and supplementing allowance regimes and specific regimes of the armed forces, the allowance regimes for officials, public employees of some specialized fields, especially occupational allowances arising unreasonably during implementation.

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