Salary reform and pension increase from July 1, 2024

On the afternoon of October 23, Minister of Finance Ho Duc Phoc, authorized by the Prime Minister, reported to the National Assembly on the implementation of the state budget in 2023, the state budget estimate, and the central budget allocation plan for 2024.

One of the notable contents informed by the Minister of Finance is the ability to arrange resources to implement salary reform.

Adjusting pension and social insurance benefits

Minister Ho Duc Phoc said that by the end of 2022, if including the remaining salary reform funding source and the source arranged from the increased revenue of the central budget in previous years (including the increased revenue source in 2022 being submitted to all levels), the total central budget source for salary reform will be about 132 trillion VND.

In addition, there is a local budget accumulation of over 430 trillion VND.

With the expected revenue and expenditure of the 2024 budget, along with the use of a part of the accumulated salary reform resources of the central budget and local budget sources, it is expected to ensure sufficient implementation of synchronous salary policy reform according to Resolution 27 of the 12th Central Committee starting from July 1, 2024.

In particular, the Government submitted to the National Assembly permission to use about 19 trillion VND of the remaining salary reform revenue to arrange the 2024 budget of a number of localities to implement the basic salary of 1.8 million VND/month.

Regarding budget expenditure, the Government proposed the principle of arranging the 2024 budget expenditure estimate to ensure that the total development investment expenditure is greater than the budget deficit for tasks in the medium-term public investment plan according to the Law on Public Investment and other development investment expenditure tasks according to the Law on State Budget.

At the same time, arrange for full and timely interest payments, contingency spending, and national reserves at a reasonable level to ensure timely handling of urgent tasks that arise.

In addition, the Government also allocates resources to implement salary reform according to the Central's conclusion; allocates resources to adjust and increase pensions, social insurance benefits, and monthly allowances for subjects guaranteed by the budget; increases preferential treatment for meritorious people and some social security policies to ensure partial compensation for inflation and additional increases...

According to the Minister of Finance, the total budget expenditure estimate for 2024 is about more than 2.1 million billion VND, an increase of 24.1 thousand billion VND (+1.2%) compared to the estimate for 2023.

If including the remaining revenue transferred from salary reform to allocate the 2024 expenditure estimates of some localities (about 19 trillion VND), the total budget balance expenditure in 2024 will be about more than 2,119 trillion VND.

Salary reform in sync with organizational restructuring and staff streamlining

Examining this content, Chairman of the Finance and Budget Committee Le Quang Manh agreed with the Government's proposal to implement salary reform.

However, he also noted that to ensure long-term policy implementation, the auditing agency noted that it is necessary to evaluate and compare the overall salary reform policy, balance resources for implementation in the 2024-2026 period and forecast to 2030, ensuring long-term feasibility according to the roadmap of Resolution 27.

The Chairman of the Finance and Budget Committee reiterated that by the end of 2023, the total fund for salary reform will be VND486,000 billion, of which the central budget will be VND112,000 billion and the local budget will be VND374,000 billion. However, to ensure resources, the salary reform roadmap until 2030 needs to synchronously implement solutions to increase sustainable budget revenue.

In particular, Mr. Manh said that there should be flexible fiscal and monetary policies because the pressure to increase budget spending will increase. Salary reform needs to be implemented synchronously with increasing basic salary, innovating and rearranging the apparatus, and streamlining the payroll.

Regarding the 2024 budget allocation, the Finance and Budget Committee agreed with the Government's proposal. Accordingly, the roadmap for implementing salary reform, appropriate adjustments to pensions, social insurance benefits, monthly allowances, preferential allowances for meritorious people and some social security policies are linked to the basic salary.

The implementation of the special financial and income management mechanism for central state administrative agencies and units will be implemented until June 30, 2024, and from July 1, 2024, it will be implemented according to the salary reform roadmap.

Prime Minister: There is 560 trillion VND, enough resources for salary reform in 3 years

Prime Minister Pham Minh Chinh said that thanks to promoting increased revenue and saving expenditure, the Government has set aside about 560 trillion VND for the salary fund to date, ensuring enough resources for salary reform in the 3 years of 2024 - 2026.

Do not miss the salary reform deadline for millions of civil servants and public employees

National Assembly Delegate Ta Thi Yen - Deputy Head of the Delegation Affairs Committee (under the National Assembly Standing Committee) highly appreciated the Government's efforts to implement salary reform and increase salaries for officials, civil servants and public employees from July 1, 2024.

Home Minister answers the question ‘where will the money come from to increase wages’ from 1/7/2024

Home Minister answers the question 'where will the money come from to increase salaries' from July 1, 2024

The Minister of Home Affairs said that it is expected that when implementing the new salary policy, increasing salaries for officials, civil servants and public employees from July 1, 2024, the budget will need to spend an additional nearly 500,000 billion VND in the 2024 - 2026 period.

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