Abolish basic salary
According to Resolution 27-NQ/TW in 2018 of the Central Executive Committee, the specific factor for designing the new salary table is the basic salary, which is built with a specific amount in the new salary table.
The current basic salary and salary coefficient will be abolished.
In addition, the State shall implement a unified labor contract regime according to the provisions of the Labor Code (or service provision contracts) for those who perform executive and service work (requiring training level below intermediate level), and shall not apply the salary scale of civil servants and public employees to these subjects.
When implementing salary reform, the basic salary will be established with a specific amount in the new salary table.
The lowest salary level for civil servants and public employees in the public sector is determined to be the salary level of those doing jobs requiring intermediate training (level 1) not lower than the lowest salary level of trained workers in the business sector.
Currently, the formula for calculating salaries of cadres, civil servants and public employees is as follows: Salary = Basic salary of 1.8 million VND/month x salary coefficient.
Expanding the wage relationship as a basis for determining specific wage levels in the payroll system, gradually approaching the wage relationship of the enterprise sector in accordance with State resources.
Complete the regular salary increase regime and early salary increase for cadres, civil servants, public employees and armed forces in accordance with the provisions of the new salary table.
Roadmap for salary reform
Resolution 27 clearly states the roadmap for the public sector, from 2021, to apply a new unified salary regime for cadres, civil servants, public employees, and armed forces in the entire political system.
In 2021, the lowest salary of cadres, civil servants and public employees will be equal to the average lowest salary of regions in the business sector.
Periodically increase wages in accordance with the consumer price index, economic growth and state budget capacity.
By 2025, the lowest salary of cadres, civil servants and public employees will be higher than the average lowest salary of regions in the business sector.
By 2030, the lowest salary of cadres, civil servants and public employees will be equal to or higher than the lowest salary of the highest region of the business sector.
However, in reality, due to the difficulties of the Covid-19 pandemic, the government had to postpone the implementation of this roadmap. Up to now, the new time frame for the fundamental reform of wages has been determined to be in 2024.
New salary structure
In the spirit of Resolution 27, the new salary structure will be designed to include: Basic salary (accounting for about 70% of the total salary fund) and allowances (accounting for about 30% of the total salary fund). Additional bonuses (bonus fund is equal to about 10% of the total salary fund of the year, excluding allowances).
This is the first time a document has shown that, in addition to salary and allowances, cadres, civil servants and armed forces have a bonus fund.
To build salaries, the Central Government also agreed to issue a new salary system according to job positions, titles and leadership positions to replace the current salary system; convert old salaries to new salaries, ensuring that they are not lower than current salaries.
For the first time, bonuses were added to the salary fund for civil servants (Illustration: Manh Quan).
The classification of equivalent leadership positions in the political system to design the salary table for positions is decided by the Politburo after reporting to the Central Executive Committee.
According to the resolution, it is agreed to rearrange the current allowance regimes, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund. Accordingly, it is necessary to continue applying concurrent allowances; seniority allowances exceeding the framework; regional allowances; work responsibility allowances; mobility allowances; security and defense service allowances and special allowances for the armed forces (army, police, and cryptography).
Combining occupational allowances, occupational responsibility allowances and hazardous and dangerous allowances (collectively referred to as occupational allowances) applied to civil servants and public employees of occupations and jobs with higher than normal working conditions and with appropriate preferential policies of the State (education and training, health, courts, prosecution, civil enforcement, inspection, examination, auditing, customs, forestry, market management, etc.).
Merge special allowances, attraction allowances and long-term work allowances in areas with particularly difficult socio-economic conditions into work allowances in particularly difficult areas.
Abolish seniority allowances (except for the military, police, and cryptography to ensure salary correlation with cadres and civil servants); leadership position allowances (due to salary classification for leadership positions in the political system); allowances for work of the Party and political and social organizations; public service allowances (due to being included in the basic salary); toxic and dangerous allowances (due to including working conditions with toxic and dangerous factors in occupational allowances).
New regulations on allowances according to administrative unit classification for commune, district and provincial levels.
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