What is the salary reform roadmap for 2024?

Salary reform under Resolution No. 27 has many outstanding innovations.

In fact, our country has had 4 salary reforms in the years: 1960, 1985, 1993, 2003.

Resolution No. 27-NQ/TW of the Central Executive Committee of the Communist Party of Vietnam issued on May 21, 2018 is a resolution on reforming salary policy for cadres, civil servants, public employees, armed forces and employees in enterprises.

The Resolution clearly states: Wage policy is a particularly important policy of the socio-economic policy system. Wages must truly be the main source of income to ensure the lives of workers and their families; paying wages properly is an investment in human resource development, creating motivation to improve labor productivity and work efficiency of workers, making an important contribution to realizing social progress and equity, ensuring political and social stability; promoting and improving the quality of growth and sustainable development.

However, the wage policy still has many limitations and shortcomings: The wage policy in the public sector is still complicated, the design of the payroll system is not suitable for job positions, titles and leadership positions; it is still heavily egalitarian, does not ensure life, does not promote talent, does not create motivation to improve the quality and efficiency of workers. The regulation of the basic salary multiplied by the coefficient does not clearly show the real value of salary. There are too many types of allowances, many non-salary incomes decided by many agencies and levels with different regulations, causing unreasonable things, not clearly showing the administrative hierarchy in public service activities...

Therefore, reforming the wage policy is an objective requirement, an important task, requiring high political determination in building a socialist rule-of-law state and perfecting the socialist-oriented market economic institution; promoting administrative reform; innovating and arranging the organization of the political system to be streamlined, operate effectively and efficiently, and reduce staff; innovating the organization and management system, improving the quality and efficiency of operations of public service units...

Accordingly, Resolution No. 27-NQ/TW has the following outstanding innovations:

- Continue to increase base salary, increase regional minimum wage

- From 2021, State salary will be equal to enterprise salary

- By 2025, the lowest salary of officials and civil servants will be higher than the average lowest salary of regions in the business sector.

- By 2030, the lowest salary of officials and civil servants will be equal to or higher than the lowest salary of the highest region of the business sector.

- Build 5 new salary tables according to job position and position.

- Add bonuses to the salary structure.

The new salary structure for the public sector will 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 and bonus funds are equal to 10% of the total salary fund of the year, excluding allowances.

Salary reform roadmap to 2024

It can be seen that, compared to the planned roadmap of Resolution 27/2018 on salary reform, due to the impact of Covid-19, the salary reform roadmap has been delayed for many years. Specifically:

-October 9, 2020: Postponing salary reform due to Covid-19 until July 1, 2022 according to Resolution No. 23/2021/QH15 on the 13th Central Party Conference.

- November 13, 2021: Continue to postpone salary reform to an appropriate time according to Resolution No. 34/2021/QH15.

-October 11, 2022: Postpone salary reform and increase the basic salary in 2023 for cadres, civil servants and public employees from VND 1.49 million/month to VND 1.8 million/month according to Decree No. 24/2023/ND-CP.

Most recently, in Resolution No. 99/NQ-CP dated July 10, 2023, the Government also requested the Ministry of Home Affairs to preside over and coordinate with relevant ministries and branches to report on the review and arrangement of titles and positions according to management decentralization; develop and promulgate salary tables for positions to ensure consistency with Conclusion 35 of 20022 of the Politburo on the List of titles, leadership positions and equivalents of the political system from the Central to the grassroots level; amend the allowance level for holding concurrent positions.

According to Resolution No. 144/NQ-CP dated September 10, 2023 on the regular August meeting, the Government requested the Ministry of Home Affairs to preside over and coordinate with localities and relevant agencies to complete the draft Report to the National Assembly on the roadmap and plan for salary reform, then report to the Government before September 16, 2023.

Recently, on the afternoon of September 19, at the closing session of the Vietnam Socio-Economic Forum 2023, National Assembly Chairman Vuong Dinh Hue emphasized the need to fundamentally reform wages in 2024; suggesting that wage reform could be applied as early as July 1, 2024 if nothing changes.

"This time we are reforming wages, not just raising wages. Currently, all agencies are actively preparing both resources and institutions, policies on salary scales and tables to implement wage reform," said National Assembly Chairman Vuong Dinh Hue.

And it is expected that by next October, at the 6th Session, the 15th National Assembly will present a roadmap for salary reform for cadres, civil servants and public employees in the spirit of Resolution 27 of 2018.

Thus, the starting date of the 2024 salary reform roadmap will be implemented from July 1, 2024 if unanimously approved.

Saved 500,000 billion VND to prepare for salary reform

According to information at the regular Government meeting in September 2023 on September 30, in recent years, in the context of both preventing and overcoming the consequences of the Covid-19 pandemic and ensuring social security, we have still saved 500,000 billion VND to prepare for salary reform in 2024, 2025 and 2026 according to Resolution 27 of the 12th Central Committee.

Prime Minister Pham Minh Chinh assessed this as a great effort. The Prime Minister assigned the Ministry of Home Affairs to review and develop mechanisms and policies to implement the salary reform plan when approved by the Central Government.

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