How will Hanoi officials and civil servants receive additional income under the 2024 Capital City Law?

Kinhtedothi - From January 1, 2025, officials, civil servants, and public employees working in state agencies, socio-political organizations, and public service units whose recurrent expenditures are fully covered by the budget under the management of Hanoi City will receive additional income based on their competence and work efficiency.

Receive additional income based on performance and work efficiency.

Based on Clause 3, Article 15 of the 2024 Law on the Capital City, which regulates the recruitment, management, and use of cadres, civil servants, and public employees: Cadres, civil servants, and public employees working in state agencies, political organizations, the Vietnam Fatherland Front , socio-political organizations, and public service units whose recurrent expenditures are fully covered by the state budget and are under the management of the city are entitled to additional income based on their competence and work efficiency.

Therefore, from January 1, 2025, officials, civil servants, and public employees working in state agencies, political organizations, the Vietnam Fatherland Front, socio-political organizations, and public service units are guaranteed full recurrent expenditures managed by Hanoi City and will receive additional income based on their competence and work efficiency.

From January 1, 2025, officials and civil servants in Hanoi's budget-funded units will receive additional income based on their competence and work performance.

Furthermore, based on point a, clause 1, Article 35 of the 2024 Law on the Capital City, which stipulates the use of financial and budgetary resources for the development of the Capital City, the Hanoi People's Council is authorized to perform the following tasks and powers: To decide on the use of remaining funds from salary reform after ensuring sufficient resources to implement salary reform for the entire budget stabilization period as prescribed by competent authorities and ensuring social policies, social security, and social welfare issued by the Central Government to pay additional income to officials, civil servants, and public employees as prescribed in clause 3, Article 15 of this Law; the total expenditure shall not exceed 0.8 times the basic salary fund of officials, civil servants, and public employees under the management of the City.

Therefore, the City People's Council will disburse additional income to officials, civil servants, and public employees, with the total amount not exceeding 0.8 times the basic salary fund of officials, civil servants, and public employees under the city's management.

How do we recruit and attract talented people?

Based on Clause 1, Article 15 of the 2024 Capital City Law, which regulates the recruitment, management, and use of officials, civil servants, and public employees: Officials and civil servants working at communes, wards, and towns are officials and civil servants as stipulated in the Law on Officials and Civil Servants, belonging to the administrative staff allocated annually to the district level, and are elected, recruited, managed, and used in accordance with the law on officials and civil servants.

Based on Article 16 of the 2024 Law on the Capital City, which regulates the attraction and utilization of talented individuals and the development of high-quality human resources, the attraction and utilization of talented individuals are carried out as follows:

Vietnamese citizens with outstanding moral character, qualifications, and abilities, possessing practical experience, and currently working domestically or abroad, who have made significant contributions, achievements, merits, or special services to the development of a sector or industry in the Capital City, may be considered for recruitment and employment as civil servants or public employees; Vietnamese citizens who meet the standards specified in point a of this clause may sign contracts to perform professional or technical work or assume management and operational positions in public service units under the management of the City; Foreigners with high professional qualifications, extensive practical experience, and whose projects or products have been accepted, recognized, and applied effectively may sign contracts to perform tasks related to the construction, development, management, and protection of the Capital City. Individuals selected, accepted, or hired under the provisions of points a, b, and c of Clause 1, Article 16 of the 2024 Capital City Law are entitled to the benefits and policies stipulated by the Hanoi City People's Council.

The Hanoi People's Council decides on the following policies regarding the development of high-quality human resources in the capital city: Prioritizing the development of high-quality human resources, reaching regional and international standards in sectors and fields that meet the requirements and tasks of building, developing, managing, and protecting the capital city in each stage; Using the city's budget to support investment in infrastructure and equipment for key national training institutions in the city; Using the city's budget to support training, professional development, and skill enhancement at foreign training institutions for officials, civil servants, and employees working in agencies, organizations, and units under the city's management, as well as students of educational and training institutions in the city; Supporting the formation of national and regional centers for high-quality vocational training and practice in the city; and supporting tuition fees for vocational students at high-quality vocational training institutions in the city.

At its 20th session, the Hanoi City People's Council delegates voted to approve the Resolution stipulating the payment of additional income to Hanoi officials, civil servants, and public employees.

The disbursement of additional income could be implemented from 2025 to the end of 2030.

Recently, on the afternoon of December 10th, at the 20th session, the delegates of the Hanoi City People's Council voted to approve the Resolution stipulating the payment of additional income to officials, civil servants, and employees working in state agencies, political organizations, the Vietnam Fatherland Front, socio-political organizations, and public service units whose recurrent expenditures are fully covered by the state budget under the management of Hanoi City.

According to the Hanoi People's Committee's proposal, the funds for additional income payments will be sourced from the remaining salary reform funds of the budgets at all levels, after ensuring sufficient resources to implement salary reform for the entire budget stabilization period as stipulated by competent authorities and guaranteeing social policies, social security, and social welfare issued by the Central Government.

The funding for additional income payments of agencies and units is based on the basic salary fund (including salary according to rank and position) multiplied by the deduction rate decided by the City People's Council. The remaining funds from the 2023 salary reform budget carried over to 2024 (after supplementing the needs for additional salary reform and bonuses according to Decree No. 73/2024/ND-CP) amount to 66,073 billion VND. The additional funding needed for salary reform each year is approximately 12,000 billion VND.

Thus, the remaining funds for salary reform to pay additional income at a rate of 0.8 times the basic salary fund can be allocated from 2025 to the end of 2030. In 2025, the allocation rate to create a fund for paying additional income will be 0.8 times the basic salary fund.

From the start of the next budget stabilization period, based on the remaining funds from salary reform after ensuring sufficient resources to implement salary reform for the entire budget stabilization period as prescribed by competent authorities and ensuring social policies, social security, and social welfare issued by the Central Government, the People's Committee of Ho Chi Minh City shall report and propose to the City People's Council for consideration and decision the amount to be allocated to create a fund for paying additional income to officials, civil servants, and public employees under the city's management for the entire period and each year, but not exceeding 0.8 times the basic salary fund.

In the event of fluctuations in the salary reform fund that alter the current deduction level, the People's Committee of Ho Chi Minh City shall report and propose the revised deduction level for the City People's Council to consider and decide at the nearest City People's Council meeting.

The additional income of agencies and units shall be disbursed according to the following plan: 0.5 times the basic salary fund shall be used to disburse monthly additional income to all existing officials, civil servants, and employees of the agency or unit who are eligible based on their current salary grade, rank, and position.

0.3 times the remaining basic salary fund will be used to pay year-end additional income to officials, civil servants, and employees of agencies and units who are evaluated and ranked annually as having completed their tasks or better. The head of the agency or unit is responsible for specifying the payment plan for officials, civil servants, and employees who are evaluated and ranked annually, ensuring that the additional income is paid in accordance with the principles of the Resolution and the regulations of the Law on the Capital City.

This resolution shall take effect from January 1, 2025.

According to Tran Dinh Canh, Director of the Hanoi Department of Internal Affairs, the resolution on the above matter was developed by the city to ensure objectivity, fairness, and effectiveness in work performance, avoiding a one-size-fits-all approach. It essentially ensures the consumer price index in the capital, helping to motivate and encourage officials and civil servants to further improve their work efficiency, contributing to the city's development.

Speaking at the session, delegate Duong Hoai Nam (Long Bien district) expressed his agreement with the proposed increase in income for officials and civil servants when implementing the Law on the Capital City. He also stated that this is a significant impact on officials and civil servants in the capital city. Increased attention and benefits will enhance their sense of responsibility and create a more positive spirit among them.

Among the groundbreaking and outstanding policies for the development of Hanoi, the regulations on the organizational model of the capital's government towards a streamlined, professional, modern, and effective operation, along with the civil service system; attracting and utilizing talented individuals and developing high-quality human resources; and promoting decentralization and delegation of power are the most important policy highlights. If these policies are implemented effectively, they will serve as leverage, motivation, and a foundation for implementing policies on the construction, development, management, and protection of the capital city.

If the government apparatus operates effectively, efficiently, and modernly, it can attract and utilize all resources – not only state resources, but also resources from outside society – to serve national development. The team of officials, civil servants, and even part-time staff plays a crucial role in implementing policies for the development of the capital city.

Policies and institutions have been groundbreaking and outstanding, meeting the requirements of the current development context. However, for them to be effectively implemented and put into practice, they cannot be achieved without talented individuals and a high-quality workforce. Therefore, policies to attract, value, and develop high-quality human resources are essential.

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