At a press conference on the afternoon of June 20, Minister of Home Affairs Pham Thi Thanh Tra said that on June 19, the Ministry concluded on salary reform; adjusting pensions, social insurance benefits, preferential benefits for people with meritorious services and social benefits from July 1, 2024.
Not yet removed basic salary and salary coefficient
Based on the conclusion of the Politburo , the Government proposed solutions to implement adjustments to increase salaries, pensions, social insurance benefits, preferential benefits for people with meritorious services and social benefits.
Accordingly, the implementation of Resolution No. 27 of the 12th Central Committee on salary reform will follow a "roadmap, step by step, reasonable, cautious, and feasible".
Specifically, the Government proposed to implement 4/6 contents of public sector salary reform in Resolution No. 2 which are clear and eligible for implementation. The remaining 2/6 contents of public sector salary reform have not been implemented, including: New salary tables (removing basic salary and salary coefficient) and restructuring and arranging into 9 new allowance regimes.
Report to competent authorities for consideration of some contents of Resolution No. 27
In the coming time, the Minister of Home Affairs said that the Government will continue to research and report to competent authorities to review and evaluate some contents of Resolution No. 27 (especially the construction of new salary tables and allowance regimes) to ensure feasibility, fairness, reasonableness, and overall suitability with the economic situation and resources of the country and will continue to implement salary reform when conditions are met and reviewed and decided by competent authorities.
At the same time, continue to perfect legal documents on regimes and policies related to basic salary levels; report to competent authorities the list of job positions in the political system and focus on restructuring the team of cadres, civil servants and public employees according to job positions and rearranging the organizational apparatus, streamlining the payroll.
According to the Minister of Home Affairs, these are issues that have many shortcomings and need to be further studied and improved step by step, carefully. These issues must be reviewed and submitted to competent authorities for consideration or abolishment of regulations related to basic salary levels.
The Government proposes to abolish the basic salary and salary coefficient for implementing the solution to increase public sector salaries from July 1, 2024 with three contents during the time when conditions are not met.
Firstly, adjust the basic salary from July 1, 2024 (not abolishing the current basic salary and salary coefficient).
According to the Ministry's calculations, when fully implementing the contents of public sector salary reform according to Resolution No. 27, the total salary fund increase (excluding bonuses) of cadres, civil servants and public employees will be 30.6%.
Based on that, the Government proposed to adjust the basic salary from the current 1.8 million VND to 2.34 million VND/month (an increase of 30%).
Second, during the period when the conditions for implementing the 9 new allowances are not yet met, the current allowances will continue to be implemented. At the same time, the Government will be assigned to study and amend the allowance regime and some specific regimes of the armed forces and of cadres, civil servants and public employees in some specialized fields (especially allowances by profession) where unreasonable issues arise during the implementation process.
For some ministries and sectors that are proposing to have a job-based allowance regime, it is necessary to continue clarifying factors regarding preferential policies and working conditions to report to competent authorities for consideration and decision.
Third, regarding the implementation of salaries and incomes for state administrative agencies and units currently applying special financial and income mechanisms, the Government assigned the Ministry of Finance to preside over and coordinate with relevant ministries and agencies to continue reviewing the entire legal framework to submit to competent authorities for consideration and decision on amending or abolishing the special financial and income mechanisms of agencies and units currently being implemented accordingly.
During the period of no amendment or abolition, from July 1, 2024, the monthly salary and additional income calculated based on the basic salary of 2.34 million VND/month according to a special mechanism will not exceed the salary and additional income received in June 2024 (not including the salary and additional income due to adjustments to the salary coefficient of the salary scale and grade when upgrading the grade or grade).
In case of calculation according to the above principle, if the salary and income increase from July 1, 2024 according to the special mechanism is lower than the salary according to general regulations, the salary regime according to general regulations will be applied.
The best and most optimal solution
Minister Pham Thi Thanh Tra assessed the above options as the most feasible and best solutions in the context of not having enough conditions to abolish the current basic salary and salary coefficient (new salary tables and allowances have not been implemented yet).
The positive aspect of this plan, according to the Minister, is its positive impact on many groups in society, creating a good and very large effect in society.
Specifically, the subjects of retirement, benefits, regimes and policies associated with the basic salary level are all adjusted to increase correspondingly with the salary increase of civil servants, in accordance with the requirements of the Party and relevant legal regulations.
This will ensure a balanced, harmonious, fair and equal relationship between beneficiaries of salaries, allowances and policies related to basic salaries, creating a great consensus in society.
“The increase in basic salary from the current 1.8 million VND to 2.34 million VND/month (30%) is the highest increase ever, contributing to improving the lives of salary earners and beneficiaries of allowances, subsidies and support policies associated with the basic salary,” the Minister of Home Affairs emphasized.
Minister Pham Thi Thanh Tra affirmed that this creates motivation to improve productivity and work efficiency, contributes to social stability, and demonstrates the Party and State's concern for cadres, civil servants, public employees, armed forces and beneficiaries of regimes, policies on subsidies and allowances in the context of the country's many difficulties.
Increasing the basic salary also helps improve the lives of salary and allowance recipients; at the same time, it contributes to social progress and equity, and ensures socio-political stability.
The implementation of the above-mentioned contents of wage policy reform and increase in basic salary by 30% contributes to promoting socio-economic growth and development.
This plan also ensures the payment capacity of the state budget for the period 2024 - 2026. According to the calculation of the Ministry of Finance, the total funding demand for adjusting the basic salary to increase by 30%, implementing a bonus of 10% of the basic salary fund, adjusting pensions and cumulative allowances for the 3 years 2024 - 2026 is more than 900 trillion VND.
With this amount, the Government ensures sufficient resources for implementation.
The Government also proposed to increase current pensions and social insurance benefits by 15% from July 1, 2024.
For those receiving pension before 1995, after adjustment, if the benefit level is lower than 3.2 million VND/month, the adjustment will increase by 0.3 million VND/month, if the benefit level is from 3.2 million VND/month to less than 3.5 million VND/month, the adjustment will be 3.5 million VND/month.
In addition, the Government proposed to adjust the preferential allowance for meritorious people according to the standard allowance level from 2,055 million VND to 2,789 million VND/month (an increase of 35.7%, 5.7% higher than the 30% salary increase for civil servants); maintaining the current correlation of preferential allowance levels for meritorious people compared to the standard allowance level.
In addition, social allowances will be adjusted according to the social assistance standard from 360,000 VND to 500,000 VND/month (an increase of 38.9%).
The Government proposes to allow the expansion of the scope of using the Central budget's salary reform savings and to spend on adjusting pensions, social insurance benefits, preferential benefits for people with meritorious services, social benefits, social security policies and streamlining the payroll.
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