On the afternoon of June 25th, the National Assembly heard a report from the Government on salary reform; adjustments to pensions, social insurance benefits, preferential allowances for meritorious individuals, and social allowances effective from July 1st, 2024.

Presenting the Government 's report, Minister of Home Affairs Pham Thi Thanh Tra stated that during the implementation and development of the six specific contents on public sector salary reform in accordance with Resolution No. 27 of the 12th Central Committee, the Government has identified many obstacles and shortcomings.

These include issues related to the new salary scale; restructuring of allowance schemes; and the development and improvement of job descriptions...

These matters were reported by the Government to the Politburo , and on June 21, the Politburo issued Conclusion No. 83, agreeing on the principle for the Government to report to the National Assembly for implementation.

Add a bonus scheme equivalent to 10% of the salary fund.

Regarding the public sector, the Minister of Home Affairs stated that the Government has reported to and recommended to the National Assembly that 4 out of 6 contents of Resolution No. 27 be allowed to be implemented, as they are clear and meet the necessary conditions.

Specifically, this includes perfecting the salary increase system; supplementing the bonus system from July 1, 2024 (equal to 10% of the basic salary fund) linked to the evaluation and ranking of job performance, creating motivation and improving the quality and efficiency of work; clearly defining and guiding the five sources of funding for the salary system; and perfecting the salary and income management mechanism.

Specifically, the Government will regulate and guide the authority of heads of agencies to use salary funds and recurrent expenditure to hire experts, scientists, and talented individuals to perform tasks of the agency or unit, and to decide on the level of income payment linked to the assigned tasks; expanding the pilot program of increased salaries to localities that have achieved budget self-sufficiency...

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Regarding two out of six aspects of public sector salary reform, including new salary scales (eliminating the base salary and salary coefficient), restructuring and reorganizing into nine new allowance schemes, the Minister of Home Affairs stated that these aspects still present many shortcomings.

Therefore, these two issues need to be further researched and refined step by step, cautiously, while also considering amending or abolishing many current regulations related to the basic salary level.

The government proposes that, while conditions are not yet met to abolish the base salary and salary coefficient, a solution to increase public sector salaries from July 1, 2024, should be implemented with three points.

Firstly , the Government is tasked with adjusting the basic salary from the current 1.8 million VND to 2.34 million VND per month (a 30% increase), without abolishing the current basic salary and salary coefficient.

Secondly , to research, revise, and supplement the allowance system and some specific regulations for the armed forces and for cadres, civil servants, and public employees in certain specialized fields that have encountered inconsistencies in implementation.

Thirdly , maintain salary and income levels for agencies and units currently applying special financial and income mechanisms.

The government continues to direct a review of 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 in operation to ensure suitability.

Until these mechanisms are amended or abolished, the monthly salary and additional income will be calculated based on the base salary of VND 2.34 million/month under the special mechanism from July 1, 2024, ensuring that it does not exceed the salary and additional income received in June 2024.

In the case of calculation based on the above principle, if the salary and additional income from July 1, 2024, under the special mechanism are lower than the general salary level, then the general salary regime will be applied.

Preferential allowances for war veterans and their families will increase by 35.7%.

In addition, the Government also proposed that the National Assembly allow a 15% increase in pensions and social insurance benefits.

For those receiving pensions before 1995, after adjustment, if their pension is less than 3.2 million VND/month, it will be increased by 0.3 million VND/month; if their pension is between 3.2 million VND/month and less than 3.5 million VND/month, it will be adjusted to 3.5 million VND/month.

Regarding preferential allowances for meritorious individuals, the Government proposes raising the allowance standard from 2.55 million VND to 2.789 million VND per month (an increase of 35.7%).

Social assistance benefits, based on the standard social assistance level, increased from 360,000 VND to 500,000 VND per month (an increase of 38.9%).

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The government will soon report to the Central Executive Committee on expanding the scope of using accumulated salary reform funds from the central and local budgets to cover adjustments to pensions, social insurance benefits, preferential allowances for meritorious individuals, social allowances, social security policies, and workforce reduction.

For the business sector, the Government proposes full implementation of Resolution No. 27 with two contents: adjusting the regional minimum wage according to the provisions of the Labor Code (an increase of 6% from July 1, 2024); and regulating the wage mechanism for state-owned enterprises (applicable from January 1, 2025).

The government proposes including these contents in the general resolution of the 7th session for submission to the National Assembly for consideration and decision.

How much will civil servant salaries increase if the base salary rises to 2.34 million VND from July 1st?

How much will civil servant salaries increase if the base salary rises to 2.34 million VND from July 1st?

Civil servants holding senior expert positions currently receive the highest salaries, equivalent to those of ministers. It is projected that from July 1, 2024, their salaries will increase from 18 million to 23.4 million VND per month (an increase of 5.4 million VND).
Minister of Home Affairs: The competent authority has agreed to increase the basic salary by 30%.

Minister of Home Affairs: The competent authority has agreed to increase the basic salary by 30%.

Minister of Home Affairs Pham Thi Thanh Tra said that the Government has proposed to the National Assembly to allow the retention of the basic salary and salary coefficient, but to adjust the basic salary from the current 1.8 million VND to 2.34 million VND/month - an increase of 30%, the highest ever.