The National Assembly has passed Resolution 104/2023/QH15 on the state budget estimate for 2024, which includes provisions on implementing salary reforms from July 1, 2024. Accordingly, the three important types of salaries, including civil servant salaries, pension salaries, and minimum wages, will increase from July 1.
Increase in salaries for officials and civil servants
In the new salary policy, the range of salary coefficients will be expanded from the current range of 1 – 2.34 – 10 to 1 – 2.68 – 12. This means that the minimum basic salary for civil servants will significantly increase compared to the current starting salary of 3.5 million dong, applied to mid-level civil servants with a salary coefficient of 1.86.
In addition, the average starting salary for civil servants will also increase, with the new salary coefficient of 2.68, higher than the current coefficient of 2.34. For civil servants with a university degree, the previous starting salary with a coefficient of 2.34 was over 4.2 million dong per month.
The highest salary for civil servants at level 3 of senior experts (equivalent to the salary level of Ministers), will also be adjusted from a coefficient of 10 to a coefficient of 12. Thus, the highest salary is expected to be higher than the current 18 million dong.
From July 1, the average salary of civil servants is expected to increase by about 30%. The specific increase for each individual will depend on the job position, job performance, and other related factors.
Illustrative photo. Source: chinhphu.vn
Increase in pension salaries, social insurance benefits
In addition to the salary reform for civil servants, the resolution also mentions increasing the pension salaries and social insurance benefits.
Specifically, starting from July 1, the pension salaries, social insurance benefits, monthly subsidies, preferential subsidies for individuals with contributions, and other social security policies linked to the basic salary will be adjusted.
When the salary reform is applied from July 1, the Vietnam Social Security has proposed an 8% increase in pension salaries. However, Minister of Labor, Invalids, and Social Affairs Dao Ngoc Dung believes that the minimum increase in pension salaries should be 15%.
Currently, the specific number for the increase in pension salaries from July 1 has not been determined. It is expected that the decree on adjusting pension salaries will be submitted to the Government in May 2024.
Increase in regional minimum wage by 6%
On January 20, 2023, the National Wage Council also decided to increase the regional minimum wage for 2024 by 6%, and this new wage will take effect from July 1.
Accordingly, the regional minimum wage will increase by an additional 200,000 to 280,000 dong, depending on each region. Specifically, after adjustment, the minimum wage for each region will be: region 1 will be 4,960,000 dong; region 2 will be 4,410,000 dong; region 3 will be 3,860,000 dong; and region 4 will be 3,450,000 dong.
Before adjustment, the regional minimum wage ranged from 3,250,000 dong to 4,680,000 dong.
In addition, the minimum hourly wage will also be adjusted to increase by 6% from July 1, with the following new wages: region 1 will increase to 23,800 dong/hour; region 2 will be 21,200 dong/hour; region 3 will be 18,600 dong/hour; and region 4 will be 16,600 dong/hour.
