Details of 9 Types of Allowances Under the New Salary Scheme
Resolution 104/2023/QH15 states that, starting July 1, 2024, a comprehensive reform of the salary policy will be implemented per Resolution 27 of 2018 by the Central Committee (the financial source for implementing the salary reform is ensured from the accumulated salary reform fund of the central and local budgets and a portion allocated in the estimated balanced state budget expenditure).
Officials’ salaries are expected to increase significantly from July 1, 2024. Photo: VGP
According to Resolution 27, there are 9 types of allowances under the new salary scheme, namely: Allowance for additional duties; Seniority allowance beyond the pay scale; Area allowance; Responsibility allowance; Mobility allowance; Preferential allowance based on profession; Allowance for working in regions with particularly difficult socio-economic conditions; Allowance based on the classification of administrative units and the ranking of public service units; and Allowance specifically for the armed forces.
Allowances Can Account for Up to 30% of the Total Salary Fund
Also, according to Resolution 27 of 2018 by the Central Committee, the rearrangement of current allowance regimes shall ensure that the total allowance fund accounts for up to 30% of the total salary fund as follows:
Continue to apply the following allowances: Allowance for additional duties; Seniority allowance beyond the pay scale; Area allowance; Responsibility allowance; Mobility allowance; Allowance for serving national security and defense, and special allowances for the armed forces (military, police, and cryptography forces).
Merge the preferential allowance based on profession, the responsibility allowance based on profession, and the hazardous work allowance (collectively referred to as the professional allowance) applicable to civil servants and public employees of professions or jobs with higher-than-normal working conditions and entitled to appropriate state incentives (education and training, healthcare, courts, prosecution, execution of civil judgments, inspection, audit, customs, forest rangers, market management, etc.). Merge the special allowance, the attraction allowance, and the long-service allowance in regions with particularly difficult socio-economic conditions into an allowance for working in particularly difficult regions.
Discontinue the following allowances: Seniority allowance for professions (except for the military, police, and cryptography forces to ensure salary correlation with civil servants); Leadership position allowance (as leadership positions in the political system are entitled to positional salaries); Party and socio-political organization work allowance; Civil service allowance (as it has been incorporated into the basic salary); and Hazardous work allowance (as hazardous working conditions have been incorporated into the professional allowance).
Introduce a new regime of allowances based on the classification of administrative units for communal, district, and provincial levels.
Consistently apply monthly allowance caps for non-specialized staff at the communal level and in villages and residential areas based on the percentage of regular expenditures of the People’s Committee at the communal level; at the same time, specify the maximum number of non-specialized staff according to the type of communal, village, and residential area.
Based on this, the People’s Committee at the communal level shall submit to the People’s Council at the same level for specific regulations on positions entitled to allowances, with the direction that one position may undertake multiple tasks but must ensure the quality and efficiency of the assigned tasks.
Average Salary Is Expected to Increase by About 30%
According to the salary reform plan, from July 1, 2024, the average salary of officials, civil servants, and public employees is expected to increase by about 30% (including both the basic salary and allowances).
From 2025 onwards, this salary will continue to be adjusted with an average annual increase of about 7%.
A notable point of the new salary policy is that the minimum salary in the public sector is set at the same level as the average minimum salary in the business sector.
Currently, the business sector’s salaries are divided into 4 regions: Region 1 is VND 4.68 million/month; Region 2 is VND 4.16 million/month; Region 3 is VND 3.64 million/month; and Region 4 is VND 3.25 million/month. Thus, the average minimum salary in the business sector is currently over VND 3.9 million.
