Revolutionizing Wage Reforms: A United Front for Progressive Change

The legislative body has approved a comprehensive salary reform package, along with adjustments to pension and social insurance benefits for the deserving citizens, which will take effect from July 1, 2024.


Talent Recognition, Attraction, and Retention

National Assembly Chair Tran Thanh Man has signed and issued a resolution on the 7th session of the 15th National Assembly. The resolution commends the Government, the Prime Minister, ministries, sectors, and local authorities for their vigorous direction, administration, and execution of tasks and solutions. It also applauds the business community and people from all walks of life for their dedication, resulting in the fundamental fulfillment of socio-economic development and state budget targets.

The National Assembly urges the vigorous and effective implementation of measures to manage the gold market, ensuring its stability and health. It also emphasizes the need to boost support for the tourism industry’s recovery and, based on functions, tasks, and authority, devise suitable solutions to protect and ensure the number of aircraft and the operational capacity of domestic airlines.

The National Assembly agrees to implement salary reform contents from July 1st (Illustrative image)

The National Assembly also calls for an intensified reform of the public service and civil servants, along with the completion of institutions and regulations on regimes and policies for talent detection, attraction, and retention. It focuses on perfecting the system to encourage dynamic, creative, and daring officials who are willing to take responsibility for the common good, completely overcoming the situation of passing the buck, avoidance, and fear of mistakes and responsibility among civil servants. Emphasizing the importance of upholding public morality, administrative discipline, and accountability, the National Assembly highlights the role of leaders in this regard.

Additionally, the National Assembly urges focusing on the rearrangement of district- and communal-level administrative units for the 2023-2025 period, in line with the Party, National Assembly, and Government’s guidelines, striving to essentially complete the task by September 2024 to ensure organizational stability for the local Party congresses at all levels in 2025.

Unanimous Agreement on Salary Reform Contents

Based on Conclusion No. 83 of the Politburo and Report No. 329 of the Government, the National Assembly agrees to implement salary reform contents, adjust retirement pensions, social insurance benefits, preferential treatment for revolutionary contributors, and social allowances from July 1, 2024.

Specifically, it is necessary to fully implement the two contents of salary reform in the enterprise sector in accordance with Resolution No. 27 of the 12th Central Committee, including adjusting the regional minimum wage as stipulated in the Labor Code (increasing by an average of 6% from July 1, 2024) and prescribing the wage regime for state-owned enterprises (effective from January 1, 2025).

Salary reform in the public sector should follow the Resolution No. 27-NQ/TW, with a roadmap, a step-by-step, cautious, and sure manner, ensuring feasibility and contributing to improving the lives of wage earners.

The National Assembly assigns the Government to implement the contents that are clear and eligible for implementation, including perfecting the regime of salary promotion; supplementing the regime of bonus; stipulating the source of funds for salary implementation; perfecting the mechanism of salary and income management; and adjusting the basic salary from VND 1.8 million/month to VND 2.34 million/month (up 30%) from July 1, 2024.

For agencies and units that are currently applying special financial and income mechanisms in the Central region, the Government, and relevant ministries and sectors will continue to review the entire legal framework to submit to the competent authority for consideration and decision on amending or abolishing the special financial and income mechanisms of the agencies and units that are being implemented before December 31, 2024.

Preserve the difference between the salary and additional income in June 2024 of officials, public employees, and civil servants with the salary from July 1, 2024, after amending or abolishing the special financial and income mechanisms.

During the time when the special mechanisms have not been amended or abolished, the following shall be implemented: From July 1, 2024, the monthly salary and additional income shall be calculated according to the basic salary of VND 2.34 million/month under the special mechanism, ensuring that it does not exceed the monthly salary and additional income enjoyed in June 2024.

If, according to the above principle, the salary and additional income from July 1, 2024, under the special mechanism is lower than the salary prescribed by the common regulation, the salary regime prescribed by the common regulation shall be applied.

From July 1, 2024, adjust the retirement pensions and social insurance benefits currently being received (June 2024) by 15%; for those who are receiving retirement pensions before 1995, if after adjustment, the benefit is lower than VND 3.2 million/month, the benefit shall be adjusted to increase by VND 300,000/month, with a benefit of from VND 3.2 million/month to less than VND 3.5 million/month, it shall be adjusted to VND 3.5 million/month…

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Salary of civil servants and officials before and after salary reform

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Higher wages in education and healthcare industries compared to the average rate

According to Minister Pham Thi Thanh Tra, when implementing salary reform, the salaries of education and healthcare civil servants will be higher than the general level of the civil servant and other staff, because we are implementing salary policy reform linked to the implementation of the resolution on fundamental and comprehensive education and training development, healthcare.

Minister Dao Ngoc Dung: Wage reform must be accompanied by pension adjustment.

If the salaries of civil servants and officials increase by 23.5% after the reform, the pension at least must increase by 15%.