Tiếng Việt
中文 (中国)
From July 2024, a comprehensive reform of the salary system in Vietnam will be implemented, symbolizing a significant step in addressing issues related to income and wage fairness. This new policy will affect millions of workers nationwide and bring positive changes to their lives and labor productivity.
The salary reform policy aims to enhance fairness in compensating workers commensurate with their efforts. In this way, income disparities between industries, job positions, and geographical areas will be minimized, especially in terms of income disparity between workers in the enterprise sector and those in the public sector.
The goal is to create a fairer labor environment where people receive recognition and fair compensation for their efforts and skills.
Basic information about the salary reform policy from July 2024
Starting from July 1, 2024, the average salary of officials, civil servants, and employees in Vietnam will increase by about 30%, depending on their job positions. However, this increase is only a short-term change in 2024. Accordingly, the government plans to continue increasing the average salary by about 7% annually for these groups of workers in 2025.
Previously, the basic salary of civil servants was calculated based on the base salary and salary coefficient. The applied base salary is 1.8 million dong per month, and the salary coefficient is specified in the appendix accompanying Decree 204/2004/NĐ-CP.
However, from July 1, 2024, according to the salary reform, the latest information from the Government Portal indicates that officials and civil servants with salary coefficient level 1 may see an increase from 2.34 to 10 up to 2.68 to 12.
Moreover, additional bonuses and rearrangement of allowances could also significantly contribute to the average salary increase of officials, civil servants, and employees.
A notable point of the new salary policy is the stipulation that the minimum salary level in the public sector will be equivalent to the average minimum wage in the enterprise sector.
Currently, the minimum wage in the enterprise sector is divided into 4 regions: Region 1 is 4.68 million dong per month; Region 2 is 4.16 million dong per month; Region 3 is 3.64 million dong per month, and Region 4 is 3.25 million dong per month. Therefore, the current average minimum wage in the enterprise sector is over 3.9 million dong.
It is expected that by the end of this year, the Ministry of Labor, Invalids and Social Affairs will propose to the government to increase the minimum regional wage. In recent discussions in the National Assembly, many delegates have proposed increasing the minimum regional wage simultaneously with the implementation of the salary reform policy from July 1, 2024.
Thus, if the minimum regional wage is increased for all 4 regions, the projected average minimum wage in the enterprise sector may also increase, possibly exceeding 4 million dong per month.
According to government information, the minimum salary of civil servants will be significantly increased from the initial salary of 3.5 million dong for employees with intermediate qualifications and a current salary coefficient of 1.86.
The average salary of civil servants will also have a starting point increase from coefficient 2.34 to 2.68. Currently, civil servants with a university degree will have a starting salary of over 4.2 million dong per month.
The highest salary level of civil servants, equivalent to grade 3 of senior experts (equivalent to the ministerial level), will also be expanded from coefficient 10 to 12. Therefore, the projected new highest salary of civil servants is expected to far exceed the current figure of 18 million dong.
In addition to this basic salary, the new salary system will also rearrange allowances, accounting for a maximum of 30% of the total salary fund (which may be higher or lower than 30%) and 10% of bonuses.
Therefore, considering both the basic salary, allowances, and bonuses, the average salary of civil servants after the salary reform implementation is expected to increase by more than 32% compared to the average income of wage earners (7.5 million dong per month).
Conclusion
The salary reform from July 2024 marks an important step in building a fair and developed society. Through enhancing fairness, improving job evaluation mechanisms, and supporting businesses, this policy hopes to create a positive labor environment, encourage people’s contributions, and promote sustainable national development.
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