Salary increase regime when abolishing basic salary

Quỳnh Chi |

Reader Tran Luong asked: If salary reform applies 5 new salary tables and the basic salary level is abolished, how is the regular salary increase regime?

Youme Law Firm LLC said that according to Clause 2, Article 3 of Decree 73/2024/ND-CP, from July 1, 2024, the basic salary is VND 2,340,000/month.

According to Point b, Clause 3.1, Section 3 of Resolution 27-NQ/TW in 2018, salary reform will be developed and issued a new salary table system according to job positions, titles and leadership positions to replace the current salary table system; convert old salaries to new salaries, ensuring that they are not lower than current salaries.

The Politburo issued Conclusion 83-KL/TW in 2024. In which, Clause 5.2, Section 5, Conclusion 83-KL/TW in 2024 stipulates:

The Politburo requested the Central Economic Committee to preside over the preliminary review and propose the implementation of 5 new payrolls of the public sector accordingly to submit to the Central Government for consideration after 2026 when the Politburo promulgated and implemented the job position system system in the political system.

The new salary table will no longer apply the current basic salary and salary coefficient, instead, building a basic salary with a specific amount in the new salary table (Point c, Clause 3.1, Section 2 of Resolution 27-NQ/TW in 2018).

When implementing salary reform, the new salary table will be designed based on the determination of 5 factors according to Resolution 27-NQ/TW in 2018 as follows:

- Abolish the current basic salary and salary coefficient, build a basic salary with a specific amount in the new salary table.

- Unify the labor contract regime according to the provisions of the 2019 Labor Code (or service provision contract) for those working in executive and service work (requiring training level below intermediate level), do not apply the salary table for civil servants and public employees to these subjects.

- Determine the lowest salary level of civil servants and public employees in the public sector as the salary level of employees requiring intermediate training (level 1) not lower than the lowest salary level of trained workers in the enterprise sector.

- Expand the salary relationship as a basis for determining specific salary levels in the salary system, gradually approaching the salary relationship of the enterprise sector in accordance with the State's resources.

- Complete the regular salary increase regime and early salary increase for cadres, civil servants, public employees and armed forces in accordance with the provisions of the new salary table.

Accordingly, when salary reform abolishes the basic salary of VND 2,340,000, the 5 new salary tables for cadres, civil servants, public employees and armed forces after 2026 will have a regular salary increase regime to be completed in accordance with the provisions of the new salary table.

Note: The basic salary of VND 2,340,000/month can be changed to another level before salary reform. This depends on the Government's adjustment after reporting to the National Assembly for consideration and decision in accordance with the State budget capacity, consumer price index and economic growth rate of the country (Clause 3, Article 3 of Decree 73/2024/ND-CP).

Quỳnh Chi
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