Circular on salary reform takes effect from February 2025

HƯƠNG NHA |

From February 7, 2025, the new Circular regulating state budget revenue and expenditure for salary reform officially takes effect.

Circular 88/2024/TT-BTC dated December 24, 2024 of the Ministry of Finance stipulates the organization of implementation of the state budget estimate for 2025, including regulations on state budget revenue and expenditure for 2025 for salary reform.

Accordingly, the Circular clearly states that from July 1, 2024, the scope of using the accumulated resources for salary reform of the central budget will be expanded to adjust pensions, social insurance benefits, monthly allowances, preferential allowances for people with meritorious services and streamlining payrolls; using the salary reform resources of the local budget to implement social security policies issued by the Central Government and streamlining payrolls.

Localities use the remaining salary reform funds to invest in regional and national connectivity projects, and key national projects implemented locally according to regulations of competent authorities. In cases where the locality has a large surplus, the People's Committees of provinces and centrally run cities, after submitting a resolution to the People's Council of the same level, shall issue a written report to the Prime Minister committing to ensure funding for salary reform and implementation of social security policies issued by the Central Government for the entire roadmap until 2030 and shall not request support from the central budget.

Synthesize a portion of the remaining revenue from local budget salary reform by the end of 2024 to arrange the local budget expenditure estimate for 2025 to reduce the pressure on the central budget balance to have to allocate additional funds for local budgets to implement salary reform.

The decentralization of revenue sources and expenditure tasks among local government budgets and the percentage (%) of revenue distribution among local budget levels shall be implemented in accordance with the resolution of the provincial People's Council decided for the year during the budget stabilization period.

For 2025, the Provincial People's Committee shall submit to the People's Council of the same level, based on the budget capacity, the additional budget balance for the lower-level budget to ensure local budget expenditure needs.

In special cases where revenue from a new project coming into operation increases the local budget revenue, the provincial People's Committee shall submit it to the People's Council of the same level for decision in accordance with Clause 7, Article 9 of the 2015 State Budget Law.

At the same time, the provincial budget supplements the lower-level budget to implement salary reform according to the resolution of the provincial People's Council and the decision of the People's Committee at the same level.

This Circular takes effect from February 7, 2025 and applies to the 2025 budget year.

According to the 2024 performance report of the Ministry of Home Affairs, advising on the implementation of 4/6 tasks on salary policy reform according to Resolution No. 27-NQ/TW of 2018 of the Central Committee is one of the outstanding results of this ministry in 2024.

According to Resolution No. 27-NQ/TW, there are still 2 tasks on salary reform that have not been implemented, including: New salary tables (removing basic salary and salary coefficient); restructuring and arranging into 9 new allowance regimes.

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