The reason why more than 134,000 officials and civil servants will not receive a salary increase from July 1, 2024
According to Vietnamnet•November 1, 2023 12:01
There are about 134,284 cadres and civil servants at 36 agencies and units that are applying special financial and salary income mechanisms that can enjoy new lower salaries and allowances than before, so it is expected that the current level will be retained when salary reform takes place from July 1, 2024.
Minister of Home Affairs Pham Thi Thanh Tra
One of the principles when implementing salary reform according to Resolution No. 27, 12th Central Committee, Session 7, on salary policy reform for cadres, civil servants, public employees, armed forces and employees in enterprises is to "convert old salaries to new salaries, ensuring that they are not lower than current salaries".
According to the salary policy reform plan being considered and approved by the National Assembly at this session to be applied from July 1, 2024, the new salary policy has 5 salary tables including: 1 salary table for positions and leadership titles in the political system (including public service units) from the central to commune level; 1 salary table for professional and technical positions for civil servants and public employees who do not hold leadership positions; 3 salary tables for the armed forces.
Minister of Home Affairs Pham Thi ThanhTra said that when implementing salary reform, 5 new salary tables will replace the current coefficient salary table that has existed since 2004. Accordingly, the new salary table system is built according to job positions and leadership and management titles, eliminating all specific salary policy mechanisms.
The Minister of Home Affairs said that after reviewing, there are 36 agencies and units in some sectors that are no longer entitled to special salary policies. In fact, if the salary table is built horizontally, some agencies may have their salaries reduced by 50%.
134,284 officials and civil servants can have their special salaries reserved.
Currently, subjects not belonging to state administrative agencies and units that are applying special financial and income mechanisms (with additional salaries in addition to the general regime) include: Armed forces and civil servants in public service units that are not financially autonomous, all have new salaries and allowances higher than before salary reform.
In addition, there are about 134,284 cadres and civil servants of state administrative agencies and units that are applying special financial and income mechanisms (with additional salaries in addition to the general regime from 0.66 times to 2.43 times), accounting for about 6.78% of the total payroll of cadres, civil servants and public employees, who will receive new salaries (including allowances) that may be lower than before the reform.
Because, Resolution No. 1/2021 of the National Assembly Standing Committee stipulates that for state administrative management agencies and units that are applying the fixed-budget mechanism or applying specific financial and income mechanisms when implementing salary reform, they must apply a unified salary, allowance and income regime; abolish special salary and income mechanisms and policies.
Therefore, when reforming salaries, these cases must still be transferred to the new salary. And when abolishing mechanisms and policies on salaries and special incomes, implementing salary reform from July 1, 2024, the new salaries, including allowances, of these officials and civil servants may be lower than before salary reform.
However, Resolution No. 27 also clearly states the principle of "converting old salary to new salary, ensuring that it is not lower than current salary".
Salary reform is one of the issues that National Assembly deputies are interested in discussing at the hall about the socio-economic situation. Photo: National Assembly
Therefore, the Government has proposed that if the basic salary plus new allowances is lower than the current salary (including the salary increase) before the salary reform, they will receive a salary reserve difference. This reserve difference will be reduced accordingly when the new salary is adjusted annually.
The provision for this difference reservation is consistent with the requirements of Resolution No. 27, ensuring fairness between salary recipients before and after salary reform.
At the same time, to handle the unreasonable cases of new recruitment (after salary reform) in 36 agencies and units receiving special salaries, the Government suggests that when these subjects are classified according to the new salary, the corresponding difference level should also be applied to those recruited before salary reform.
11,100 billion VND to adjust pensions
One of the things many people wonder about is whether pensions will increase when implementing salary reform?
With the new salary policy according to the Government's new salary reform plan, the total expected additional budget demand from the budget in the 2024 - 2026 period is more than VND 499,000 billion.
According to the Government's proposal, in the 499,000 billion VND to implement the salary reform roadmap from 2024 - 2026, in addition to spending 470,000 billion VND on salary reform, the Government will spend 11,100 billion VND to adjust pensions and 18,000 billion VND to pay preferential allowances for meritorious people.
Thus, when implementing salary reform, pensions and preferential allowances for meritorious people will also be adjusted accordingly.
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