Who will be entitled to seniority allowance when salary reform takes effect from July 1?

Spending on salary reform 470 trillion VND

At the recent 6th session, the National Assembly passed a Resolution on the 2024 state budget estimate, including the content on implementing salary policy from July 1, 2024.

The total central budget for salary reform is expected to be about 132 trillion VND; the accumulated local budget is about over 430 trillion VND.

Thus, the budget has allocated 562 trillion VND to ensure sufficient implementation of synchronous salary policy reform from July 1, 2024 according to Resolution 27/2018 of the 12th Central Committee on salary policy reform for cadres, civil servants, public employees, armed forces and employees in enterprises.

According to the Government's calculations, to implement salary reform, the total expected additional budget demand from the budget in the 2024-2026 period is more than VND499 trillion. Of which, the expenditure for salary reform is VND470 trillion, pension adjustment is VND11.1 trillion and preferential allowance for meritorious people is VND18 trillion.

The notable point of the new wage policy is that the minimum wage in the public sector is equal to the average minimum wage in the business sector. In addition, the new wage policy also expands the wage relationship from the current 1 - 2.34 - 10 to 1 - 2.68 - 12.

In addition to the basic salary, the new salary regime also rearranges allowances accounting for a maximum of 30% of the total salary fund (in some cases higher than 30% or lower than 30%) and 10% bonus.

Who gets to keep seniority allowance when salary reform occurs?

According to Resolution 27-NQ/TW in 2018, the current allowance regimes will be rearranged, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund as follows:

- Continue to apply concurrent allowances; seniority allowances exceeding the framework; regional allowances; job responsibility allowances; mobility allowances; security and defense service allowances and special allowances for armed forces (army, police, and cryptography).

- Merge preferential allowances by profession, responsibility allowances by profession and toxic and dangerous allowances (collectively called allowances by profession) applied to civil servants and public employees of professions and jobs with higher than normal working conditions and with appropriate preferential policies of the State (education and training, health, courts, prosecution, civil enforcement, inspection, examination, auditing, customs, forestry, market management...). Merge special allowances, attraction allowances and long-term work allowances in areas with particularly difficult socio-economic conditions into work allowances in particularly difficult areas.

- Abolish seniority allowances (except for the military, police, and cryptography to ensure salary correlation with cadres and civil servants); leadership position allowances (due to salary classification for leadership positions in the political system); allowances for party work and political and social organizations; public service allowances (due to being included in the basic salary); toxic and dangerous allowances (due to including working conditions with toxic and dangerous factors in occupational allowances).

- New regulations on allowances according to administrative unit classification for commune, district and provincial levels.

- Consistently allocate monthly allowances to non-professional workers at the commune, village and residential group levels based on the regular expenditure ratio of the People's Committee at the commune level; at the same time, stipulate the maximum number of non-professional workers at each type of commune, village and residential group. On that basis, the People's Committee at the commune level shall submit to the People's Council at the same level for specific regulations on positions eligible for allowances in the direction that one position can undertake many tasks but must ensure the quality and efficiency of the assigned work.

Thus, there will be 3 subjects that will be kept seniority allowance when reforming salary from July 1, 2024 to ensure salary correlation with cadres and civil servants including: military; police; cryptography.