Conclusion 83-KL/TW 2024 on wage reform, adjustment of pensions from July 1, 2024

CONCLUSION

of the Political Bureau
On wage reform; adjustment of pensions, social insurance allowance, preferential allowances for people with meritorious services, and social allowances from July 1, 2024

Taking the report of the Party Standing Committee of the Ministry of Home Affairs on wage reform; adjustment of pensions, social insurance allowance, preferential allowances for people with meritorious services, and social allowances from July 1, 2024 (Proposal No. 46-TTr/BCSD, dated May 31, 2024), and the opinions of relevant agencies into consideration, the Political Bureau concludes as follows:

1. Basically agree with the contents of the Proposal and the Report of the Party Standing Committee of the Ministry of Home Affairs on the development and implementation of specific contents of the new wage regime; adjustment of pensions, social insurance allowance, preferential allowances for people with meritorious services, and social allowances. This is a major and complex issue, involving many mechanisms and policies, making a profound impact on many groups in society; during the implementation, the following principles must be ensured:

a) Closely adhere to the Party's policies in Resolution No. 27-NQ/TW, dated May 21, 2018, Resolution No. 28-NQ/TW, dated May 23, 2018, and the current law regulations to implement wage reform policy and related policies in a suitable, step-by-step, cautious, and certain manner, ensuring feasibility, effectiveness, and the financial capacity of the state budget.

b) Ensure balance, fairness, and equality among the groups receiving salaries and allowances; harmoniously resolve social relationships, control social differentiation, and ensure social security and welfare for the people during the development process. The contents of the Central Resolutions that are clear and have sufficient conditions for implementation should be immediately carried out; issues that are still difficult and inadequate should continue to be researched, thoroughly reviewed, assessed for suitability and ensuring feasibility, gradually improved as well as avoid haste in implementation to achieve social consensus and prevent major disruptions.

c) Improve the living standards of those receiving salaries and allowances, create motivation to increase productivity and work efficiency, contribute to the socio-economic development of the country, and achieve social progress and fairness.

2. Regarding the content of wage reform under Resolution No. 27-NQ/TW

2.1. For the enterprise sector

Fully implement two contents: (1) Adjust the regional minimum wage (monthly and hourly) according to the provisions of the Labor Code (increase by 6% compared to 2023), taking effect from July 1, 2024. (2) Regulate the wage mechanism for state-owned enterprises in accordance with the content of Resolution No. 27-NQ/TW, taking effect from January 1, 2025, to align with the enterprise's fiscal year.

2.2. For cadres, civil servants, public employees, and armed forces (public sector)

The implementation of wage reform under Resolution No. 27-NQ/TW for cadres, civil servants, public employees, and armed forces faces many difficulties, obstacles, and inadequacies, so carrying out a thorough, comprehensive review and detailed study are necessary; at the same time, numerous regulations of the Party and laws of the State must be amended and supplemented to submit to the Central Committee for consideration and adjustment of certain contents of Resolution No. 27-NQ/TW to suit the practical situation. Based on this situation and Resolution No. 27-NQ/TW, the Political Bureau assigns the Government's Party Standing Committee to direct the Government to implement wage reform for public sector according to a reasonable, cautious, and feasible roadmap step by step. Accordingly, the following seven contents will be implemented:

(1) Adjust the basic wage from 1.8 million VND to 2.34 million VND (an increase of 30%) starting from July 1, 2024.

(2) Implement the bonus regime from July 1, 2024 (the bonus fund equals 10% of the basic salary fund). The bonus regime is tied to the responsibility of the head of the agency or unit in evaluating and ranking the performance level of waged individuals, promptly encouraging and motivating cadres, civil servants, public employees, and armed forces to improve the quality and efficiency of their work, thereby contributing to enhancing the effectiveness and efficiency of the political system; avoiding duplication with the provisions of the Law on Emulation and Reward.

(3) Perfect the wage increase regime in line with the transition to management and wage payment for cadres, civil servants, public employees, and armed forces.

(4) Clearly define and guide five funding sources for the wage regime, including: (1) From increased revenue and surplus funds from previous years allocated for wage reform by the locality. (2) From the central budget. (3) From a portion of revenue from public services. (4) From 10% additional savings in current expenditures. (5) From funds generated through streamlining the payroll.

(5) Improve the mechanism of wage and income management: Regulate and provide clear guidance on four contents, including: (1) The authority and responsibility of the head in evaluating and ranking cadres, civil servants, and public employees to determine wages, bonuses, and performance results. (2) The head’s authority to use the wage fund and regular expenditure funds to hire experts, scientists, and talented individuals to perform the tasks of the agency or unit, with the power to decide the payment level tied to the assigned tasks. (3) Expand the pilot application of increased wages to certain localities when conditions are met according to the Resolution No. 27-NQ/TW. (4) The mechanism of wage and income management must be compatible with the state budget and the revenue sources of public service units.

(6) Implement wages and income for agencies and units under special financial and income mechanisms:

Assign the Party Standing Committee: To direct the Government, ministries, and related agencies to continue reviewing the entire legal framework to propose amendments or abolish special financial and income mechanisms of agencies and units as appropriate; To maintain the difference between the increased wages and income of cadres, civil servants, and public employees from June 2024 compared to wages starting from July 1, 2024, after amending or abolishing the special financial and income mechanisms. In the interim, while awaiting amendments or abolition, implement as follow: From July 1, 2024, the monthly increased wages and income calculated based on the basic wage of 2.34 million VND/month under the special mechanism must be guaranteed not to exceed the increased wages and income received in June 2024.

(7) Regarding amendments and supplements to certain subsidy regimes: The Party Standing Committee leads and directs the research and decision on amending and supplementing the subsidy regime and special regime for the armed forces, and the subsidy regime, especially occupation-based subsidies for cadres, civil servants, and public employees in certain specialized fields that unreasonable issues arise during implementation.

3. Implementing adjustments to pensions, social insurance allowance, preferential allowances for people with meritorious services, and social allowances from July 1, 2024

a) To adjust the current pensions and social insurance allowance (as of June 2024) by an increase of 15%; For people receiving pensions before 1995, after the adjustment, if their pension is less than 3.2 million VND/month, it will be increased by 0.3 million VND/month, if their pension is between 3.2 million VND/month and less than 3.5 million VND/month, it will be adjusted to 3.5 million VND/month; To adjust preferential allowances for people with meritorious services according to the standard allowance from 2,055,000 VND to 2,789,000 VND/month (an increase of 35.7%), maintaining the current proportional relationship of preferential allowances to the standard allowance; To adjust social allowances according to the standard social assistance level from 360,000 VND to 500,000 VND/month (an increase of 38.9%).

b) In addition to funds for wage reform, the Political Bureau agrees to report to the CPV Central Committee on expanding the scope of using the central and local budget savings from wage policy reform to cover the adjustments to pensions, social insurance allowance, preferential allowances for people with meritorious services, social allowances, social security policies, and payroll streamlining.

4. For policies and regimes taking effect from July 1, 2024, if documents are issued after July 1, 2024, the allowances will be retroactively applied from July 1, 2024.

5. Organization of implementation

The Political Bureau requires party committees, party organizations, governments, the Fatherland Front, and political-social organizations at all levels to urgently implement the following key tasks based on this Conclusion:

5.1. The Central Organization Committee shall continue to assume the prime responsibility for, and coordinate with relevant committees, ministries, and sectors in, completing and reporting to the Political Bureau on the system of job position lists for cadres, civil servants, and public employees in the political system.

5.2. The Central Economic Commission shall assume the prime responsibility for the preliminary reviewing of implementation of Resolution No. 27-NQ/TW, then coordinate with Party Standing Committee of the Ministry of Home Affairs and relevant committees, ministries, and sectors to study, evaluate the appropriateness and feasibility, and propose the implementation of five wage tables and nine new subsidy regimes for the public sector to be submitted to the Central Committee for consideration after 2026, when the Political Bureau issues and implements the job position list system in the political system.

5.3. The Party Standing Committee of the Government shall: (1) Assume the prime responsibility for, and coordinate with the Party Delegation of the National Assembly in, identifying the contents that need to be amended and supplemented in legal documents, especially policies and regimes linked to the basic wage level and wage coefficients to ensure consistency and synchronization with the roadmap of wage reform for public sector. (2) Lead and direct the Government to adjust the basic wage level for cadres, civil servants, public employees, and the armed forces, and implement the contents of Resolution No. 27-NQ/TW in this Conclusion; additionally, direct relevant ministries and agencies to implement the contents according to their assigned functions and tasks; promptly report and seek guidance from the Political Bureau on issues that arise beyond their authority.

5.4. The CPV Central Committee’s Publicity and Education Commission shall assume the prime responsibility for, and coordinate with the Vietnam Fatherland Front and its member organizations in, thoroughly disseminating and widely publicizing the Conclusion of the Political Bureau with a view to creating social consensus during the implementation.