There are 3 important types of salaries including civil servant salary, pension, and minimum wage that will increase from July 1, 2024, specifically as follows:

From July 1, 2024, salary reform will increase salaries of officials, civil servants and public employees.

The National Assembly passed Resolution 104/2023/QH15 on the state budget estimate for 2024, including the content on implementing salary reform from July 1, 2024.

Accordingly, the new wage policy expands the wage relationship from the current wage coefficient of 1 - 2.34 - 10 to 1 - 2.68 - 12.

With this expansion of salary relations, the lowest salary of civil servants and public employees will increase quite high (compared to the starting salary of 3.5 million VND for civil servants and public employees with intermediate qualifications, salary coefficient 1.86 currently).

At the same time, the average salary of civil servants and public employees also has a starting coefficient of 2.68 (higher than the current coefficient of 2.34). It is known that with a coefficient of 2.34, civil servants and public employees with university degrees have a starting salary of more than 4.2 million VND/month.

The highest salary of civil servants and public employees corresponding to level 3 of senior experts (equal to the salary of a Minister) has also been expanded from coefficient 10 to coefficient 12. Therefore, the new highest salary of civil servants and public employees is expected to be higher (compared to the current figure of 18 million VND).

Thus, from July 1, 2024, the average salary of civil servants and public employees will increase by about 30%. The specific salary increase for each subject will depend on the job position, work efficiency, etc.

Increase pensions and social insurance benefits from July 1, 2024

According to Vietnam Social Security, on November 10, 2023, the National Assembly passed Resolution No. 104/2023/QH15 on the state budget estimate for 2024. Accordingly, from July 1, 2024, comprehensive reform of wage policy will be implemented according to Resolution No. 27-NQ/TW dated May 21, 2018 of the 7th Conference of the 12th Central Executive Committee. At the same time, adjustments will be made to pensions, social insurance benefits, monthly allowances, preferential allowances for meritorious people and a number of social security policies currently linked to the basic salary.

This marks the beginning of a comprehensive reform of the country's wage policy, not only bringing new life to the pension system but also to social insurance benefits and other social security policies, all of which will be adjusted upwards from July 1, 2024. However, to determine how much the pension will increase in 2024, we must wait for the Government's detailed regulations.

Regional minimum wage increase by 6% from July 1, 2024

At noon on December 20, 2023, the National Wage Council held its second meeting of 2023 to discuss and negotiate a plan to adjust the regional minimum wage in 2024.

At the meeting, all members of the National Wage Council present at the meeting voted to finalize the 2024 regional minimum wage increase at 6%, effective from July 1, 2024.

According to Article 91 of the 2019 Labor Code, the minimum wage is explained as follows: it is the lowest wage paid to employees doing the simplest work under normal working conditions to ensure the minimum living standard of employees and their families, in accordance with socio-economic development conditions.

Pursuant to Clause 1, Article 3 of Decree 38/2022/ND-CP, the regional minimum wage is stipulated as follows:

Minimum wage

1. Regulations on monthly minimum wages and hourly minimum wages for employees working for employers by region are as follows:

2. The list of regions I, II, III and IV is specified in the Appendix issued with this Decree.

Thus, the minimum wage can be considered the lowest wage that a worker can receive when performing the simplest work under normal working conditions and must not be lower than the wage prescribed above.

As mentioned above, the National Wage Council has finalized the 2024 regional minimum wage increase at 6% from July 1, 2024, resulting in specific regional wage increases as follows:

Region I increased to 4.96 million VND/month (increased by 280,000 VND);

Region II increased to 4.41 million VND/month (increased by 250,000 VND);

Region III increased to 3.86 million VND/month (increased by 220,000 VND);

Region IV increased to 3.45 million VND/month (increase of 200,000 VND).

The hourly minimum wage also increased by 6% as follows:

Zone I is 23,800 VND/hour.

Zone II up to 21,200 VND/hour;

Zone III is 18,600 VND/hour;

Zone IV is 16,600 VND/hour.

Minh Hoa (t/h)