The recent increase in salaries and allowances has brought joy to tens of millions of people in Vietnam. However, whether the quality of life will improve as a result of the higher pay hinges on how consumer prices are managed and how personal income tax is deducted for dependents. Why was the pay raise so sudden? The rise in base salary, pension, and allowance, with effect from July 1, 2024, was unexpectedly announced at a Ministry of Home Affairs press briefing on June 20, 2024. Many had anticipated that from July 1, salaries would be decided based on job, position and title in line with Resolution 27-NQ/TW of the Party Central Committee on salary reform and Resolution 104/2023/QH15 of the National Assembly on the 2024 budget estimate. In a report on salary reform submitted to the National Assembly on June 21, 2024, the Government pointed out issues with the implementation of the comprehensive salary reform in the public sector as per Resolution 27. For example, the abolishment of the base salary and salary coefficient to determine base salaries in specific amounts for new payrolls would give rise to three issues: (1) The correlation of new salaries among salary recipients is […]
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