Q&A: Can Group 3 public service units apply the salary-reform fund rules applicable to Group 1 and Group 2 units?
RegHub explainer by New MarketerLast updated:
Based on:Thông tư số 88/2024/TT-BTC ngày 24/12/2024 của Bộ Tài chính - Ministry of Finance
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The Ministry of Finance clarifies: a public service unit classified as Group 3 for 2021-2025 by the provincial People's Committee must set aside salary-reform funds for 2025 under Point g, Clause 3, Article 4 of Circular 88/2024/TT-BTC (which covers Group 3 and fully state-funded units). It may not apply Point h, which is reserved for Group 1 and Group 2 self-financing units. If in practice the unit is already fully self-financing for recurrent expenditure (equivalent to Group 2), it may seek reclassification by preparing a five-year financial autonomy plan, proposing an upgraded autonomy level, and reporting to its supervisory authority for an official decision.
Background
The enquirer is a public service unit classified as Group 3 (partly self-financing for recurrent expenditure) under a provincial People's Committee decision. In practice, the state budget provides no recurrent funding and the unit covers all recurrent costs itself, effectively resembling a Group 2 unit. The question is whether the unit may apply Point h, Clause 3, Article 4 of Circular 88/2024/TT-BTC, which allows self-determined salary-reform contribution rates.
Ministry of Finance Response
Based on the question, the unit is legally classified as Group 3 for 2021-2025. Therefore:
- Salary-reform fund contributions for 2025 must follow Point g, Clause 3, Article 4 of Circular 88/2024/TT-BTC dated 24 December 2024.
- Point h applies exclusively to Group 1 and Group 2 units (those fully self-financing investment and/or recurrent expenditure). A Group 3 unit does not yet qualify.
Path Forward
To gain eligibility under Point h, the unit should:
- Develop a five-year financial autonomy plan.
- Propose reclassification to a higher autonomy level, consistent with its socio-economic development stage and assigned functions.
- Submit the proposal to its supervisory authority for formal approval.
Applicable Regulations
- Circular 88/2024/TT-BTC dated 24 December 2024, Ministry of Finance (state budget implementation 2025).