Can you live on salary, inflation compensation?

Người Đưa TinNgười Đưa Tin10/05/2024


The National Assembly has passed Resolution 104/2023/QH15 on the State budget estimate for 2024, which includes provisions on salary reform. Accordingly, three important types of salaries, including civil servant salaries, pensions, and minimum wages, will increase from July 1, 2024.

With this expansion of the salary relationship, 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). In addition to this 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.

Policy - Salary reform: Can we live on salary, inflation compensation?

According to plan, the new salary policy will begin to be implemented from July 1 (Illustration photo).

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 VND499,000 billion. Of which, the expenditure for salary reform is VND470,000 billion, pension adjustment is VND11,100 billion and preferential allowance for meritorious people is VND18,000 billion.

Another noteworthy point is that from 2025, the Government will continue to adjust the salary levels in the salary tables to increase by an average of about 7%/year. That is, after implementing salary reform, there will be a new salary table with higher salaries than the current one, and civil servants and public employees will still receive a 7% salary increase every year.

The wage increase is 7% to compensate for inflation and is somewhat improved according to GDP growth and is implemented until the lowest wage of the fair sector is equal to or higher than the lowest wage of zone 1 of the enterprise sector.

In order to expedite regulations and documents to implement the new salary policy from July 1, 2024, the Steering Committee for the development and management of job positions in administrative agencies, organizations, and public service units has requested the completion of the construction of the Job Position Project before March 31, 2024, in conjunction with the structure of civil servants and public employees according to job positions in administrative agencies, organizations, and public service units. Subsequently, after completing the construction of the Job Position Project, starting from April 2024 onwards, the regulations on job positions will be reviewed, completed, and the job positions in administrative agencies, organizations, and public service units will be promptly adjusted, ensuring that they are consistent with the functions, tasks, powers, and organizational structure of each administrative agency, organization, and public service unit.

However, there are still some ministries and localities that have not yet established job positions as a basis for salary reform. Therefore, the issue of speeding up the progress is being "urged" by the Ministry of Home Affairs to be completed in May. At the same time, conferences are being held to contribute opinions to the draft Decrees and Circulars guiding the implementation of the new salary regime to ensure sufficient legal basis for implementation from July 1.

To prepare for salary reform from July 1, as well as to build job positions, Mr. Vu Dang Minh - Chief of Office of the Ministry of Home Affairs said that when implementing this, if the new salary is lower than the old salary, it is allowed to reserve the salary according to the spirit of Resolution 27, which is that the new salary is guaranteed not to be lower than the old salary.

According to Mr. Minh, to ensure that these cadres and civil servants can live a life that meets a certain fixed salary level, we are currently asking for a salary of about 5 million VND. That is, the regional minimum wage applies to these subjects. When we reform salaries, we will ensure that those with the lowest income will not be lower than 5 million VND/month.

The Chief of Office of the Ministry of Home Affairs informed that in the near future, the Secretariat will issue a Decision on the new salary regime for cadres and civil servants of the Party, the Fatherland Front and socio-political organizations. The Standing Committee of the National Assembly will issue a Resolution on the new salary regime applicable to cadres, civil servants, public employees, and those under the management authority of the Standing Committee of the National Assembly and the National Assembly. At the same time, 12 circulars will be issued with specific instructions on the salary scale system, payment methods, and salary calculation methods applicable to the new salary.

Speaking to the press, Minister of Home Affairs Pham Thi Thanh Tra emphasized that the National Assembly's approval of the salary reform policy this time is both historic and topical, creating a joyful and exciting mood in society and among cadres, civil servants and public employees. Implementing the salary reform policy is a remarkable effort of all levels and sectors in recent times. This includes the effort in creating resources for salary reform.

However, in order to have a source to implement a sustainable salary reform policy and ensure annual growth, according to the Minister of Home Affairs in the coming time, the top priority is to focus on creating sustainable financial resources. Therefore, how to collect the budget and save on spending to ensure a source for salaries after the 2024 - 2026 period is an issue that needs attention.

Minister of Home Affairs Pham Thi Thanh Tra also emphasized that recruitment, management, use, and evaluation of civil servants and public employees must be carried out according to job positions linked to output results and salary payment must be made according to job positions in accordance with the salary policy reform roadmap.

Recently, at the regular Government press conference in April, the Ministry of Home Affairs informed about the progress of drafting documents to implement salary policy reform from July 1, 2024 as well as ensuring resources to implement salary reform.

The Ministry of Home Affairs said that there are currently four major issues that need to be consulted with the Politburo regarding salary reform. One is to unify five salary scales and nine groups of allowances for leadership and management positions, along with bonus regimes for cadres, civil servants, and public employees of the armed forces. The second is to preserve salaries and incomes for cadres and civil servants holding leadership and management positions. The third is to implement a subsidy regime for cadres and civil servants whose basic salary is lower than the lowest salary of region one, applicable to the business sector. The fourth issue that needs to be consulted is the implementation of a fixed amount of money for cadres, civil servants, and non-professional workers at the commune level to apply the fixed amount to full-time cadres of grassroots government. And another important content is to ensure resources for salary reform.

Mr. Tran Van Lam - Standing Member of the National Assembly's Finance and Budget Committee said that implementing the new salary policy is a step towards achieving fairness, creating motivation for salary earners to improve work efficiency and quality. Achieving the goal of "enough to live" is a process, not a reform that can be achieved immediately. This time, the total salary fund increased by several dozen percent, it is difficult to say that this is a "breakthrough", but it is an improvement to create a salary payment mechanism according to job position. That is, paying salary according to work efficiency, creating motivation for employees to improve their responsibility and increase the efficiency of work quality in performing assigned tasks.

M.Vy (t/h)



Source: https://www.nguoiduatin.vn/cai-cach-tien-luong-co-the-song-bang-luong-bu-truot-gia-a662992.html

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