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On the morning of October 24, speaking at a group discussion on the socio-economic situation, Minister of Home Affairs Pham Thi Thanh Tra took the time to analyze the breakthroughs in the salary reform policy expected to be applied from July 1, 2024.
Happy and excited mood among cadres, civil servants and public employees
Minister Pham Thi Thanh Tra said that at this session, the National Assembly will officially approve the salary reform policy.
"I consider this to be the highlight and mark of this National Assembly session, both historical and topical, creating a joyful and exciting mood in society and among cadres, civil servants and public employees," the Minister emphasized.
According to the Minister of Home Affairs, implementing the wage reform policy requires outstanding efforts from all levels and sectors in recent times. This includes efforts in creating resources for wage reform.
"In the difficult context due to the impact of the Covid-19 pandemic, the double consequences of the world and domestic situation, the economy is difficult but we are still determined to 'tighten our belts', so far we have enough resources as the Prime Minister reported that there is 560 trillion VND to serve salary reform from July 1, 2024 to 2026", Minister Pham Thi Thanh Tra emphasized, this is a great effort of the entire political system.
The second highlight, according to the commander of the internal affairs sector, is that recently, the whole country has made efforts to reorganize the apparatus and streamline the payroll. "This is the revolution in streamlining the payroll so far and we have been determined to do it. From there, we have created important resources to serve salary reform," said Ms. Tra.
In addition, a factor contributing to the implementation of salary reform is that recently the Government has focused on perfecting the civil service institutional system, from amending laws to resolutions and decrees to restructure and rebuild the civil service to suit the requirements of the new situation.
The Minister of Home Affairs also analyzed that salary reform not only improves the lives of officials, civil servants, employees, workers and their families, but also importantly improves labor productivity and national competitiveness.
In addition, wage reform is also a driving force for economic growth. Because when wages are raised, it will affect supply and demand.
Salary reform also aims to restructure, rearrange and improve the quality of the staff, civil servants and public employees towards streamlining, effectiveness and efficiency. From there, it also meets the requirements of sustainable salary reform.
Salary reform with a breakthrough mindset
Regarding the content of salary reform, the Minister of Home Affairs said that the new salary policy with a completely breakthrough mindset is in line with world trends and in line with the socialist-oriented market economy.
Accordingly, the new salary system is built according to job positions and leadership and management titles to replace the current salary coefficient system that has existed since 2004.
"Through four salary reforms, I have never seen a salary policy as synchronous, comprehensive, and fundamental as this one. This is a new salary policy that is very progressive, fair, truly harmonious, and reasonable," Minister Pham Thi Thanh Tra affirmed.
Going into the specific content of salary policy reform, the Minister said that the new salary policy is restructured to calculate the basic salary rate (70%), the allowance rate (30%); eliminate all special salary policy mechanisms and add 10% of the basic salary so that heads of agencies and units can achieve the goal of rewarding cadres and civil servants who excellently complete assigned tasks.
"These new issues are in line with the trend of fairness and progress," the Minister of Home Affairs emphasized.
She also informed that according to this new salary policy, 36 units in some industries are no longer entitled to special salary policies (higher than the general level).
"If the salary table is built horizontally, some agencies may have their salaries reduced by 50%. But according to the spirit of Resolution 27, agencies with special salary policies will be reserved (not increased but not reduced). This is to aim for fairness with salary earners," the Minister analyzed.
However, she also noted that the resources to prepare for the new salary reform will be implemented from July 1, 2024. After 2024, it will continue to increase by 7% to compensate for inflation and increase GDP, and will only be guaranteed until 2026. After 2026, if efforts are not made, it will be difficult to continue implementing the new salary policy.
Therefore, in order to have a source to implement a sustainable wage reform policy and ensure annual growth rate, 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 how to save spending to ensure there is a source for salaries needs attention," the Minister noted.
Another issue that the Minister of Home Affairs is concerned about is the propaganda work to raise awareness. Because in the process of increasing salaries, there will be a period of transferring old salaries to new salaries according to job positions, so it cannot be synchronized immediately and there will be problems arising.
"But what we expect most when reforming salaries is that the education and health sectors will achieve the goal of increasing their salaries. Then society will be excited, civil servants, especially teachers and doctors, will be excited," said the commander of the Interior sector.
In addition, the Minister of Home Affairs also emphasized that there is no other way to do it, which is to continue to reorganize the apparatus and streamline the payroll to reduce the number of people receiving salaries from the state budget. As for civil servants, efforts have been made to streamline relatively so far. Therefore, in the coming time, there will be a better mechanism to reduce the number of civil servants receiving state salaries to have more resources to implement salary reform.
Home Minister answers the question 'where will the money come from to increase salaries' from July 1, 2024
The Minister of Home Affairs said that it is expected that when implementing the new salary policy, increasing salaries for officials, civil servants and public employees from July 1, 2024, the budget will need to spend an additional nearly 500,000 billion VND in the 2024 - 2026 period.
Finance Minister: Salary reform and pension increase from July 1, 2024
With the central budget allocated to implement salary reform of about 132 trillion VND and the accumulated source of local budgets of about 430 trillion VND, it is enough to synchronously reform salary policy from July 1, 2024.
Prime Minister: There is 560 trillion VND, enough resources to reform salaries in 3 years
Prime Minister Pham Minh Chinh said that thanks to promoting increased revenue and saving expenditure, the Government has set aside about 560 trillion VND for the salary fund to date, ensuring enough resources for salary reform in the 3 years of 2024 - 2026.
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