National Assembly Chairman Vuong Dinh Hue said that when receiving international guests, leaders of many countries asked where Vietnam would get money to reform wages.
"They were even more surprised to learn that the Vietnamese Government has set aside VND560 trillion - about USD23 billion - for salary increases from now until 2026," National Assembly Chairman Vuong Dinh Hue said when answering the press about the National Assembly's activities in 2023.
He said that leaders of other countries think that Vietnam must spend all its money on highway investment, "but that's not true, each job has its own job". The increase in central budget revenue must be used for salary reform, the remaining 60% for other work. As for local budgets, the ratio is divided 50-50, "not allowed to be moved".
"Of course, the process of building a salary reform policy is also difficult. We have to balance many things, from assessing current resources to the impact on macro and micro issues," said the National Assembly Chairman.
Raising wages is the way people enjoy the fruits of innovation and is also a form of investment in human development. According to the National Assembly Chairman, when people do not enjoy the fruits, the meaning of innovation is also reduced, especially after the Covid-19 pandemic, the health of people and businesses is eroded.
National Assembly Chairman answers the press before the new year 2024. Photo: Pham Thang
The National Assembly Chairman assessed that increasing the salary and raising the minimum wage from 1.49 to 1.8 million VND per month is one of the outstanding decisions of the National Assembly in 2023.
From July 1, 2024, civil servants nationwide will be paid according to their job position, title and title. There are 861 civil servant positions, of which 137 are in the leadership and management group; 665 are in the specialized professional civil servant group; 37 are in the shared professional professional civil servant group; and 22 are in the support and service group.
Mr. Hue emphasized that this is not simply a periodic salary increase but a comprehensive reform of salary policy. Once the reform is completed, the income of cadres, civil servants and public employees will be paid according to their job position, in accordance with their capacity, individual contributions and their role, ensuring that their income is not lower than before.
The special feature of this reform policy is to set aside 10% of the salary fund for employers to pay bonuses and motivate employees. The level of this bonus depends on the contribution of each individual, so "some people get a lot but some people get nothing".
According to Mr. Hue, Vietnam's consumer price index in recent years has been at a good level but has not yet met expectations. With the decision to increase the minimum wage to 1.8 million VND, all cadres, civil servants and public employees will benefit, which is a form of stimulating consumption, creating more momentum for the economy. The wage increase also ensures the principle that people must participate in the innovation process for this process to be successful.
Mr. Tran Van Lam, Standing Member of the Finance and Budget Committee, said that the comprehensive reform of salary policy from July 1 is a timely and correct decision of the National Assembly, after two years of postponement due to Covid-19.
"Due to the pandemic, the improvement of income for people receiving salaries from the annual budget according to economic growth and currency devaluation has had to stop. Thus, in reality, the living standards and income of workers have both decreased," said Mr. Lam.
At this time, the epidemic situation has stabilized, the economy has begun to recover, so the salary reform roadmap needs to be implemented again. The state budget revenue in the past year has been stable. In 2022, it exceeded the estimate by a very high level, more than 400,000 billion VND. "The state budget and finance are still guaranteed to meet the need for salary reform," Mr. Lam affirmed.
According to the delegate, compared to workers whose salaries are increased regularly outside the budget, civil servants and public employees have not received a salary increase in the past, causing a large gap. Therefore, salary reform will improve workers' lives, support demand stimulation, increase the consumer price index and promote economic growth.
Mr. Tran Van Lam, Standing Member of the Finance and Budget Committee. Photo: National Assembly Media
The Standing Committee of the Finance and Budget Committee believes that determining job positions for salary payment is an important basis for streamlining the payroll and apparatus, thereby improving the quality and efficiency of operations. This is a key factor because if not determined by job position, the apparatus and salary fund will swell, creating a burden on the economy, while work efficiency will not meet the requirements.
With the overall reform of salary policy, the State will arrange suitable people, pay salaries according to quality and work results to ensure fairness and efficiency. Workers are motivated and encouraged to work when placed in the right position, their contributions are properly evaluated and they receive appropriate remuneration.
Resolution 27 of the Central Committee aims to reform the salaries of cadres, civil servants, public employees, armed forces and employees in enterprises from July 1, 2021. However, over the past two years, due to many adverse impacts, especially the Covid-19 pandemic, the roadmap for synchronous reform of salary policy has not been implemented.
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