Wage increase and solutions to control prices and inflation

Recently, the National Assembly agreed to implement salary reform, pension adjustment, social insurance allowance, preferential allowance for meritorious people and social allowance from July 1, 2024. In particular, the basic salary will be adjusted from VND 1.8 million/month to VND 2.34 million/month (an increase of 30%).

The annual adjustment of basic salary is an effort of the Government to achieve the goal of salary being the main income, ensuring the life of wage earners, contributing to improving the lives of workers, and creating motivation to improve productivity.

Increasing salaries for all wage earners and increasing allowances has a positive impact on many groups of people, contributing to improving the lives of wage earners, beneficiaries of allowances, subsidies and support policies associated with the basic salary.

The salary increase also creates motivation to improve productivity and work efficiency, contributes to social stability, demonstrates the Party and State's concern for cadres, civil servants, public employees, armed forces and beneficiaries of regimes, policies on subsidies and allowances. At the same time, it promotes economic and social growth and development.

The National Assembly approved a 30% increase in basic salary and a 15% increase in pensions from July 1, 2024.

The joy of tens of millions of people

The highest increase in basic salary ever has brought joy to tens of millions of workers and civil servants in general. The increase in basic salary is very meaningful and necessary in the current difficult economic context. The new salary level not only helps improve life but also motivates civil servants and civil servants to continue to contribute and stick to their daily work.

Ms. Lam Quynh Nga - Head of the residential area in District 10, Ho Chi Minh City expressed her joy when the basic salary was adjusted to increase: "Actually, in my current life, I see that the cost of living is still quite high compared to people's income. The fact that the salary has increased more than the previous time, I see that this issue is not only for me but also for all people to be interested and excited. I also hope that when the salary increases, the quality of life as well as price stability will not have too many big fluctuations, affecting people's living expenses."

Ms. Nga's joy is not only a personal feeling but also a common feeling of many other workers.

Ms. Do Thi Thu Hang, a doctor at Nam Dinh Province Obstetrics and Gynecology Hospital with many years of experience in the profession, said that she was among those working in the health sector who received a high salary increase: "In recent years of fighting the epidemic, the lives of medical staff have been very difficult and hard, but this year, their salaries have been increased. I am very excited because the State has paid attention to the lives of civil servants and employees who are facing difficulties. That is also a motivation for them to stick with the facility where they are working for a longer time, in addition to the job they have been doing for many years."

Fear of inflation and rising prices

Besides the joy of salary increase, many workers are worried about the situation of "wages increasing without price increase". Whether salary increase will lead to price increase of goods and services, causing pressure on inflation or not is a matter of concern for many people. Therefore, only when inflation is controlled, salary increase will be truly meaningful, ensuring to improve the lives of cadres, civil servants, public employees, workers and their families.

"If a 30% salary increase leads to inflation, workers will not benefit much because actual prices are much higher," said Minister Pham Thi Thanh Tra.

Because if inflation is pushed up too high, even though officials, civil servants, and public employees receive very high salaries, salary increases will not solve any problems.

Recording the situation of goods and prices at some markets in Ho Chi Minh City shows that the selling prices of many types of goods have continuously increased before the time of salary increase. In particular, food groups such as pork, rice, eggs, vegetables and fruits have increased in price from 5-10% depending on each product. However, at supermarkets, market prices are still stable.

People are worried that if wages increase, prices will increase accordingly (Illustration photo).

Mr. Le Hoang Phong, Deputy Director of Hoc Mon Agricultural and Food Wholesale Market, said: "From the beginning of June until now, fresh products such as meat have been recorded to have increased by 5-10%, while vegetables, tubers and fruits have increased by 10-50%. Frozen products have also increased by 15-20%. Prices are determined by the market, if more goods are purchased, supply and demand will decrease, if less goods are purchased, purchasing power will increase. In general, goods arriving at the market at the present time are at a stable level of 2,300 tons. Specifically, vegetables and fruits are 1,610 tons, fruits are 282 tons, and pork is 367 tons. Regarding prices, most of the vegetables and fruits are due to abundant supply sources".

Mr. Nguyen Ngoc Thang - Director of Co.opmart's operations department emphasized that prices at all Co.opmart supermarkets nationwide are currently stable, with no fluctuations when there is information about salary increases : "Prices at all Co.opmart supermarkets nationwide are currently stable, with no fluctuations when there is information about salary increases. Currently, Co.opmart in July, during the summer, has prepared a stable source of goods and ensured that prices will not increase and launched promotions on the occasion of the International Cooperative Day. It will also have a positive impact when increasing salaries and stimulating trade and services. Up to now, Co.op has always committed to customers in its year-round operations, to bring the best prices to customers and minimize price increases."

Price stabilization efforts

The increase in basic salary from July 1st brings many benefits to workers, helps improve their lives and motivates them to work. However, it also poses many challenges regarding the price situation and the risk of inflation. To ensure that the salary increase really brings positive effects, it is necessary to have measures to control prices, support businesses and strengthen information work. The Government, businesses and people need to coordinate closely to overcome these challenges, towards a sustainable economic development and improved people's lives.

To avoid the phenomenon of “increased wages, increased prices”, the Government is focusing on solving it. In a recent meeting of the Steering Committee for Price Management, Deputy Prime Minister Le Minh Khai, Head of the Steering Committee, emphasized: “Do not let salary increases lead to unreasonable price increases, become a habit, and lose the meaning of salary increases”.

To do this, the problem is to closely monitor and tightly control commodity prices, propose appropriate and timely solutions and scenarios, and control inflation within the limit allowed by the National Assembly of 4.5%.

At the regular Government meeting last April, the Prime Minister requested to strengthen price and market management, have a suitable roadmap to adjust prices of State-managed goods and public services; "no sudden price increases, no price increases for many goods at the same time, no price increases at the time of salary increases."

To stabilize prices, the Department of Industry and Trade of Ho Chi Minh City also regularly monitors the price movements of goods as well as the balance of supply and demand of essential goods, promptly receives promotional notices from units and enterprises to facilitate consumer stimulus activities in accordance with regulations; coordinates with relevant agencies in price management, maintains the market of goods at a stable level, and prevents hoarding and unreasonable price speculation in the area.

Source: https://congthuong.vn/tang-luong-va-giai-phap-kiem-soat-gia-va-lam-phat-329083.html