Why does the basic salary increase by 30%, but pension only increase by 15%?

Vice Chairman of the Social Committee Dang Thuan Phong - Photo: GIA HAN

At the press conference on the results of the 7th session of the 15th National Assembly, Tuoi Tre Online asked to know why from July 1, the basic salary increased by 30% (from 1.8 million VND to 2.34 million VND/month) but pension increased by only 15%?

Shift from 11.5% pension increase to 15%

Responding to this content, Vice Chairman of the Social Committee Dang Thuan Phong said that many retirees also called to ask him.

Mr. Phong said that in recent times, pensions for retirees have been continuously raised, based on the increase in the consumer price index (CPI) and economic growth.

He informed that according to the calculation of the Salary Reform Steering Committee, with the number of pension increases in the past time, the pension increase of only 11.5% will be equal to 30% of that of cadres and civil servants.

However, determining pensioners is difficult and this year, when salaries increase, prices will increase. Therefore, the Steering Committee for Salary Reform has considered a lot and determined to change from 11.5% to 15%.

"The increase is a little higher to prepare for the upcoming end of the year. The pension is increased by 15%, but in reality, if we add up the past years when continuously increasing according to the CPI index, it is 30% higher than that of civil servants," said Mr. Phong.

Salary reform needs to be done carefully and effectively

Regarding the reform of salary policy according to Resolution 27 of the Central Committee, Mr. Dang Thuan Phong said that it has been postponed 3 times but has not been completed yet and the roadmap is cautious, certain and effective.

Regarding why the roadmap is so long, Mr. Phong explained that the Steering Committee for Salary Reform has held 24-25 meetings, of which 4 contents have been implemented, while 2 contents have not been implemented yet.

With the new payroll at the base and determining job positions, streamlining the payroll, paying appropriate salaries for each position.

According to Mr. Phong, the reform process is long but the determination of job positions is not synchronous and not unified between ministries and localities despite being in the same field.

The salary scale of the armed forces also fluctuates. For public service units, the number of full autonomy, autonomy in regular expenditures and investment is very low, only 30%.

The remaining 70% of the state budget still has to be spent. If we cannot arrange jobs in such public establishments, it will be very difficult to reform salaries.

He emphasized the Steering Committee's view is to postpone the salary reform time so that the Government can carefully calculate.

The principle is to determine job positions on the basis of streamlining the payroll, then we can calculate different salary coefficients, then we can reform salaries. In the near future, the Government will review all salary tables and job positions to have specific calculations.

Another problem is the arrangement of 9 allowance groups. The current salary structure is 40 - 60, that is 40% allowance, 60% basic salary. According to the new design when rearranging 9 allowance groups, the ratio is 30 - 70.

"If not handled synchronously, many people will be disadvantaged. Because in remote and especially difficult areas, thanks to this allowance.

Compared to the current salary reform, it will be higher if reform is applied, which does not encourage talent and effort," said Mr. Phong.

He added that if all 9 allowances were fully applied, there would be many problems that would be difficult to explain and would not be compatible with the beneficiaries. Therefore, the Steering Committee allowed this part to be retained for further calculation, research and completion.

In addition, more than 20 legal documents related to basic salary must be amended, so the Government has not been able to submit them yet. Up to now, the Government has not been able to submit them for processing.

Mr. Phong also informed about the addition of 10% of the reward fund, on that basis there will be a source of encouragement for each agency and unit when implementing salary reform.

Source: https://tuoitre.vn/vi-sao-luong-co-so-tang-30-luong-huu-chi-tang-15-20240629114622681.htm