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Vietnam Today

Salary reform heats up at the Party Central Committee's 7th plenary meeting

Released at: 20:57, 10/05/2018

Salary reform heats up at the Party Central Committee's 7th plenary meeting

Photo: VNA

Party Central Committee's seventh plenary meeting takes place between May 7 – 12.

by Van Long

According to a report from the Vietnam News Agency, the 12th-tenure of the Central Committee of the Communist Party of Vietnam (CPV), under the chairmanship of Politburo member and Chairwoman of the National Assembly Ms. Nguyen Thi Kim Ngan, discussed salary reform for officials, public servants, the armed forces and workers on May 9, the third day of its seventh plenary meeting.

Minister of Home Affairs Le Vinh Tan, who is also a Party Central Committee member, delivered a report clarifying their objectives, tasks and solutions in implementing the salary policy reform project. 

He emphasized the need to come up with drastic solutions regarding finance and budget, personnel reduction, the restructuring of the contingent of officials and public servants, and the streamlining of the apparatus in the political system in order to ensure operational efficiency. 

Mr. Tan also stressed the importance of information work to raise public awareness on salary reform, as well as the role of the people, fatherland front and socio-political organizations in implementing reform. 

Members of the Party Central Committee (PCC) reached a high consensus on the issuance of a resolution on salary reform. 

Deputy Defense Minister General Be Xuan Truong, lauded the feasibility of the project, saying that it matches the country’s development pace and the salary policies of developed countries around the world. 

He said that among the solutions set forth in the project, mobilization of resources and reduction of personnel are the most important, adding that a 10 per cent reduction in personnel each year could facilitate salary reform. 

Mr. Pham Hoai Nam, a delegate from the Naval Service, praised the thorough and scientific preparations for the project. 

He that said the income and expenditure of officials in different regions should be taken into account during the implementation of the project, explaining that socio-economic development in localities and regions are not the same. 

Mr. Ngo Dong Hai, the deputy head of the PCC’s Economic Commission, highlighted the breakthroughs of the project, noting that the problem lies in developing a modern salary system that’s suitable to the country’s development, and to make salaries the main source of income for officials, public servants, the armed forces, and workers. These should be high enough to motivate them to fulfill their assigned tasks. 

Delegates suggested implementing four solutions, focusing on using salaries in the public sector as a basis to decide the basic salary in other fields; and giving clear regulations on macro and micro management on salary policies to promote the role, responsibilities and management abilities of localities and organizations.

They also gave solutions to implement the project more effectively, while stressing salaries based on job title, working position, and performance. 

The delegates stressed the need to devise mechanisms, regulations and directions to perform projects well. 

Attendees agreed that it is necessary to consistently build the payroll, arrange staff in line with their job titles, and develop the payroll in line with standards for job titles. 

The delegates said that effective public administration must be based on a contingence of civil servants and officials who are professional, virtuous, and highly motivated.

It’s also necessary to fully implement the remuneration regime so that civil servants can focus on their work and develop their careers.

Finance Minister Dinh Tien Dung lauded the breakthrough measures in the salary reform policy. The policy is expected to ensure transparency, fairness and empowerment for units and localities in terms of salary payment based on labor results. 

He said that the ministry would press on with the plan in accordance with the Party Central Committee’s Resolutions No.18 and No.19, towards the goal of restructuring public debts to ensure safe and sustainable national finance in line with the Politburo’s Resolution No.07. 

Accordingly, development expenditure will account for nearly 26 per cent of total state spending while regular spending and deficit will stay below 3.5 per cent of the gross domestic product by 2020, and lower in subsequent years. 

Salary expenditure is expected to increase by nearly VND35-40 trillion ($1.55 – 1.78 billion) by 2021 and 2022. 

From 2021-2022, the state budget deficit will make up 4-4.1 per cent of the GDP. If official development assistance (ODA) disbursement for 2016-2020 exceeds the plan by 2.4-2.5 per cent of the GDP, and public debts will be around 64.5 per cent of the GDP, close to the public debt limit allowed by the National Assembly. 

If the minimum wage is adjusted to VND4.140 million ($181.7) per month in 2021, the state budget will need roughly VND115 trillion ($5 billion) by 2021 and VND95 trillion ($4.1billion) by 2022, according to the Finance Minister.

President of the Vietnam General Confederation of Labor Bui Van Cuong said that workers have high expectations for the Party’s decisions on salary and social insurance. 

In order to attract a young and capable workforce, he supports the plan to offer higher salaries to qualified workers and make sure that tenured employees are not entitled to high salaries. 

He said that the state’s policy of not interfering with enterprises’ salary policies is new and progressive, adding that there should be specific regulations on the responsibilities of trade unions and organizations when negotiating salaries for workers in line with the law. 

In the near future, trade unions will sign collective labor agreements at the national and sectoral levels, as well as with employers.

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