New salary mechanism: The right person, the right job, the right income.

VTV.vn - Paying salaries based on job position not only creates transparency in income but also helps employees feel secure in their work and proactively build their career development path.

Salaries have increased, but the cost of living has also changed.

Wage increases are always expected to improve workers' incomes and living standards. However, a major question is whether the rate of wage increase will keep pace with the rising cost of living. Looking back to 1996, a bowl of pho cost only about 2,000-3,000 VND, while today it commonly costs 40,000-50,000 VND, an increase of nearly 20 times. Gasoline prices have also increased about 10 times, and gold prices have increased more than 120 times. These figures show that the basic wage partly reflects changes in the price level and living standards. However, comparing it to only a few essential goods is insufficient to reflect the true value of income.

In reality, the base salary is merely a basis for calculating wages. With a starting coefficient of 2.34, the actual income received by workers is higher than the base salary. However, at the same time, they also have to pay for many living expenses such as food, transportation, utilities, tuition fees, and other incidental costs. Notably, after three decades, the spending structure of families has also changed significantly. Many new expenses have emerged that were not common before, such as mobile phones, internet, travel , or foreign language lessons for children.

This shows that the gap between the base salary, nominal salary, and the actual living wage remains a major problem. More importantly, raising wages should ensure that workers earn an income commensurate with their abilities and contributions.

A salary increase to keep up with the pace of life.

Paying salaries based on job position aims for fairness and efficiency.

One of the expected directions is a salary mechanism based on job position and performance-based bonuses. In a recent interview with the press, Mr. Le Quang Trung – former Deputy Director in charge of the Employment Department (Ministry of Labor, War Invalids and Social Affairs, now the Ministry of Interior ) – stated that a fundamental issue in salary reform is the need to innovate the salary payment mechanism to link it to job position and work performance. This is an inevitable trend adopted by many countries.

"To achieve this, we must first clearly define each job position, with specific tasks and clear requirements. For each job position, we need to specify exactly how many tasks are involved. Each task must be explained as to why it needs to be performed in this particular job position and not another; and regulations must be issued to evaluate KPIs (key performance indicators)," Mr. Le Quang Trung pointed out.

This aims to measure and quantify the level of achievement of goals by an individual, department, or organization, helping to evaluate performance clearly, transparently, and objectively. He also proposed clear, specific, and publicly available regulations for handling cases of failure to complete tasks. Salary reform also considers encouraging those who deliver outstanding work performance, have many achievements and initiatives, and apply new science and technology; while also providing appropriate forms of recognition and rewards to motivate them promptly.

Sharing the same view, Associate Professor Tran Van Trung - Department of Public Management, Faculty of Business Administration, University of Economics and Law (Vietnam National University Ho Chi Minh City) - believes that for salaries to truly become the main source of income for officials, civil servants, and public employees, it is necessary to shift from a "salary increase" mindset to a "comprehensive reform of the salary payment mechanism," with a focus on paying salaries based on job position linked to work performance, along with sustainable financial resources and improved quality of public administration.

From policy to practice

In fact, many localities have begun to concretize this requirement. Recently, the Standing Committee of the Hanoi City Party Committee issued Regulation No. 11-QD/TU on monthly evaluation and ranking of cadres, civil servants, public employees, and contract workers, linked to the Key Results-Based Management (OKR) method, measured by Key Performance Indicators (KPI).

According to regulations, the evaluation is conducted on a 100-point scale, with general criteria accounting for a maximum of 30 points and criteria related to task performance accounting for a maximum of 70 points. The ranking results are divided into four levels: Category A (excellently completed the task, 90 to 100 points), Category B (goodly completed the task, 70 to under 90 points), Category C (satisfactory completed the task, 50 to under 70 points), and Category D (unsatisfactory completed the task, below 50 points).

The evaluation is based on assigned responsibilities and tasks, as well as work performance, including progress, quality, specific products, quantity of work, complexity, and adherence to discipline. This is seen as a concrete implementation of the principle of "salary based on work, bonus based on performance," helping to link salary payments more closely to labor productivity and task completion levels, rather than relying heavily on seniority as before.

Job positions are a crucial prerequisite for implementing salary reforms.

Having worked in a government agency for nearly 10 years, Mr. Nguyen Xuan Truong (Hanoi) believes that the salary system based on job position motivates him to strive for advancement. "When I work more actively, I feel that the salary I receive is commensurate with the effort I put in. If I try harder and take on a higher position, the salary will also be higher. This creates clear goals and motivation for the future," Mr. Truong shared.

In the private sector, Mr. Tran Thien Quy (Hanoi) is also receiving a salary based on his job position. According to him, the salary is agreed upon from the beginning and has a periodic adjustment schedule, helping employees be more proactive in their career orientation and stabilize their income. Mr. Quy said: "Compared to the KPI-based salary system, where some months have high performance and good income, but other months are lower than expected, a salary based on job position provides more stability and more motivation for development."

Salary increases are always something employees look forward to. But what they need more than just a paycheck increase is the feeling that their efforts are properly recognized, that their income is sufficient to ensure a decent life, and that they have enough motivation to continue contributing. When salaries accurately reflect the value of the work, pay the right people for the right jobs, and encourage good performance, then the story of salaries will no longer be about the percentage increase, but will truly become a driving force for both employees and the system.

Source: https://vtv.vn/co-che-luong-moi-dung-nguoi-dung-viec-dung-thu-nhap-100260514084341352.htm