'How can an engineer survive with a salary of 3.5 million after graduation?'

On the morning of October 24, the National Assembly discussed socio -economic issues, the State budget for 2023, and the 2024 plan, including salary reform expected to be implemented from July 1, 2024.

Regarding this issue, Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung said that Resolution 27 of the 12th Central Committee was issued in 2018, but so far it has not been implemented much, each year the salary is adjusted by 7% but in fact it is to compensate for inflation, not to reform the salary.

'Doanh nghiệp nhà nước thua lỗ, công nhân không thu nhập nhưng quản lý lương rất cao' - Ảnh 1. — Minister of Labor, Invalids and Social Affairs Dao Ngoc Dung

Therefore, Mr. Dung believes that the time is ripe, without salary reform, it is impossible. "There is no other way, the conditions are sufficient. We have missed our appointment with cadres, civil servants and public employees three times," Mr. Dung emphasized.

Citing the salary of a graduate engineer at 3.5 million VND, lower than the minimum regional salary of the private sector (4 million VND), Mr. Dung said: "Then how can we live? Let's ask the question of a salary that ensures the lives of them and their families, is that okay?"

From there, Minister Dao Ngoc Dung proposed to properly implement the salary reform roadmap and hoped for the National Assembly's support.

Salary increases every 3 years, the janitor's salary is higher than the engineer's.

According to Mr. Dung, along with reforming public sector salaries, it is necessary to reform state enterprise salaries as well as adjust salaries for retirees and other groups accordingly.

For the public sector, Mr. Dao Ngoc Dung said the most important thing is to eliminate the basic salary. "This is the root, the new salary regime will be paid according to job position with 5 salary scales," Mr. Dung said.

In the state-owned enterprise sector, there is currently a situation where businesses are losing money, workers have no income but managers have very high salaries, because they eat a completely different payroll than the workers.

Therefore, Mr. Dung proposed to reform salaries in this area in the direction that managers receive the same salary as workers, and when profits are high, both receive high benefits. Second, completely separate managers from supervisors.

Third, the State does not intervene in the salary scale, enterprises issue it completely, then the State sets the minimum wage for workers. "Currently, the salary scale increases every 3 years, sometimes a janitor's salary is higher than that of a graduate engineer," he said.

Mr. Dao Ngoc Dung also said that another subject that needs attention when reforming salaries is the salary of retirees and sponsored subjects. "From July 1, 2024, when the basic salary is abolished, how will retirees be resolved? Will their salaries be reformed? If they are not raised, they will fall behind and have a lower standard of living," Mr. Dung wondered.

Minister Dung suggested that, in addition to reforming salaries in the state sector, it is necessary to go hand in hand with the state enterprise sector and appropriately adjust salaries for retirees and other groups.

Without controlling inflation, wage increases are meaningless.

Vice Chairman of the Finance and Budget Committee Vu Luu Mai also said that it is necessary to pay attention to two issues in implementing salary reform.

One is to control inflation in the context of increasing wages because every time wages are adjusted, including those of retirees, there are negative impacts on inflation and rising prices. Ms. Mai cited that in just 4 months of 2023, 31% of households were affected by rising prices.

"If salary increases are not accompanied by measures to control inflation, the meaning of salary increases will not be guaranteed," said Ms. Mai.

Another issue to note, according to Ms. Mai, is how to increase salaries? "In the context of a limited budget, increasing salaries is an effort, but we want the salary increase to be substantial, not equal," Ms. Mai said, adding that according to Resolution 27, when salaries are increased, there will be no other allowances.

Ms. Mai suggested that the Government pay close attention so that when other allowances are no longer available, the income of those who are receiving allowances will not be affected. At the same time, she emphasized that along with increasing salaries, it is necessary to be more drastic in streamlining the payroll to make the apparatus more effective.

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