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Salary increase but no salary reform

Báo Thanh niênBáo Thanh niên25/06/2024


Are there many problems?

Minister Pham Thi Thanh Tra stated that during the implementation and development of the six specific contents of salary reform in the public sector according to Resolution No. 27 of 2018 of the Central Party Committee, especially the development of new salary scales (position salary scale, professional and technical salary scale for cadres, civil servants, and public employees, and three salary scales for the armed forces) along with allowance regimes, the Government has identified many obstacles and inadequacies. Specifically, these include the development of new salary scales; the rearrangement of allowance regimes; the development and improvement of job positions; and the implementation of the Resolutions of the 6th Central Committee Conference of the 12th Party Congress and the reform and innovation projects in various sectors and fields.

Furthermore, Ms. Tra stated that the Government had reported to the Politburo , and the Politburo issued Conclusion No. 83 on June 21, agreeing on the principle for the Government to report to the National Assembly (NA) for implementation. At this session, the Government proposed to the NA two reforms to the wage system in the enterprise sector: adjusting the regional minimum wage according to the provisions of the Labor Code (a 6% increase effective from July 1); and establishing a wage mechanism for state-owned enterprises (effective from January 1, 2025).

Tăng lương nhưng chưa cải cách tiền lương- Ảnh 1.

Salary reform in the public sector faces many obstacles. (In the photo : Officials from the Ho Chi Minh City Department of Justice handling administrative procedures for citizens.)

The government also proposed implementing 4 out of 6 provisions of Resolution 27 on salary reform. The remaining two provisions, including the development of a new salary scale based on job positions and the arrangement of 9 new allowance schemes, have not been implemented due to numerous shortcomings and require further research and refinement.

Accordingly, the Government proposes that, until the conditions are met to abolish the basic salary and salary coefficient, the Government should implement a salary increase, adjusting the basic salary from the current 1.8 million VND to 2.34 million VND/month (a 30% increase) from July 1st.

For agencies and units currently applying special financial and income mechanisms at the central level, the Government will continue to direct a review of the entire legal framework to submit to competent authorities for consideration and decision on amending or abolishing the special financial and income mechanisms of these agencies and units to ensure their suitability. At the same time, the difference between the June 2024 salary and additional income of officials, civil servants, and public employees and the salary from July 1st after the amendment or abolition of the special financial and income mechanisms will be retained.

According to Ms. Tra, until these mechanisms are amended or abolished, the monthly salary and additional income will be calculated based on the base salary of 2.34 million VND/month under the special mechanism from July 1st, ensuring that it does not exceed the salary and additional income received in June 2024 (excluding the portion of salary and additional income resulting from adjustments to the salary coefficient of grades and ranks when upgrading grades or ranks).

In addition, the Government also proposed adjusting pensions, social insurance benefits, preferential allowances for meritorious individuals, and social allowances from July 1st. Specifically, pensions and social insurance benefits will be increased by 15%. Furthermore, for those receiving pensions before 1995, after the adjustment, if their benefit is less than 3.2 million VND/month, it will be increased by 0.3 million VND/month; if their benefit is between 3.2 million VND/month and less than 3.5 million VND/month, it will be adjusted to 3.5 million VND/month.

Preferential allowances for meritorious individuals are increased from 2.055 million VND to 2.789 million VND per month (a 35.7% increase); maintaining the current ratio of preferential allowances for meritorious individuals to the standard allowance. Social assistance allowances are increased from 360,000 VND to 500,000 VND per month (a 38.9% increase).

It's a bit vague, not clear yet.

In the report reviewing this matter, the Chair of the National Assembly's Social Affairs Committee, Nguyen Thuy Anh, stated that the reviewing body agreed with the view that salary reform and related policies should be implemented according to a suitable roadmap, step by step, cautiously, and surely, ensuring feasibility, effectiveness, and suitability to the state budget's ability to pay. However, the reviewing body emphasized that the Government should continue to conduct comprehensive research and propose to the competent authorities the policy of perfecting salary scales, allowance regimes, salary increase regimes, bonus regimes, implementation resources, and salary and income management mechanisms to ensure that salary policy reform truly serves as a driving force for socio-economic development.

During the group discussion, National Assembly Deputy Vu Tuan Anh (from Phu Tho province) argued that the government's proposals for salary reform under Resolution 27 have not been achieved. According to him, the National Assembly passed a resolution at the end of last year, which stipulated that salary reform under Resolution 27 should be implemented from July 1st. However, the government has now reported that it has only implemented 4 out of 6 provisions of Resolution 27.

"We're doing this half-heartedly and unclearly. Resolution 27 requires abolishing the base salary and building a new salary scale based on job positions. Now we have to continue implementing the base salary, still using the old salary coefficient," the representative from Phu Tho stated.

Representative Nguyen Xuan Thang (Quang Ninh delegation), Director of the Ho Chi Minh National Political Academy and Chairman of the Central Theoretical Council, also stated that one of the two major requirements of Resolution 27 – abolishing the basic salary and building a new salary scale based on job positions – has not yet been implemented. According to Mr. Thang, the government's proposal this time claims to implement salary reform according to Resolution 27, but in reality, it's only a salary increase. "I suggest that's just a way of saying it, but out of the six contents of Resolution 27, only four have been implemented, leaving two fundamental contents yet to be implemented. We need to talk about reform, and it has to be very fundamental. Currently, it's just raising salaries, nothing more," Mr. Thang observed.

Explaining this issue during a group discussion, Minister of Home Affairs Pham Thi Thanh Tra stated that the biggest difficulty in salary reform under Resolution 27 stems from the most fundamental issue: designing salary scales and restructuring and rearranging the nine groups of allowances. "There are many obstacles," Ms. Tra said. Another difficulty arises from the development of job positions, which, despite being implemented since 2012, still have many shortcomings. According to Ms. Tra, the political system recently rushed to approve the job position scheme, but overall, its quality is still lacking. The Politburo has also not yet issued a list of job positions within the political system, leading to difficulties in developing job positions linked to descriptions and competency frameworks.

Reporting further during the group discussion, Minister Pham Thi Thanh Tra stated that practical experience shows that in 2023, when the basic salary increased by 20.8%, the CPI increase was insignificant and did not exceed the current National Assembly's control threshold of 4-4.5%. Therefore, the Government has developed detailed scenarios and solutions to both boost the economy and curb inflation, ensuring macroeconomic stability. The Government has also assigned the Ministry of Finance to develop proactive scenarios early on, striving to control inflation.

Tăng lương nhưng chưa cải cách tiền lương- Ảnh 2.

Ms. Nguyen Thanh Hai receives congratulatory flowers from National Assembly Chairman Tran Thanh Man.

Ms. Nguyen Thanh Hai was elected as a member of the Standing Committee of the National Assembly .

On the afternoon of June 25th, with 449 out of 450 deputies voting in favor, the National Assembly passed a resolution on the election of Ms. Nguyen Thanh Hai, Secretary of the Thai Nguyen Provincial Party Committee, as a member of the Standing Committee of the National Assembly for the 2021-2026 term.

Ms. Nguyen Thanh Hai (54 years old), originally from Hanoi, holds a high-level political theory qualification and a PhD in physics. She previously served as Deputy Head of the National Assembly Office, Head of the National Assembly's Committee on Culture, Education, Youth, and Children (now the Committee on Culture and Education), and then Head of the People's Petition Department under the National Assembly Standing Committee, before being transferred and assigned to the position of Secretary of the Thai Nguyen Provincial Party Committee in July 2021.

Mr. Dinh Tien Dung resigns from his position as a National Assembly representative.

On the afternoon of June 25th, with 440 out of 445 participating deputies voting in favor, the National Assembly passed a resolution relieving Mr. Dinh Tien Dung, former member of the Politburo and former Secretary of the Hanoi City Party Committee, from his duties as a National Assembly deputy of the 15th term.

Previously, at an extraordinary meeting on June 21, the Central Committee of the Party agreed to relieve Mr. Dinh Tien Dung from his positions as a member of the Politburo and a member of the Central Committee of the 13th Party Congress. On June 19, the Politburo also agreed to relieve Mr. Dinh Tien Dung from his positions in the Executive Committee and Standing Committee of the Hanoi City Party Committee, as well as from his position as Secretary of the Hanoi City Party Committee for the 2020-2025 term and Head of the Hanoi City Delegation to the 15th National Assembly, and reported to the Central Committee of the Party so that Mr. Dinh Tien Dung could relinquish these positions in accordance with Party regulations and State laws.



Source: https://thanhnien.vn/tang-luong-nhung-chua-cai-cach-tien-luong-185240625232444951.htm

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