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Basic wage for goverment employees to increase from 2016

Released at: 16:29, 11/03/2015

Basic wage for goverment employees to increase from 2016

Adjustment to bring basic wage to levels that cover spending needs.

by Hoai An

Deputy Prime Minister Vu Van Ninh held a meeting recently on tasks for 2015, focusing on wage reform policy.

The report from the meeting states that the current basic wage for socio-political staff, public servants and armed forces personnel in place since the middle of 2013 is VND1.15 million ($54.7) per month, or just 44.2 per cent of the average minimum wage in other sectors of VND2.6 million ($120.9) per month and accounting for 35.6 per cent of minimum spending needs, which have been set at VND3.23 million ($150.2) per month.

From January 1, 2016 the government will adjust the minimum wage to ensure it meets social and economic circumstances, is affordable for businesses, and meets minimum spending needs. The new wage for socio-political staff, public servants and armed forces personnel must compensate for inflation and be consistent with economic growth.

In terms of administrative units, the Deputy PM stressed innovation, autonomy, and self-responsibility. By strengthening the autonomy and accountability of administrative units, higher wages can be generated and the quality of public services in terms of education, training and health will be improved.

He assigned the Ministry of Finance (MoF) to calculate how to balance the budget from 2016 to 2020 and research salary adjustments.

To create the resources needed for wage reform, the Deputy PM directed it to follow plans for increasing wages and review wage regulations and make appropriate modifications. Ministries and departments also need to control recruitment by their SOEs to avoid increasing their payroll unnecessarily.

Wage reform, however, remains limited. “Basic salaries have not met the minimum living requirements, while the reform of administrative units is slow,” the Deputy PM said.

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