Salary reform heats up Party Central Committee’s 7th plenary meeting
Updated : Thursday, May 10, 2018 10:16 AM (GMT+0700)

The12th-tenure of the Central Committee of the Communist Party ofVietnam (CPV) discussed salary reform for officials, public servants, the armedforces and workers in the afternoon of May 9, the third day of its seventhplenary meeting. 

Finance Minister Dinh Tien Dung - Source: VNA

The working session tookplace under the chair of Nguyen Thi Kim Ngan, Politburo member and Chairwomanof the National Assembly. 

Minister of Home Affairs LeVinh Tan delivered a report clarifying objectives, tasks and breakthroughsolutions to implement the salary policy reform project. 

He emphasised the need toemploy drastic solutions regarding finance and budget, personnel reduction, therestructuring of the contingent of officials and public servants, and thestreamlining of the apparatus in the political system in order to ensure operationalefficiency. 

Tan also stressedinformation work to raise public awareness of salary reform, as well as therole of people, fatherland front and socio- political organisations inimplementing the reform. 

Members of the Party CentralCommittee (PCC) reached high consensus on the issuance of a resolution onsalary reform. 

Be Xuan Truong, DeputyDefence Minister, applauded the feasibility of the project, saying it matchesthe country’s development trend as well as salary policies of developed countriesin the world. 

He said among the solutionsset forth in the project, resourcesmobilisation and personnel reduction are themost important, adding that a ten-percent reduction in personnel each yearcould facilitate salary reform. 

Pham Hoai Nam, a delegatefrom the Naval Service, lauded thorough and scientific preparations for theproject. 

He said income andexpenditure of officials in different regions should be taken into accountduring the implementation of the project, explaining that socio-economicdevelopment in localities and regions is not the same. 

Ngo Dong Hai, deputy head ofthe PCC’s Economic Commission, highlighted breakthroughs of the project, notingthat the problem lies in how to develop a modern salary system suitable to thecountry’s development periods, and to make salary the main source of income ofofficials, public servants, the armed forces, and workers, and a momentum forthem to fulfill their assigned tasks. 

Delegates suggestedimplementing four solutions, focusing on considering the salary in the publicarea is the basis to decide the basic salary for other areas; and giving clearregulations on macro and micro management on salary policy to promote the role,responsibilities and management ability of localities and organsations in thework. 

They also gave solutions toeffective implementation of the project, while stressing the payment basing onjob title, working position, and performance. 

They stressed the need todevise mechanisms, regulations and directions to well perform theproject. 

Attendees agreed that it isnecessary to consistently build the payroll, and arrange staff in line with thejob titles, give attention to building job title standards as a basis forbuilding the payroll as well as the building of job titles and positionprojects, and replacing the examination for changing salary level with theappointment based on job requirements. 

They said an effectivepublic administration must be based on a contingent of civil servants andofficials with good profession and virtue, and those with high-motivatedspirit.

It is necessary to fullyimplement the remuneration regime so that civil servants will keep their mindon their work, and be assured of pursuing their career, they said.

Finance Minister Dinh TienDung lauded breakthrough measures in the salary reform policy scheme, ensuringtransparency, fairness and empowerment for units and localities in terms ofsalary payment based on labour results. 

He said the ministry willpress on with the plan in accordance with the Party Central Committee (12thtenure)’s Resolutions No.18 and No.19, towards the goal of restructuring publicdebts to ensure safe and sustainable national finance in line with thePolitburo’s Resolution No.07. 

Accordingly, development expenditurewill account for nearly 26 percent of the total State spending while regularspending and deficit will stay below 3.5 percent of the gross domestic productby 2020, and lower over subsequent years. 

Spending for salary willincrease by nearly 35-40 trillion VND (1.55 – 1.78 billion USD) by 2021 and2022. 

By 2021-2022, the Statebudget deficit will make up 4-4.1 percent of GDP. If official developmentassistance (ODA) disbursement for 2016-2020 exceeds the plan by 2.4-2.5 percentof GDP, public debts will be around 64.5 percent of GDP, close to public debtlimit allowed by the National Assembly. 

With the adjustment of thelowest salary to 4.140 million VND per month from 2021, the State budget willneed roughly 115 trillion VND by 2021 and 95 trillion VND by 2022, hesaid. 

President of the VietnamGeneral Confederation of Labour Bui Van Cuong said workers hold highexpectation on the Party’s important decisions on salary and socialinsurance. 

In order to attract youngand capable workforce, he lauded the plan to offer higher salary to qualifiedworkers and prevent the situation that those with many working years areentitled to high salaries. 

He said the State’s policyof not interfering into enterprises’ salary policy is new and progressive,adding that there should be specific regulations on the responsibilities oftrade unions and organisations representing workers for negotiating salarieswith workers in line with law. 

In the near future, tradeunions will sign collective labour agreements at the national and sectorallevels, and with employers.


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