Salary reform heats up Party Central Committee’s 7th plenary meeting

The 12th-tenure of the Central Committee of the Communist Party of Vietnam (CPV) discussed salary reform for officials, public servants, the armed forces and workers in the afternoon of May 9, the third day of its seventh plenary meeting. 

Finance Minister Dinh Tien Dung (Source: VNA)

Finance Minister Dinh Tien Dung (Source: VNA)

The working session took place under the chair of Nguyen Thi Kim Ngan, Politburo member and Chairwoman of the National Assembly. 

Minister of Home Affairs Le Vinh Tan delivered a report clarifying objectives, tasks and breakthrough solutions to implement the salary policy reform project. 

He emphasised the need to employ drastic solutions regarding finance and budget, personnel reduction, the restructuring of the contingent of officials and public servants, and the streamlining of the apparatus in the political system in order to ensure operational efficiency. 

Tan also stressed information work to raise public awareness of salary reform, as well as the role of people, fatherland front and socio- political organisations in implementing the reform. 

Members of the Party Central Committee (PCC) reached high consensus on the issuance of a resolution on salary reform. 

Be Xuan Truong, Deputy Defence Minister, applauded the feasibility of the project, saying it matches the country’s development trend as well as salary policies of developed countries in the world. 

He said among the solutions set forth in the project, resourcesmobilisation and personnel reduction are the most important, adding that a ten-percent reduction in personnel each year could facilitate salary reform. 

Pham Hoai Nam, a delegate from the Naval Service, lauded thorough and scientific preparations for the project. 

He said income and expenditure of officials in different regions should be taken into account during the implementation of the project, explaining that socio-economic development in localities and regions is not the same. 

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

Delegates suggested implementing four solutions, focusing on considering the salary in the public area is the basis to decide the basic salary for other areas; and giving clear regulations on macro and micro management on salary policy to promote the role, responsibilities and management ability of localities and organsations in the work. 

They also gave solutions to effective implementation of the project, while stressing the payment basing on job title, working position, and performance. 

They stressed the need to devise mechanisms, regulations and directions to well perform the project. 

Attendees agreed that it is necessary to consistently build the payroll, and arrange staff in line with the job titles, give attention to building job title standards as a basis for building the payroll as well as the building of job titles and position projects, and replacing the examination for changing salary level with the appointment based on job requirements. 

They said an effective public administration must be based on a contingent of civil servants and officials with good profession and virtue, and those with high-motivated spirit.

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

Finance Minister DinhTien Dung lauded breakthrough measures in the salary reform policy scheme, ensuring transparency, fairness and empowerment for units and localities in terms of salary payment based on labour results. 

He said the ministry will press on with the plan in accordance with the Party Central Committee (12th tenure)’s Resolutions No.18 and No.19, towards the goal of restructuring public debts to ensure safe and sustainable national finance in line with the Politburo’s Resolution No.07. 

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

Spending for salary will increase by nearly VND35-40 trillion (US$1.55 – 1.78 billion) by 2021 and 2022. 

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

With the adjustment of the lowest salary to VND4.140 million per month from 2021, the State budget will need roughly VND115 trillion by 2021 and 95 trillion VND by 2022, he said. 

President of the Vietnam General Confederation of Labour Bui Van Cuong said workers hold high expectation on the Party’s important decisions on salary and social insurance. 

In order to attract young and capable workforce, he lauded the plan to offer higher salary to qualified workers and prevent the situation that those with many working years are entitled to high salaries. 

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

In the near future, trade unions will sign collective labour agreements at the national and sectoral levels, and with employers.

Vietnamplus

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