The postponement in basis wage increase is a temporary solution

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Assoc.Prof.Dr. DinhTrongThinh, Senior Lecturer of the Academy of Finance.

Recently, the Government has proposed to the National Assembly not to adjust the basis salary in 2021 to save resources for pandemic prevention and control, especially in the context of the economy facing many difficulties, leading to unsecured state budget revenue. What do you think about this proposal?

Wage reforms in other countries around the world are emphasized as being under normal conditions. When there are events, or "shocks" in society, they must give priority to handling those events.

Regarding the proposal not to adjust the basiswage increase in 2021, I think this is just a temporary solution. I don't think the government wants this either.

Since the beginning of the year, when the Covid-19 outbreak began, it had a strong impact on the economy. Our country has been successful in implementing many measures to prevent the pandemic. Obviously, this year, our country's economy is growing slowly. In addition, the Government has had to spend a lot of money related to medical supplies as well as measures to support communities and businesses.

Notably, recently, the large impact of natural disasters are causing difficulties for the state budget. In the context of revenue deficit and increasing expenditure, the proposal of not raising the basis salary of the Government will certainly be accepted by the majority of people.

However, although the economy has witnessed slow growth (the growth in nine months is still 2.12%, the whole year is estimated at 2-3%), prices have not increased much (except 1-2 items). Besides, social welfare policies are still being implemented by the Government. Therefore, the employees also need to sympathize and share the burden with the Government.

I believe Vietnam will overcome the pandemic, recover faster than other countries because we also suffered less. Currently, we should give priority to revive the production and business sector. Once the economy has stabilized, there are resources that will accelerate the wage reform roadmap. The roadmap for salary increases and salary reform can be delayed, not eliminated.

What solutions should the Government have in the future to ensure both social security and the revenue-spending structure for the state budget?

- It is clear that in the long term, the economy is still growing, inflation will still be there and it will "erode" the income of workers. In the short term, the Government can call for sharing, but in the long term, it is still necessary to ensure the lives of officers, especially pensioners.

First of all, it needs to stabilize the macro-economy because this is an opportunity for businesses to grow and develop, thereby creating resources for the state budget.

Besides, we must do well in controlling inflation. The government must use all measures to keep prices for essential goods stable.

In particular, the Government should also make public the salary reform roadmap for people, so that they can make certain calculations for living.

In order to effectively reform the wage policy, a number of key issues must first be addressed. Salary must be the main income ensuring livelihoods for workers and their families; paying at the right level is investment in human resource development, creating a driving force to improve labor productivity and the efficiency of employees, making an important contribution to the implementation of social progress and equity, ensuring social-political stability; promoting and improving the quality of sustainable socio-economic growth and development.

Second, the wage policy reform must ensure the overall, systematic andsynchronous, inherited and promote its advantages, effectively overcoming the limitations and shortcomings of the current salary policy; complying with the labor distribution principle and the objective law of the market economy, taking the increase of labor productivity as the basis for salary increase; meeting international integration requirements; having a roadmap suitable with socio-economic development conditions and resources of the country.

So, is this the time for the State, ministries and branches to seriously implement the streamlining of payrolls, reforming the administrative apparatus to make it more effective, saving recurrent expenditures for the state budget?

- Regarding the basis wage, the first is the reform of wage policy and finally the streamlining of the apparatus of the state agencies. Currently, although the recurrent expenditure has been reduced to about 62%, the state apparatus is still too cumbersome, costly, and ineffective in its operation and support for the people. In the past, when talking about public officers, people would think of a leisurely job.

With the state budget situation facing difficulties due to the impact of the Covid-19 pandemic as well as having to devote resources to overcoming the consequences of natural disasters and public investment, the reduction of recurrent expenditure (the first of which is the basis wage) by downsizing the payroll is necessary.

It is time for ministries and agencies to seriously and drastically implement this task. At the same time, it needs to build an efficient public apparatus. Since then, it contributes to changing the image of civil servants in the eyes of the people, helping people gain more confidence in the government.

In the future, in the public sector, the State should pay the salaries of cadres, civil servants, public employees and the armed forces in line with their job positions, titles and leadership positions in accordance with State resources, ensuring a reasonable correlation with wages in the labor market.

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Along with the wage policy reform, the renovation and arrangement of the organizational apparatus of the political system, streamlining, effective and efficient operation and renewing the organization and management system, improving the quality and the performance of public non-business units is equally important that needs drastic action immediately.

Thank you, Sir!