The salary should have the real value

	Major issues to be discussed at 7th meeting of Party Central Committee
	Overview of Party Central Committee opening 7th plenary session
	Wage reform: Focus on streamlining workforce

Salary will be paid based on the market mechanism, productivity and quality of work. Photo: Bui Nu.

There will be 5 new payrolls

According to Deputy Minister of Labor, Invalids and Social Affairs, Mr. Doan Mau Diep, Vietnam's salary policy underwent 4 reforms in 1960, 1985, 1993 and 2003. However, the salary policy in the public works is complicated and the system of salary scales and payrolls is not suitable for jobs, positions and titles. Salaries are not the main income of cadres and civil servants, which does not create motivation to improve working efficiency. There is no bonus mechanism to encourage initiatives, creativity, innovation in working style, raise the public morality and quality and efficiency of work.

Remarkably, in the business sector, the salary of employees has not really linked to the labor productivity and business efficiency, which has not promoted the role and effect of the mechanism of negotiation. The coverage of minimum salary is narrow.

"Therefore, the goal of reforming this salary policy is to make salaries become the primary source of income for the workers and their families. At the same time, narrow the salary gap between the public sector and the market to attract high-quality personnel in the public sector, ", Mr. Diep emphasized.

According to Mr. Diep, in the project of salary reform this time, for the administrative area, the State will abolish the system of 7 payrolls with the current coefficient, replacing by 5 new payrolls, designed by job position and titles. The position payroll is applicable to cadres, civil servants and public employees holding leading posts in the political system from the central to grassroots levels. The payroll of professional salaries according to civil servant ranks and professional titles shall apply generally to public employees and officials who do not hold the leading titles. The armed forces will have 3 payrolls, including payrolls for officers, non-commissioned officers, payrolls for professional military personnel, professional qualifications and payroll for defense workers and police.

The public sector salary is made up of 3 parts, including the basic salary components, which accounts for about 70% of the total salary fund; Expenditures include 30% of total salary and bonuses are up to 10% of basic salary. Heads of agencies, organizations and units have the right to use regular expenditures to recruit talents.

Reform of salary linked to streamlining of the apparatus

Regarding the new salary reform scheme, Mr. Bui Sy Loi, the Deputy Chairman of the National Assembly's Committee for Social Affairs, said that the salary paid to the employees would include the right hardware, accounting for at least 70% of the total income of the employees. There are 30 types of allowances (such as allowances for seniority, occupation, etc.).

In the corporate sector, the minimum salary is modified in the direction that "the minimum salary must ensure minimum living standards for workers and their families." In the corporate sector, salary must be linked to labor productivity, which means that workers who want high salary must increase productivity.

In the administrative area, there will be two payrolls. A payroll will be calculated based on the position, and job title, based on the market mechanism, product yield, and quality of work. A person is appointed to the position where his/her salary is the right position of his/her work. However, if he/ she is re-elected for another term, her/his salary will be increased by 10%.

Mr. Loi further analyzed that the nature of the salary increase for civil servants was to streamline their staff so that the right people could be properly aligned. In order to reform salary, the first step is to reform, renovate and improve the capacity and effectiveness of public services. Public services must be converted into outputs and controlled by the State. If people can do it, payroll will be reduced to relieve the burden on the State budget. Secondly, it is necessary to improve the capacity and efficiency of the State management agencies on the basis of building jobs and arranging the right people for the right job.

Proposal to raise personal income tax from wages and salaries VCN - At the draft report on proposal for the Law amending and supplementing some articles of ...

If we do this, there will be a transparent salary policy that will meet the living needs of salary earners, improve capacity, and serve the people, especially contributing to anti-corruption.