Deputy Prime Minister Vuong Dinh Hue speaks at a meeting with HCM City’s authorities on wage reform. (Source: Photo courtesy of VGP)
HCM City (VNA) – Ho Chi Minh City wants to increase government workers’ salaries so thatthey match at least the minimum wage in the industrial sector.
The municipal authorities made the plea at a meeting with Deputy Prime MinisterVuong Dinh Hue, who is also the head of the Central Steering Committee forReform of Wage, Social Insurance and Incentives for People with MeritoriousService, last weekend.
According to the city People’s Committee, the existing wage structure appliedfor public employees is not enough to motivate them.
For example, the basic monthly salary in the public sector is only 1.3 million VND(58 USD) compared to 3 million VND in the industrial sector.
Though the minimum wage is usually adjusted every year to cover the increase inprices, it is barely enough to cover basic needs.
However, the adjustment is weighed heavily in favour of employees’ educationlevels rather than their performance or position.
City authorities said this basic salary structure prevents cities and provinceswith rapid economic growth from increasing the incomes of their employees.
Apart from calling for the base salary hike, the city also said there should bea law on minimum wage to ensure salaries are sufficient.
The deputy PM said evaluating the reform of wage, social insurance andincentives for people with meritorious service is vital in HCM City due to itssignificant role in the country’s economy.
Appreciating the suggestions made by the city administration about thesalaries, he said the steering committee would work towards closing the salarygap between government and industrial workers to ensure the former are paidadequately.
“Together with Resolutions 18 and 19 adopted at the sixth plenary session ofthe 12th Communist Party of Vietnam Central Committee, which reiterate thecountry’s determination to reduce the number of public servants and restructurepublic offices and agencies, we will successfully implement the reform of wageand social insurance to motivate employees, enterprises and the whole country.”
Last month, the Government Office had announced that the basic salary for civilservants and public employees would increase to 1.39 million VND from next July.-VNA
The Ministry of Education and Training recently proposed raising teachers’ salaries, but it’s unclear whether this will be approved given the small portion of the State budget spent on education, according to experts.
The basic salary for civil servants and public employees will increase to 1.39 million VND (about 61 USD) from the current 1.3 million VND as from July 1, 2018.
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The strategic product, managed and operated by the Vietnam News Agency Digital Media Centre (VNA Media), is an official channel for popularising the Party and State’s information and documents as well as delivering mainstream and trustworthy news to both domestic and international audiences through various kinds of multimedia formats.
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Deputy Prime Minister Vuong Dinh Hue speaks at a meeting with HCM City’s authorities on wage reform. (Source: Photo courtesy of VGP) 
