What is the wage policy and other social policies in Vietnam under Resolution 159?

What is the wage policy and other social policies in Vietnam under Resolution 159?

Based on Article 3 of Resolution 159/2024/QH15 download, specific regulations for implementing wage policy and certain social policies are as follows:

[1] There will be no increase in public sector wages, pensions, social insurance allowances, monthly allowances, and preferential allowances for people with meritorious services in 2025.

[2] Ministries, central agencies, and localities are to continue adopting measures to generate resources for wage policy reform as prescribed. Permission is granted to continue excluding certain revenue streams when calculating the local budget increase allocated for wage reform, as stipulated in Clause 2, Article 3 of National Assembly Resolution No. 34/2021/QH15.

[3] From July 1, 2024, the scope for utilizing central budget accumulations for wage reform can be expanded to adjust pensions, social insurance allowances, monthly allowances, preferential allowances for people with meritorious services, and streamline staffing; permission is given to use the local budget’s wage reform resources to implement social welfare policies issued by the Central Government and streamline staffing.

[4] Localities are allowed to use surplus wage reform resources to invest in regional and national connection projects and key national projects being implemented locally, as per the regulations of the competent authorities, provided that these localities have substantial surplus resources, commit to ensuring wage reform funding, and implement centrally issued social welfare policies throughout the 2030 period without seeking central budget support.

What is the wage policy and other social policies in Vietnam under Resolution 159? (Image from the Internet)

What are tasks assigned to the Government of Vietnam in Resolution 159?

Based on Article 4 of Resolution 159/2024/ND-CP download, specific tasks assigned to the Government of Vietnam are as follows:

[1] Focus on proactively, reasonably, flexibly, and effectively managing fiscal policy; coordinate comprehensively and closely with monetary policy and other policies; promptly respond to complex domestic and international situations, maintain macroeconomic stability, control inflation, promote growth, ensure the major economic equilibria; urgently find solutions to overcome the decline in the indicators of state budget mobilization as a percentage of GDP and revenue mobilization from taxes and fees into the state budget.

[2] Vigorously implement solutions to enhance revenue management and restructure revenue sources to ensure sustainability; expand the tax base; combat revenue loss, transfer pricing, and tax evasion; tackle commercial fraud, especially in digital-based commercial activities; prompt the collection of outstanding taxes, reduce tax debts; continue reforms in tax administrative procedures, accelerate the electronicization of tax management; strictly enforce regulations on auctions in the transfer, leasing of public assets, land leasing in accordance with the law.

[3] Direct specialized agencies to promptly develop amendments to the State Budget Law, linking it to restructuring the revenue-source decentralization mechanism holistically and cautiously, with full impact assessments to ensure the central budget's leading role, to be submitted to the National Assembly for consideration and decision.

[4] Tighten discipline, enhance the responsibility of leaders in financial and budget management and usage; conduct state budget expenditures according to estimates, ensuring strictness, thrift, and efficiency; rigorously save unnecessary expenditures to ensure resources for disaster and disease prevention, supplement development investment capital, and support economic recovery; strive to significantly increase the development investment expenditure ratio; only issue policies that increase budget expenditures when absolutely necessary and when resources are available; allocate and assign estimates on time as prescribed by the State Budget Law; improve investment preparation quality, and overcome limitations in delays in executing public investment projects and slow disbursement of public investment capital; resolutely transfer funds from delayed projects to projects capable of execution and disbursement but lacking funds, minimizing carryover.

[5] Implement effective solutions to improve the quality of proposals, preparation, and approval of projects using ODA capital, and develop specific implementation plans for each stage. Review accountability in budgeting shortcomings, ineffective execution leading to low public investment capital disbursement. Research sanctions for cases returning annual capital plans due to subjective reasons.

[6] Direct relevant ministries and agencies to research and propose solutions for arising irrationalities in policies for certain groups and sectors (public employees in education, healthcare, etc.); propose further adjustments to increase public sector wages, pensions, social insurance allowances, monthly allowances, and preferential allowances for people with meritorious services if the socio-economic conditions in 2025 are more favorable and resources are balanced, reporting to competent authorities for consideration and decision.

[7] Continue directing central ministries, central agencies, and localities to streamline staffing, organize a streamlined, efficient, and effective administrative apparatus; innovate management mechanisms, financial mechanisms, reorganize the system of public service providers, and reduce direct budget support for public service providers.

[8] Stringently enforce savings, combat wastefulness; enhance inspection, audit, and accountability of organizations and individuals in compliance with regulations on savings, combat wastefulness, and ensure the efficient use of the state budget. Focus on implementing the provisions of National Assembly Resolution No. 74/2022/QH15 dated November 15, 2022, on promoting the implementation of policies and laws on savings and combating wastefulness.

[9] Closely control the state budget deficit, local budget deficit, and the local budget's debt levels, and the direct debt repayment obligations of the Government of Vietnam against total state budget revenues. Increase inspection, auditing of borrowing, use of borrowed funds, and debt repayment, particularly regarding new loan agreements, foreign loans, and loans guaranteed by the Government of Vietnam; assess and forecast risks related to borrowing capacity and debt repayment to effectively manage and operate the state budget; actively implement solutions to restructure public debt under the Public Debt Management Law; ensure thrift and efficiency in repurchasing, swapping, and redeeming Government of Vietnam bonds; manage the payment expenses for issuance, repurchasing, swapping, redeeming Government of Vietnam bonds within the interest repayment forecast of the central budget for 2025 as decided by the National Assembly.

Vietnam: Who supervises and audits the implementation of Resolution 159?

Based on Article 5 of Resolution 159/2024/QH15 download, regulations for supervision and audit of the implementation of Resolution 159 are as follows:

- The Standing Committee of the National Assembly, the Finance and Budget Committee, the Ethnic Council and other Committees of the National Assembly, National Assembly delegations, National Assembly deputies, the Vietnam Fatherland Front, and its member organizations, within their respective functions, tasks, and powers, supervise the implementation of this Resolution.

- The State Audit, within its functions, tasks, and powers, conducts audits to ensure the compliance of the implementation of this Resolution in accordance with the law.