From 2025, adjust the annual salary increase of 7% for public employees and armed forces, correct?
From 2025, Adjust the Salary of Official Public Employees and Armed Forces by 7% Annually?
According to the report of the Government of Vietnam presented by the Prime Minister at the opening of the 6th National Assembly Session on the tasks set for 2024 and the period ahead, the State has set the following tasks:
From 2025 onwards, continue adjusting the salary to increase by an average of 7% per year for official public employees and armed forces until the lowest salary is equal to or higher than the minimum salary of region 1 in the enterprise sector.
Simultaneously, continue adjusting the regional minimum wage and the salary policy for the enterprise sector according to regulations.
From 2025, adjust the salary of official public employees and armed forces by 7% annually?
What is the Goal of Salary Reform by 2030 According to Resolution 27?
In Section 2.2, Subsection 2, Section 2 of Resolution 27/NQ-TW of 2018, which stipulates specific goals in salary reform as follows:
From 2021 to 2025 with a vision to 2030
For the Public Sector
- From 2021, apply new unified salary policies for officials and public employees, and armed forces across the entire political system.
- In 2021, the lowest salary of officials and public employees will be equal to the average lowest salary across the regions in the enterprise sector.
- Periodically increase the salary levels suitable to the consumer price index, economic growth rate, and state budget capacity.
- By 2025, the lowest salary of officials and public employees will be higher than the average lowest salary across the regions in the enterprise sector.
- By 2030, the lowest salary of officials and public employees will be equal to or higher than the highest minimum salary in the enterprise sector.
For the Enterprise Sector
- From 2021, the State periodically adjusts the regional minimum wage based on the recommendations of the National Wage Council. Enterprises implement salary policies based on negotiation and agreement between employers and employees and their collective representatives; the State does not directly interfere in the enterprise's salary policy.
- Manage labor and wages in state-owned enterprises by the method of wage cost contracting linked to the enterprise's production and business tasks by 2025, and move towards contracting the enterprise's production and business tasks by 2030.
What is the Perspective on Implementing Salary Reform?
According to Resolution 27/NQ-TW of 2018, the perspective on implementing salary reform is as follows:
- The salary policy is a significantly important policy in the system of socio-economic policies. Salary should genuinely be the primary income source ensuring the livelihood of employees and their families; correct salary payment is an investment in human resource development, motivating to improve labor productivity and work efficiency, significantly contributing to achieving social progress and equity, ensuring political and social stability; promoting and enhancing the quality of economic growth and sustainable development.
- Salary policy reform must ensure comprehensiveness, systematization, synchronization, inheriting and promoting the advantages, effectively overcoming the limitations and inadequacies of the current salary policy; adhere to the principle of labor-based distribution and the objective laws of the market economy, using labor productivity increase as the basis for wage increases; meet the requirements of international integration; have a roadmap suitable to the economic-social development conditions and the country's resources.
- In the public sector, the State pays salaries to officials and public employees and armed forces based on job positions, titles, and leadership positions, appropriate to the State's resources and revenue from public service activities, ensuring reasonable correlations with labor market wages; implement adequate remuneration and reward policies based on labor productivity, creating motivation to enhance work quality, efficiency, public service ethics, professional ethics, contributing to clean and enhance the effectiveness and efficiency of the political system's operations.
- In the enterprise sector, wages are the price of labor, formed based on the agreement between employees and employers according to the market mechanism managed by the State. The State stipulates the minimum wage as the lowest floor level to protect the disadvantaged workers and is also a basis for wage agreements and regulating the labor market. Wage distribution is based on labor results and production and business efficiency, ensuring harmonious, stable, and progressive labor relations in enterprises.
- Salary policy reform is an objective requirement and a critical task requiring high political determination in building a socialist rule of law state and perfecting a socialist-oriented market economy institution; promoting administrative reform; innovating, restructuring the organization of the political system into a streamlined, effective operational structure, reducing staffing; innovating the organizational system and management, improving the quality and efficiency of public service providers' activities.
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