The Government proposed to increase the basic salary to 1.6 million VND/month in 2020.

Minister of Finance Dinh Tien Dung

Reporting to the National Assembly on the afternoon of October 21 on the implementation of the state budget in 2019, the state budget estimate and central budget allocation in 2020, Minister of Finance Dinh Tien Dung said that the estimated expenditure for salary reform and staff streamlining is 61,500 billion VND.

"This is to ensure resources to adjust the basic salary from 1.490 million VND/month to 1.6 million VND/month from July 1, 2020, an increase of 7.3%. In addition, pensions and allowances for people with meritorious services will also increase accordingly," said the Minister.

Reporting on this matter, Chairman of the National Assembly's Finance and Budget Committee Nguyen Duc Hai said that the majority of opinions in the Finance and Budget Committee agreed with the proposal to increase the basic salary from 1.49 million to 1.6 million VND/month.

Chairman of the National Assembly's Finance and Budget Committee Nguyen Duc Hai speaks at the meeting. Photo: Minh Dat

Besides, some opinions suggest that it is necessary to consider increasing salaries because it can make state budget expenditure more consumption-oriented than development investment expenditure.

For allowances and income of a salary nature, they need to be reviewed according to the provisions of law, ensuring compliance with the characteristics of each profession and field of operation.

There are opinions at the auditing agency suggesting to increase the public service allowance because from 2012 until now it has remained at 25%. There are also opinions suggesting to pay more attention to increasing the salary for pensioners before 1993 because their income is quite low compared to the general level of society.

To effectively implement the increase in basic salary in 2020, the auditing agency recommends that sectors and levels need to increase savings and combat waste.

The Government needs to take appropriate steps, identify job positions, the complexity of occupations, etc. to prepare for salary reform from 2021 according to Resolution No. 27 of the Central Committee.

Wage reform is facing difficulties.

In a report sent to the National Assembly on the implementation of the National Assembly's resolutions on continuing to carry out thematic supervision activities and questioning activities to serve the 8th session opening tomorrow, the Ministry of Home Affairs pointed out a series of difficulties in implementing salary reform.

Specifically, the Ministry of Home Affairs issued Official Dispatch No. 139 dated May 3 providing guidance on the framework for building a salary and allowance system by profession and Official Dispatch No. 341 dated August 13 urging ministries and agencies to promptly complete and submit reports on building salary tables by job position, title, leadership position and allowances by profession.

However, up to now, the Ministry of Home Affairs has not received official reports from the ministries and agencies assigned to the task.

In addition, the Ministry of Home Affairs also said that the implementation of tasks according to Resolution No. 18 and 19 of the 6th Central Committee on streamlining the apparatus and making it more effective has not yet achieved results.

In addition, the construction and completion of the list of job positions, titles and leadership positions, job descriptions, determination of the structure of civil servants, public employees and the structure of subjects in the armed forces, and determination of the competency framework for each job position, title and leadership position are still in the process of implementation.

Especially the situation and capacity of the state budget are extremely difficult.