Conclusion of the 7th Conference of the Party Central Committee (11th term) on some issues on reforming wage policy, social insurance, preferential allowances for employees

(Baonghean) -On May 27, 2013, on behalf of the Party Central Committee, General Secretary Nguyen Phu Trong signed Conclusion No. 63-KL/TU of the 7th Conference of the Central Committee (11th tenure) on "Some issues on reforming salary policies, social insurance, preferential allowances for meritorious people and reform orientations until 2020". Nghe An Newspaper respectfully introduces to readers.

The Central Executive Committee basically agrees with the Report of the Government Party Committee on the implementation of Conclusion No. 23-KL/TU, dated May 19, 2012 of the 5th Central Conference (11th tenure) on "Some issues on wages, social insurance, preferential allowances for meritorious people and reform orientations until 2020"; at the same time, emphasizing the following contents:

1. Continue to thoroughly grasp and persistently implement the viewpoints, principles, goals and orientations on reforming wage policies, social insurance and preferential allowances for meritorious people as stated in the Resolution of the 7th Central Conference (VIII term) and the Conclusions of the 8th Central Conference (IX term), the 6th Central Conference (X term) and the 5th Central Conference (XI term). On that basis, unify awareness within the Party and society and have high political determination in promulgating and implementing policies, especially in innovating the operating mechanism, financial mechanism and wages of the public service sector in accordance with the market economy.

2. The Government Party Committee urgently prepares to submit this issue to the Central Committee in 3 projects:

Social insurance policy reform project.

Project to reform preferential policies for people with revolutionary contributions.

Project on reforming salary policy for cadres, civil servants, public employees, armed forces and workers in enterprises.

When researching and developing projects, it is necessary to pay attention to the relationship and correlation of salaries, allowances, and subsidies of the subjects in the projects and must follow a reasonable roadmap, when there are sufficient conditions to ensure implementation.

3. About salary policy

Pursuant to Conclusion No. 23-KL/TU of the 5th Central Conference (11th term), continue to research and complete the Project on salary policy reform until 2020 to submit to the Central Committee with the following orientations:

a) Continue to promote administrative reform, reduce focal points and streamline staff in administrative and public service sectors.

- From now until 2016, basically maintain the stability of the Government's organizational structure and the organization of specialized agencies under the People's Committees at the provincial and district levels. Evaluate and consider the organization of general departments and bureaus under the central ministries and branches to streamline the apparatus. Implement the policy that it is not necessary for the central government to have a corresponding organization at the local level. Complete the organization of the provincial and district government apparatus in the direction of regulating the framework of specialized agencies to assist the People's Committees. At the same time, based on specific conditions and criteria, localities can establish a number of other agencies after receiving the approval of competent authorities.

- From now until 2016, basically no more staff will be added (except in the case of establishing new organizations or new tasks). Organize a review and assessment of the quality of the staff, civil servants and public employees to streamline the staff, remove from the staff those with weak capacity, character, health, efficiency and quality of work that do not meet requirements; resolutely restructure the staff, civil servants, replace those who do not meet the needs with those with quality and capacity. Implement the principle that the number of newly recruited civil servants to the public service must not exceed 50% of the number of civil servants who have left the staff, the remaining 50% of the staff will be used to supplement the areas that need to increase.

b) On innovation of operating mechanisms, financial mechanisms and salaries linked to the performance of public service units

- Strengthen propaganda to raise awareness within the Party and the entire political system about the significance and role of innovation in operating mechanisms, financial mechanisms and salaries for the public service sector. This must be identified as a breakthrough and requires high political determination in promulgating mechanisms, policies and organizing implementation.

- Clearly define the types of services performed by public service units; the types of services performed by non-public units; the types of services performed jointly by public and non-public units. Have policies to encourage the development of quantity and improve the quality of public services; create an equal environment without discrimination between public and non-public service units in providing services to the people.

- Determine the price framework and fees for public service, gradually calculate full salaries and regular expenses according to the roadmap, in accordance with people's income. Build public service prices at 3 levels: (1) Price level calculating full salaries; (2) Price level calculating full salaries and management costs; (3) Price level calculating full salaries, management costs and depreciation of fixed assets. On that basis, classify public service units to implement according to 3 appropriate price levels. Beneficiaries must pay according to service prices and fees. The State implements a policy of direct support for meritorious people, the poor, ethnic minorities and some disadvantaged groups to access and enjoy basic essential public service services, creating consensus in society.

- For public service units that provide qualified public service, first of all economic service units, implement the operating mechanism according to the enterprise model and gradually equitize according to regulations. Implement the public-private partnership model in providing public services in the direction of the State investing in building infrastructure and leasing it back to enterprises at a price calculated enough for maintenance and repair.

- Restructure and innovate the method of investment and allocation of the State budget in the direction of: The State budget ensures regular operating expenses for public service units assigned by the State to provide public service in areas with difficult socio-economic conditions, ethnic minority areas, mountainous, border and island areas. Gradually shift from assigning budget estimates to public service providers as at present to implementing the method of "ordering" and "purchasing" services.

- Implement financial mechanism innovation for the group of public service units providing public service services with high socialization potential, self-guaranteeing all operating costs (universities, hospitals and some vocational training facilities) in the direction of: Granting autonomy and self-responsibility in terms of organization, implementation of tasks, human resources, finance, and assets when providing services associated with social needs; having the right to decide on service prices based on a price framework that fully accounts for reasonable costs (according to the roadmap). The State issues a standard salary table based on the salary level fully calculated according to the minimum needs applicable to this group of service units. Based on the performance results and the standard salary table, the unit decides on specific salaries to be paid to civil servants and employees in accordance with the unit's service revenue source.

- Regulate and implement a roadmap for innovation of mechanisms for public service units; research to implement stable allocation of State support funding for a number of years for public service units.

c) Solutions to create resources to implement salary reform

- Promote production and business; resolve economic difficulties and problems, create conditions for business development; cover all revenue sources, and prevent loss of state budget revenue.

- Restructuring budget expenditures along with readjusting policies and regimes according to the viewpoint of prioritizing salary reform expenditures and human resources expenditures as development investment expenditures, specifically:

+ Continue to require localities to allocate 50% of the increased local budget revenue (increased estimated revenue next year compared to the previous year and increased actual revenue compared to the estimate) for salary reform.

+ Annually, set aside a certain proportion of the increased central budget revenue (increase in the estimated revenue next year compared to the previous year and increase in the actual revenue compared to the estimate) to implement salary reform before allocating it to other tasks.

+ Continue restructuring state budget expenditures:

Arrange enough to pay debts due, especially foreign loans (both principal and interest).

Development investment expenditure is arranged according to the principle: borrowing to cover the budget deficit from domestic capital sources and ODA loans for development investment according to commitments with donors; land use fees, part of the revenue from resource use, lottery fees; focusing on investment in projects that are not able to recover capital: On that basis, keep the ratio of development investment expenditure to total state budget expenditure at a reasonable level.

Practice thrift and combat waste in the use of the state budget for basic construction investment; maximize savings on regular expenses other than salaries; gradually reduce some allowances and compensation for project work, seminars, meetings, etc., towards making salary the main income of cadres, civil servants, and public employees.

- Review and evaluate all social security policies and regimes. On that basis, integrate policies, eliminate overlapping and ineffective policies and regimes; only issue new policies and regimes when resources for implementation have been arranged and balanced.

d) From now until the Central Government approves the Project:

- For those receiving salaries from the budget, the "basic salary" is regulated to replace the "general minimum salary" and gradually adjusted based on the state budget capacity, consumer price index and economic growth rate. Do not add preferential allowances, responsibilities, or specific allowances according to industry and profession.

- For the state-owned enterprise sector, continue to improve wage policies according to market principles, with State management; gradually adjust regional minimum wages in accordance with production and business situations and minimum needs of workers, ensuring the autonomy of enterprises in determining and deciding wages linked to labor productivity, production and business efficiency; strengthen wage negotiations and agreements to ensure harmony of interests between workers and enterprises.

4. About social insurance policy

Research and develop a project to reform social insurance policies according to the directions in Resolution No. 15-NQ/T.Ư, dated June 1, 2012 and Conclusion No. 23-KL/TU, dated May 29, 2012 of the 5th Central Conference (11th term), in which comprehensively research issues related to social insurance contributions and benefits, ensuring the rights of social insurance participants; managing social insurance fund investments. Have a roadmap to implement pension adjustments independently from salary adjustments of incumbents.

5. On preferential policies for people with revolutionary contributions

Research and reform preferential policies for people with meritorious services, promptly adjust the standard level to ensure it corresponds to the average spending level of the whole society so that people with meritorious services can have a fairly average standard of living in society. Synchronously implement other preferential regimes stipulated in the Ordinance on preferential treatment for people with meritorious services to the revolution to continuously improve the material and spiritual life of people with meritorious services and their families. Summarize and review the recognition of people with meritorious services.

6. The Politburo is assigned to direct the Government Party Personnel Committee to organize implementation based on this Conclusion; prepare 3 projects to submit to the Central Committee at an appropriate time.

On behalf of the Central Executive Committee
General Secretary

Nguyen Phu Trong