Civil servant salary will increase to 1.49 million VND/month

Minister Dinh Tien Dung said that the plan to allocate the 2019 central budget estimate is reported based on the estimated total state budget revenue in 2019 of VND 1,411,300 billion.

The estimated state budget deficit is 222,000 billion VND. The estimated total state budget expenditure balance is 1,633,300 billion VND.

With a 7% increase, the basic salary will increase by 100,000 VND/month, from 1.39 million VND to 1.49 million VND.

Minister Dinh Tien Dung informed that it is expected that about 16,200 billion VND will be spent on salary reform based on adjusting the basic salary from 1.39 million VND/month to 1.49 million VND/month starting from July 1, 2019. Pensions and preferential allowances for meritorious people will increase at the same level and time as the basic salary increases.

Examining the implementation of the 2018 state budget and the 2019 budget estimate, the National Assembly's Finance and Budget Committee commented that the budget expenditure structure is expected to shift in a positive direction: reducing the proportion of regular expenditure and increasing the proportion of investment expenditure in the total state budget expenditure.

In 2019, the proportion of regular expenditure is expected to be about 63.8% of total expenditure (lower than the 2018 estimate of 64.1%), the proportion of investment expenditure is 26.3% (higher than the 2018 estimate of 26.2%). Although the change in this ratio is still very modest, it has contributed to ensuring the target of investment expenditure - regular expenditure structure according to the National Assembly's resolution.

In particular, in the context of difficult state budget collection, higher salary allocation tasks (increasing basic salary by VND 100,000/month from July 1, 2019) and ensuring more and more social security policies, the shift in state budget expenditure structure as planned is an effort in management and operation of the Government, ministries, branches and local authorities, the audit report clearly stated.

However, some opinions at the audit agency said that arranging a higher increase in basic salary compared to recent years will create pressure and make it more difficult to reduce regular expenditures according to resolutions of the Central Committee and the National Assembly.