Civil servants will be paid according to their abilities from 2021
Civil servants will have two salary scales, one for job title and position and one for purely professional work.
At a recent seminar on salary policy reform, Deputy Prime Minister Vuong Dinh Hue, Head of the Steering Committee for Salary Reform, said that from 2021, the whole country will begin to implement salary policy reform after the overall project is approved.The Government will retain 70% of the increased local budget revenue and 50% of the excess revenue of the central budget to supplement the source for salary reform.
"Salary reform is coming""We must approach international commitments and overcome current policy shortcomings when we have not kept up with the market, adjust the salaries of working people independently from pensions and incentives for meritorious people, affecting the sustainability of social insurance...", Deputy Prime Minister Vuong Dinh Hue said.
One of the new points in salary reform thinking is to overcome the inadequacies in salary payment according to qualifications.Accordingly, civil servants will have two salary tables, one for job titles and positions, and one for officials doing purely professional work. “Civil servants and workers in the public sector with higher qualifications will have higher salaries, and the salaries of superiors will be higher than those of subordinates, avoiding the current situation,” said the Deputy Prime Minister.
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The wage policy reform will be implemented from 2021 after the master plan is approved. |
The project also sets out the direction for income payment of cadres and civil servants according to international practice, with the salary ratio not exceeding 70% of income and allowances not exceeding 30%. At the same time, the Head of the agency or unit has the right to spend 10% of the Bonus Fund (in salary) to pay additional to employees who have completed their tasks excellently and have a salary fund to recruit talents.
The salary reform project will also eliminate the method of calculating salaries based on coefficients and instead stipulate absolute numbers in the salary scale and table; determine the minimum wage as the lowest floor, which is legalized and no one pays lower. In addition, it will also stipulate the minimum hourly wage; eliminate State intervention in the salary scale and table of enterprises, and move towards linking salaries in the public and private sectors.
To successfully implement salary reform, the Deputy Prime Minister requested ministries and branches to complete the construction of job positions and professional titles, and effectively implement Resolutions No. 18 and 19 of the 6th Central Conference, Session XII, on streamlining the apparatus and innovating the operations of public service units.
The project is designed according to a multi-level policy, aiming at universal coverage, complying with the principles of contribution, enjoyment and risk sharing.. Accordingly,Employees who have participated in the insurance for 10 years or more will start receiving pension benefits. Employees who leave the social insurance system before the 10-year mark will only receive the existing account number.
This reform of social insurance policy also raises the issue of adjusting the retirement age, the time to adjust the retirement age from January 1, 2021. Specifically, normal workers, under normal working conditions, will increase by 3 months each year until men reach 62 years old and women reach 60 years old.
“If we do not discuss raising the retirement age, it will be difficult to ensure the Fund. This decision will have a long-term impact for decades, but we must act quickly in a short time. The lesson is that Italy adjusted the retirement age 4 times in 10 years, causing chaos in the labor market for the next 20 years,” Deputy Prime Minister Vuong Dinh Hue said.