The proposed pay rise will see staff wages increase from the current rate of VND1.49 million (US$63) to VND1.8 million ($76) starting from July 1, 2023.

The last hike was made in July 2019, raising the basic wage from VND1.39 million ($58.5) per month to VND1.49 million, an increase of 7.19 per cent. 

Under current regulations, the salary of State employees is calculated by multiplying base salary with the salary coefficient which ranges from 2.34 to 10 and is based on their working duration, position and other criteria.

New graduates entering the State sector would be subject to salary level 1 with a coefficient of 2.34. It means the salary is VND1.49 million multiplied by 2.34, equivalent to a monthly wage of VND3.48 million.

The highest coefficient of 10 is applied to senior professionals who do not hold leadership titles in the fields of politics, administration, economics, science, technology, education, health, culture and arts.

Since 2020, due to adverse impacts of internal and external factors caused by the COVID-19 pandemic, the basic wage level has not been adjusted.

According to the internal affairs ministry, compared with the regional salary of employees in the private sector, the monthly wage of VND1.49 million only equals to 37.89 per cent of the average regional minimum wage in 2022 which was over VND3.9 million.

That led to life difficulties for cadres, civil servants, public employees and the armed forces.

The ministry is compiling a draft Government resolution on adjusting the basic wage, citing that the basic wage increase by 20.8 per cent from July 01, 2023, is necessary to improve the lives of beneficiaries.

According to the draft resolution, nine groups of public sector workers will be the beneficiaries.

They are cadres and civil servants from central to commune levels; officials in public non-business units; people working under the labour contract regime in agencies and units of the Party, the State, and socio-political organisations.

Public workers who enjoy basic wage hikes also include people working in the quota of staff in associations supported by the State budget for operating expenses; officers, professional soldiers, non-commissioned officers, soldiers and employees of the Vietnam People's Army and public security force.

Part-time employees in cipher organisations and at commune, village and residential groups are also beneficiaries.

Government and ministerial agencies, other central agencies and localities at the central level have been asked to mobilise 10 per cent of regular spending (excluding spending on wages and salary allowances) on the wage hike plan. 

Source: Vietnam News