The Ministry of Home Affairs is consulting relevant ministries and agencies over a plan to raise the monthly base salary from the current VND1.3 million to VND1.39 million (US$61.2) for public officials and employees as well as armed forces.

The base salary of VND1.3 million per month which has been applied since July 1 last year is close to earnings of people at the poverty line in urban areas in the 2016-2020 period, and equivalent to 41.43% of the average minimum wage last year, meeting only 35.53% of the minimum living standards. 

The real salary for public servants is determined by multiplying the base salary with a coefficient depending on the seniority of such people.

In addition to the base salary hike, the National Assembly had issued Resolution 49/2017/QH14 to adjust pensions, social insurance benefits and monthly allowances as well. The resolution will come into force from July 1 this year.

Ministries and State agencies will have to balance their budgets when the new base wage is applied. Meanwhile, centrally-governed cities and provinces will use 10% of regular expenditures to cover the pay rise and downsize their apparatuses.

The draft decree is being passed around for comment until March 3.

Meanwhile, Prime Minister Nguyen Xuan Phuc has signed Resolution 01/NQ-CP on socio-economic development plan and the State budget estimates for this year, which includes provisions requiring State agencies to reduce the number of officials and civil servants by 1.7% and the State payroll by at least 2.5% over 2015. State employees who fail to fulfill their obligations should be dismissed in accordance with prevailing regulations.

The resolution is aimed at reforming and downsizing the State apparatus and restructuring the State payroll.

Ministries and State agencies will have to closely control the number of civil servants and have plans to streamline the workforce.

SGT