VietNamNet Bridge – In a single year, more than 60 public officials and servants working for ward-level agencies of southern Vung Tau City have quit their jobs, mostly because they say they aren’t making enough to survive.

Many public officials see the new higher wages as still not enough for them to live on. What they are looking forward to is more breakthroughs in wage policies. — VNA Photo

Their salary has been by up to 40 per cent since the beginning of this year as the local authorities decided to scrap the allowance awarded to ward-level officials who graduated from college or university.

Pham Trong Khoa, chairman of Ward No. 3’s People’s Committee of Vung Tau City, told Thanh Nien (Young People) newspaper that the monthly wage of an official is currently just over VND2.2 million ($96), which is too low and fails to reflect the workload and pressure they have to bear.

Two accountants of the Rach Dua Ward’s People’s Committee quit their job for the same reason. All ward officials have not received their June salaries due to suspended accounting work.

Nguyen The Luc, chairman of Rach Dua Ward’s People’s Committee, said that the only judiciary official of the ward quit. A land survey official had to take over the judiciary tasks.

To address the problem, the People’s Committee of Vung Tau City has proposed the People’s Committee of Ba Ria-Vung Tau Province increase officials’ salaries. The People’s Committee of Vung Tau City has studied options to mobilise local funds to support them.

Basic wage increases

Meanwhile, public officials nationwide claimed that even the new higher monthly minimum wage taking effect this month is not enough for them to afford domestic expenses.

A decree approved by the Government allows the minimum wage to increase from VND1.3 million (US$57) to VND1.39 million ($61) per month starting July 1.

The new basic salary will be applied to those working in agencies, organisations and non-production units of the Party and the State, as well as in State-funded political-social organisations and associations, and the armed forces.

Nguyen Thi Thanh Nhan, a secondary school teacher in Hanoi, has had her monthly wage increased by VND200,000 ($8.7) starting this month.

“An increase of VND200,000 is not enough, especially when food, oil and gas prices have also surged following the wage increase,” she said.

With a salary of VND4 million ($174) per month, Nhan struggles to manage her finances to raise her two children without support from her husband.

Many other public officials also think that the new higher wages are still not enough for them to live on. What they are looking forward to is more breakthroughs in wage policies.

Pham Nguyen Cuong, former deputy head of Gender Equality under Ministry of Labour, Invalids and Social Affairs, said that the previous wage increases were followed by price surges. The wage increase did not help improve officials’ lives.

The wage increase does not go hand in hand with domestic market prices, she said, adding that price-stabilisation sales of basic products should be maintained.

Le Dang Doanh, former director of Central Institute for Economic Management, said that the basic wage increase shows State attention to the labour force and is necessary because the public sector wage level remains low.

“The state budget will not be able to afford salaries if the number of public officials nationwide is kept the same. We need to cut down on the number of public workers by 30 to 40 per cent so as to ensure higher wages,” he said.

Pham Minh Huan, former deputy minister of Labour, Invalids and Social Affairs said that the minimum wage increase this time is based on the current State budget limit.

To make changes to public official wage policy, we need to streamline personnel and increase State budget collection, he said.

The basic wage increase serves as the foundation of the wage reform policy to take effect in 2021. The policy will go hand in hand with public administration, personnel streamlining and public agency reform, he said.

Source: VNS