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VND60 trillion budgeted to raise salaries for public employees

The Vietnamese government plans to allocate VND60 trillion to increase salaries for public employees and expenditures for social security purposes.
Minister of Home Affairs Pham Thi Thanh Tra

The monthly base salary is expected to increase from VND1.49 to VND1.8 million.

The expected time for the base salary increase is July 1, 2023 with an additional budget of VND44 trillion in 2023. 

In the past three years, the base salary for public employees was adjusted once, in July 2019, up by 7.19 percent. Meanwhile, minimum regional wages for businesses were adjusted three times in January 2019 (+ 5.23 percent), January 2020 (+ 5.5 percent) and July 2022 (+ 6 percent), totaling 17.7 percent up. The consumer price index (CPI) from July 2019 to September 2022 increased by 10 percent.

As the base salary for public employees has not been adjusted over the past three years, many public employees have quit and left to go to the private sector. So, the base salary must be adjusted.

Competent agencies said the rise of base salary from VND1.49 million to VND1.8 million would have a 0.54 percent effect on the CPI in 2023.

The General Statistical Office (GSO) predicted that the CPI in 2023 would increase by 4-4.5 percent compared with 2022 (at that time there had been no plan on salary adjustments). As such, when the base salary increases, slated for July 1, 2023, the CPI in 2023 will increase by 4.5-5 percent.

The government is going to submit a plan on raising pensions and social insurance allowances, and giving additional allowances to people who retired before 1995 and got low pensions. The total fund to implement the policies is VND3.55 trillion.

The government also proposes increasing professional allowances for workers in preventive medicine and grassroots medicine from 40 to 100 percent, slated for January 1, 2023, with a budget of VND5.4 trillion.

Minister of Home Affairs Pham Thi Thanh Tra told VietNamNet that the projected increase from VND1.49 million to VND1.8 million is the "most reasonable, most optimal and safest" solution.

Thu Hang


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