Update news wage reform
The Ministry of Home Affairs is building a national strategy on attracting talents for important posts by 2030 with a vision towards 2045, which is expected to be submitted to the government for issuance in 2023.
Vietnam has carried out four separate salary reform campaigns, but salaries for cadres and civil servants remain low, according to National Assembly Deputy Vu Thi Luu Mai.
Minister of Home Affairs Pham Thi Thanh Tra earlier this year answered National Assembly Deputies’ queries about the high number of resignations of public servants.
The National Assembly (NA) has decided to raise the base salary for cadres, civil servants, and public employees to 1.8 million VND (72.5 USD) per month from July 1, 2023.
Based on the responses of 3,000 job seekers and 400 businesses in June, the report "Labor market in 2022 – facts and direction" by Vietnamworks pointed out that 40% of workers do not have a stable job.
Deputy Chair of the National Assembly’s Committee for Culture and Education Nguyen Thi Mai Hoa said many talented officials at state agencies cannot grasp opportunities, leading to a waste of talent.
National Assembly deputy Tran Huu Hau pointed out problems that lead to a "waste of responsibility’" during a recent National Assembly discussion on policies and laws on thrift and fighting waste.
The latest hike in minimum wage occurred on July 1, 2019, with an increase from VND1.39 million to VND1.49 million.
The Vietnamese government plans to allocate VND60 trillion to increase salaries for public employees and expenditures for social security purposes.
The basic wage for public staff would increase by 20.8% to VND1.8 million ($73.3) from July 1, 2023, along with a higher allowance for medical staff at grassroots levels.
Reforming wage policy for civil servants and public employees is one of the solutions to stop the brain drain from the public to the private sector.
Former Minister of Labor, War Invalids and Social Affairs Tran Dinh Hoan once said that Vietnamese ministers would be paid US$1,000 a month by 2000 (VND20 million at that time). However, the current pay (in 2022) is only over VND10 million.
Carrying out wage reform is one of the urgent solutions National Assembly Deputy Ta Thi Yen has proposed to retain staff amid the mass departure of state officers for the private sector.
A report shows that 6,000 civil servants and public employees in HCM City resigned from their posts from January 1, 2020 to June 30, 2022.
The country is fastening its belt and gathering strength to fight the pandemic, waiting for opportunities for economic recovery. Because of this, it would be unreasonable to increase minimum wages at this moment.