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New public salary system to boost transparency

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Nguyen Quang Dung, director general of the Department of Salary Affairs under the Ministry of Home Affairs, speaks to Vietnam News Agency about proposed changes in the future wage system. The proposals will be discussed at the Party Central Committee’s meeting, which opens today in Hanoi. 

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For general workers (such as drivers, guards, cleaners) , their salaries will be based on their negotiations with their employers. 

What are the challenges Vietnam is facing with its current salary system?

Since 1960, Vietnam has carried out four salary reforms (1960; 1985; 1993 and 2003). But until now there remains a lot of issues that need to be addressed. A basic salary of some VNĐ 1.3 million ($57) is set to calculate the salary systems for common wage earners nation wide. For example, a fresh university graduate will have a wage scale of 2.34 which is equal to a little over VNĐ 3 million per month.

The monthly salary of a government official is based on a wage scale that is also the mutiplication of the basic salary depending on many diffenrent factors.

Besides the monthly salary, a wage earner also receives some allowances. In fact, for many people the monthly allowances received is higher than their actual salaries.

All the above mentioned elements have made our current salary system become very complicated.

How will these issues be resolved in the upcoming proposal for reform of our salary system?

According to the proposal on the reform of our current salary system which will be presented to the up coming plenary meeting of the Party Central Committee, salaries shall be paid according to job positions to make them in accordance with the Law on Cadres and Civil Servants. Under this proposal, the salary of a senior Party/Government Official will be paid in accordance to their job position to bring it in line with the Law on Cadres and Civil Servants.

We have intended to design a salary scale for senior Government Officials. For example, we set a VNĐ17 million for monthly salary of a department general director. So whoever is promoted to that position will have his/her monthly salary of VNĐ17 million.

Of course, in the up coming salary reform, people with talent will be given special treatment to encourage them to contribute more to the homeland.

For general workers (such as drivers, guards, cleaners) , their salaries will be based on their negotiations with their employers.

According to the proposal on salary reform, all public employees, civil servants or Government officials will only have their monthly salary and will not receive any extra income. What is your response to this proposal?

In the proposal on the salary raise for all public employees and Government officials, we hope that they and their dependants can enjoy a decent life on their salaries.

In the old system, the many allowances were created to compensate for cadres and civil servants’ low salary. The new salary payment will allow our public financial budget to operate in a more transparent manner.

Of course, the other point in the salary reform is to contribute to our current fight against corruption and to raise the labour productivity of all salary earners.

Source: VietNamNet

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