It is a temporary solution when base salary increase is delayed to 2021

Proposing to loosen criteria of VND16,000 billion credit package to pay workers salary

Assoc.Prof.Dr. DinhTrongThinh, Senior Lecturer of the Academy of Finance.

Recently, the Government has proposed to the National Assembly not to increase the base salary in 2021 to reserve resources for pandemic prevention and control, especially in the context of economic difficulties that lead to unsecured state budget revenues. What do you think about this proposal?

All wage reforms in other countries around the world are emphasized as being under normal conditions. When there are events, or "shocks" in society, the country must give priority to dealing with those events.

Regarding the proposal not to increase the base salary in 2021, I think this is just an urgent measure. I don't think the government wants this either.

Since the beginning of this year, when the Covid-19 pandemic started, it had a strong impact on the economy. Our country has been successful in implementing many measures to prevent the pandemic. But it is clear that this year our country's economy is growing slowly. In addition, the Government has had to spend a lot of money related to medical supplies as well as measures to support the community of people and businesses. Recently, it is notable that the impact of natural disasters is quite large, meaning the state budget has faced difficulties. Obviously, in the context of a revenue deficit and expenditureincreasing, the proposal of not raising the base salary of the Government will certainly be responded by the majority of people.

Although the economy has slow growth (growth in nine months is still 2.12%, the whole year is estimated at 2-3%), in fact, prices have not increased much (except one or two items). Besides, social welfare policies are still being implemented well by the Government. Therefore, the employees also need to sympathize and share with the Government.

I believe Vietnam will overcome the pandemic and recover faster than other countries because we also suffer less. Currently, we should give priority to revive the production and business sector. Once the economy has stabilized, when we have resources, we will accelerate the wage reform roadmap. The roadmap for salary increase and salary reform can be preserved, not eliminated.

In your opinion, what solutions should theGovernment have to ensure social security, while ensuring the revenue-spending structure for the state budget?

It is clear that in the long term, the economy is still growing, inflation will rise and it will "erode" income of workers. In fact, the Government must also consider that in addition to calling for sharing in the immediate context, in the long term, it is still necessary to ensure the lives of civil servants, especially retired ones.

First of all, how to stabilize the macro-economy, because this is an opportunity for businesses to grow and develop, thereby creating resources for the state budget. Besides, we must do well in curbing inflation. The government must by all means keep prices stable for essential goods.

In particular, the Government should also make public the salary reform roadmap for people so that they can have certain calculations for living.

If wewant to effectively reform the wage policy, a number of key issues must be addressed. Salary must be the main living income for workers and their families. Paying at the right investment level for human resource development, creating a driving force to improve labor productivity and working efficiency of employees, making an important contribution to the implementation of social progress and equity, ensuring social-political stability; promote and improve the quality of sustainable socio-economic growth and development.

Second, the salary policy reform must ensure the overall, systematic, synchronous, inherited and promote its advantages, effectively overcome limitations and shortcomings of the current salary policy; complying with the labor distribution principle and the objective law of the market economy, taking the increase of labor productivity as the basis for salary increase; meet international integration requirements; have a roadmap suitable to socio-economic development conditions and resources of the country.

Is this the time for the State, ministries and branches to "shock" again, seriously implement the downsizing of payroll, reform the administrative apparatus so that it is compact, efficient,and an economical regular state budget, sir?

Talking about the base salary is the reform of salary policy and the streamlining of the apparatus of the state agencies. Currently, the expenditure has been reduced to about 62%, but the state apparatus is still too cumbersome, costly, and ineffective in its operation and support for the people.

The current state budget situation is really difficult due to the impact of the Covid-19 pandemic as well as having to devote resources to overcoming the consequences of storms and floods, devoting resources to public investment, the reduction of recurrent expenditure (the first of which is the base wage) by downsizing the payroll is essential. It is time for ministries and agencies to seriously and drastically implement this task. Instead, it is the building of an efficient public apparatus. It contributes to changing the image of civil servants in the eyes of the people, helping them to have more confidence in the government.

In the public sector, the State should pay the salaries of cadres, civil servants, public employees and the armed forces according to their job positions, titles and leadership positions in accordance with State resources ensuring reasonable correlation with wages in the labor market.

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Along with the salary policy reform, the arrangement of the organizational apparatus of the political system, streamlining, effective and efficient operation and renewing the organization and management system, improving the quality and the performance of public non-business units is equally important to drastic and immediate action.

Thank you very much!