HCM City prepares to try out merit-based salary for Government workers (Photo: baogiaothong.vn)
HCM City (VNA) - Ho Chi Minh City's Department of Finance plans to submit a proposal to the People’s Council toincrease salaries for Government workers in line with the NationalAssembly's Resolution No 54 for “piloting a special mechanism and policy for thedevelopment of HCM City.”
The resolution allows the city People’sCouncil to decide the salaries for public workers based on their capability,which it can increase to up to 1.8 times their current salary.
According to statistics from the centralgovernment and HCM City, in 2017 the general worker productivity in the citywas 2.7 times the national average, while for State staff it was 1.5 times.Thus, the latter’s income was not commensurate to their productivity.
The income increase is very importantbecause government workers in HCM City are believed to have a lot ofresponsibility but get paid a low income, lower than people working in theprivate sector, meaning the Government finds it hard to retain talent.
The current salary system is mostly basedon certificates and seniority, and does not reward professionalism orefficiency.
According to the department’s calculation,more than 140,000 staff are likely to get hikes and the city will need to paymore than 2.3 trillion VND (100 million USD) extra in 2018 with a maximumincrease of 0.6 times the current salary.
The level will be increased to 1.2 times in2019 and 1.8 times in 2020 based on the city’s finances.
This is one of 21 projects the cityPeople’s Committee will deploy to concretise the contents of the resolution.-VNA
The basic salary for civil servants and public employees will increase to 1.39 million VND (about 61 USD) from the current 1.3 million VND as from July 1, 2018.
Deputy Prime Minister Vuong Dinh Hue emphasized that salary reform is an urgent demand at a conference in Hanoi on December 13 to discuss experience of the world and Vietnam in renovating salary policies.
The average income of civil servants from Ho Chi Minh City is expected to increase this year but will not exceed 1.8 times their main salaries, according to Nguyen Thanh Phong, Chairman of the HCM City People’s Committee.
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HCM City prepares to try out merit-based salary for Government workers (Photo: baogiaothong.vn) 
