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Restructuring of State apparatus key to wage reform: Deputy PM

The restructuring and streamlining of administrative apparatus and preparing the budget for the reformed salary project are key to wage reform.
Restructuring of State apparatus key to wage reform: Deputy PM ảnh 1Deputy Prime Minister Vuong Dinh Hue speaks at a meeting on November 22 which reviews the implementation of a Party resolution on salary policy reform. (Photo: VNA)

Hanoi (VNA) - Therestructuring and streamlining of administrative apparatus and preparing thebudget for the reformed salary project are key to wage reform.

Deputy Prime Minister Vuong Dinh Hue,head of the central steering committee for reform of wage and social insurancepolicies, made the statement at a meeting held on November 22 to review theimplementation of a Party resolution on salary policy reform.

Under the wage plans, which take effectin 2021, the new public sector wage system will be linked to employees’positions and grades. Employees of State-owned enterprises will enjoy payparity with those from non-State firms.

According to Hue, the renovation ofadministrative apparatus and payroll streamlining will reduce its reliance onState budget and improve the effectiveness of public institutions.

The Government has decided to spend 40 percentof State budget surplus and 70 percent of budget surplus of localities for2018-2020 period for salary reform project.

Hue said preparations for the implementationof the project was underway.

From 2021, retirement ages will rise bythree months per year for men, and four months for women.

Other contents relating to wage issuesincluding minimum wage and how to calculate salaries will also be revised inaccordance with the amended labour code.

Prime Minister Nguyen Xuan Phuc hasissued a directive on the implementation of special wage mechanism applicableto certain units in the State apparatus.

The PM allowed these units to carry outthe mechanism until the end of 2020 and then exercise payment in accordancewith the new wage policy from 2021, ensuring transparency of publicadministrative services and facilitate such activities as specialisedinspections, he said

Hue said agencies and sectors wouldmake proposals on wage policy for their civil servants, officials and armedforces while the Ministry of Home Affairs would be in charge of submittingreports on the implementation.

Vietnam has gone through several wagereforms in 1960, 1985, 1993 and some further adjustments in 2003.

In October 2017, the Party CentralCommittee issued Resolution No 18 and 19 on continued reform to improve theeffectiveness of public institutions. The Party Central Committee set the goalsof reducing 10 percent of the permanent posts by 2021 compared with 2015’sfigures./.
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