The head of the Ministry of Home Affairs' Department of Salaries and Wages, Doan Cuong, spoke with Thoi bao Kinh te Viet Nam (Vietnam Economic Times) about salary reform for State-owned enterprises.
One of the reasons for the ultra-low salaries of State employees is the limited State budget. How can this be improved in the next seven years?
The ministry's salary reform project for the 2013-20 period aims to increase the minimum wage of officials and public servants, improve their living conditions and halt the flow of people from State employment to the private sector due to higher pay and better rewards.
But I think more sources of funding should be mobilised apart from the State budget to really solve this problem. The salary reform project will focus on creating funds for additional payment for labourers.
What measures will the plan implement to find and obtain the sources you mentioned?
In my opinion, we need to create chances for State-owned enterprises to increase their own revenue in order to pay employees better. This will ease the burden on the State.
The ministry is discussing whether to continue cutting administrative expenses of State-owned enterprises by 10 per cent and allocating 50 per cent of the increase in tax collection to salary reform.
If these measures are taken, we might be able to improve the lives of State employees while not depending too much on the State budget.
How will these measures be taken?
The salary reform board is urgently working on a project that will outline specific recommendations for individuals in different localities and mechanisms for different enterprises.
The State will divide its salary fund at a fixed rate to State-owned enterprises and they will have to independently adjust their wages. Administrative agencies and armed forces are still eligible for State funding, but other public enterprises will be asked to create their own fund. The State fund will be gradually reduced and this money will be used only for salary reform of administrative groups. — VNS