Lever for the public system
2 years ago, Quynh Anh - a graduate with honors - decided to quit her job at a private company to take the exam to become a tax official. Quynh Anh said that this was her dream since she was in school, but the civil servant salary is what makes her most concerned.
“My salary is more than 8 million VND/month - Quynh Anh said - that amount of money is very difficult to live in Hanoi. I am renting a room, and I also lose more than 3 million VND/month, so I always have to struggle, sometimes I have to ask for sponsorship from my family. Now hearing the news of the basic salary increase, I also feel a little better”.
Quynh Anh's story reflects a common reality. The base salary, currently at 2.34 million VND/month, is the basis for calculating a series of incomes and other benefits in the public sector. However, this level is still low compared to the general level of the labor market.
According to the Ministry of Home Affairs, the base salary is currently only about 56.12% of the regional average minimum wage of the business sector. This means that the income of the public sector is significantly "disparate" from the private sector.
In the opposite direction, Mr. Tran Van Minh, an engineer working at a public non-business unit in Ho Chi Minh City, said that many of his colleagues have switched to private enterprises in recent years.
For the same position, out there they pay one and a half times, even twice as much. If only looking at income, it is very difficult to keep people" - he said. For Mr. Minh, increasing the base salary is a positive sign, although not enough to create real competition.
Not only affecting income, the adjustment of the base salary also has a greater significance in terms of working motivation. In the public service system, where work pressure is increasing but income is still limited, salary becomes an important factor affecting spirit and labor productivity.
The draft of the Ministry of Home Affairs also emphasizes that increasing the base salary will contribute to improving the quality, efficiency of work and public service ethics. This shows that salary is not only an economic issue, but also a management tool. When income is improved, workers have more motivation to stick with, contribute and limit negative behaviors arising from financial pressure.
However, the story of wage increases cannot be separated from the macroeconomic context. According to experts, the adjustment of the base salary needs to be based on many factors, the most important of which is the consumer price index and economic growth rate. If prices increase but wages do not increase correspondingly, the actual income of workers will decrease. Conversely, if the economy grows, workers also need to enjoy a part of that achievement.
Talking to Lao Dong Newspaper, Assoc. Prof. Dr. Nguyen Thi Lan Huong - former Director of the Institute of Labor and Social Sciences (Ministry of Labor, Invalids and Social Affairs, now the Ministry of Home Affairs) - said that public sector salaries have specific characteristics different from the minimum wage on the market.
The market minimum wage usually applies to simple labor, while public sector salaries are mainly for workers with professional and technical qualifications. Therefore, the determination of the base salary level needs to reflect the characteristics of the public sector human resources.
For example, if university-educated workers on the market today have an average salary of about 10 million VND/month, then public sector salaries also need to be designed at a corresponding level to avoid brain drain," Ms. Huong said.
In principle, the minimum base salary increase should be equal to the GDP growth rate plus the consumer price index (CPI) to preserve the value of salaries" - Ms. Lan Huong proposed.
In fact, this base salary increase not only affects cadres, civil servants, and public employees, but also spreads to many other groups. Social allowances, pensions, social insurance allowances... will also be adjusted accordingly. This means that millions of people, especially vulnerable groups, have the opportunity to improve their income.
Challenge
Regarding salary increases, the budget problem is always a major challenge. When the base salary increases, total budget expenditure for salaries and related expenses also increases accordingly. This requires careful balance, especially in the context of limited resources.
An economic expert said that if only salary increases are not accompanied by reform of the apparatus, streamlining staff and improving work efficiency, the impact of policies will be limited.
Salary increases are necessary, but must go hand in hand with reforms to ensure long-term efficiency" - this person commented.
Looking broader, the proposal to increase the base salary to 2.53 million VND/month from 2026 can be considered a next step in the salary reform roadmap. This is not the only solution, but it is an important foundation to move towards a fair, transparent and market-oriented salary system.
Returning to Quynh Anh's story, when asked about expectations, she did not mention big numbers.
I just hope the salary is enough to live on, to feel secure in working" - Quynh Anh said. That simple wish is also what the salary policy aims for: Not only to ensure income, but also to create stability and trust for those who are operating the public apparatus.
Many groups of subjects are proposed to increase salaries
In the proposal, the Ministry of Home Affairs stated: "The above base salary level is the basis for calculating salaries in salary scales, allowances and implementing other regimes according to the provisions of law, and is also used to calculate operating fees and living expenses according to regulations as well as calculate deductions and benefits according to the base salary level.
The draft stipulates 9 groups of beneficiaries of salaries and allowances applying the new base salary level, including:
Cadres and civil servants from the Central to commune level are specified in Article 1 of the Law on Cadres and Civil Servants.
Public employees in public non-business units are specified in Article 1 of the Law on Public Employees.
People doing jobs under the labor contract regime specified in Decree No. 111/2022/ND-CP of the Government on contracts for some types of jobs in administrative agencies and public non-business units are subject to the case of being applied or having agreements in labor contracts applying salary ranking according to Decree No. 204/2004/ND-CP of the Government on salary regimes for cadres, civil servants, public employees and armed forces.
People working within the staffing quota at associations are supported by the State budget for operating expenses according to the provisions of Decree No. 126/2024/ND-CP of the Government stipulating the organization, operation and management of associations.
Officers, professional soldiers, workers, defense officials and contract workers of the army.
Officers, sergeants receiving salaries, police workers and contract workers belonging to the police force.
People working in cryptography organizations.
Non-commissioned officers and soldiers of the army; non-commissioned officers and soldiers of the police force.
Non-specialized personnel in villages and residential groups.
In addition to non-commissioned officers and soldiers of the army; non-commissioned officers and soldiers of the police; non-specialized personnel in villages and residential groups, the remaining 7 groups are subject to the bonus regime.
