Home » Ministry of Finance: Raising wages soon will make it difficult to control inflation

Ministry of Finance: Raising wages soon will make it difficult to control inflation

The National Assembly member proposed to increase the base salary from January 1, 2023, but the Ministry of Finance explained that this makes it difficult to control inflation.

At the ongoing 4th session, the Government proposed to the National Assembly to increase the base salary of civil servants and public employees from 1.49 million VND to 1.8 million VND per month, effective from July 1, 2023.

Discussing at the group on October 22 and the parliament today on the socio-economic situation, many National Assembly deputies proposed to increase the base salary from January 1, 2023, instead of from July 1 next year. Explaining the opinions of the National Assembly deputies at the group about the time to increase the base salary, the Ministry of Finance said that if the salary increase is early in the year, it will make it difficult to control inflation.

At the beginning of the year, close to the New Year and Lunar New Year, the shopping demand of people and businesses increased sharply. If increased at this time, it will put more pressure on price management, because the psychology of increasing wages is accompanied by price increases, making it difficult to control inflation. “In the face of high inflation risk, wage policy reform should be carried out cautiously and in harmony with socio-economic management objectives,” the Finance Ministry said.

Therefore, the Government continues to advise the competent authorities that salary reform has not been implemented in accordance with Resolution 27 of the Central Government in 2023. Instead, it is proposed to increase the base salary from July 1, 2023 for cadres. , civil servants and public employees to 1.8 million VND/month (about 20.8%). This increase is assessed by the Ministry of Finance as basically offsetting the level of price slippage.

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Finance Minister Ho Duc Phuc. Photo: Nguyen Duc
Finance Minister Ho Duc Phuc. Photo: Nguyen Duc

Explaining to the National Assembly this afternoon, Interior Minister Pham Thi Thanh Tra also said that it is difficult to increase wages from January 1, 2023 and the milestone of July 1 is reasonable in terms of proactively anticipating problems such as: inflation, and other objective factors.

Regarding the proposal of the National Assembly deputies to carry out wage reform from 2024, the Ministry of Finance said that in the 2023 budget estimate report submitted to the National Assembly, the Government reported the need and accumulated sources to improve the salary. salary way. However, in the context that the world and the country are under great inflation pressure, the Government has submitted to the National Assembly Standing Committee and the National Assembly to delay wage reform under Resolution 27 after 2023.

In case inflation pressure decreases, there are no major socio-economic changes, the national treasury management agency affirmed, the Government will urgently submit to the competent authorities a roadmap for salary reform.

Continue streamlining staffing, renewing recruitment of civil servants

According to Interior Minister Pham Thi Thanh Tra, from the beginning of 2020 to the middle of 2022, there are 39,550 civil servants who have quit their jobs nationwide. In which, the field of education has 16,400 people, the highest among professions; followed by health care 12,200 people. The majority of people who quit their jobs are under the age of 40, of which more than half have university degrees.

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However, in the past two and a half years, the whole country recruited nearly 144,000 new civil servants and public employees. Particularly, nearly 74,500 newly recruited education officials; health care 38,100 people. Thus, the number of civil servants and public employees who quit their jobs compared to the total payroll is not large, but concentrated in key areas, related to the factor of taking care of people.

Ms. Tra mentioned a series of reasons why civil servants and public employees quit their jobs, such as the labor market developing, connecting, operating synchronously, and interacting smoothly across regions, regions, domestically and internationally. Civil servants and public employees moving from the public sector to the private sector is an objective factor, based on the regulation of the labor market. This trend creates a driving force to promote faster, fairer and fairer competition between the public and private sectors, and motivates the public sector to restructure the contingent of civil servants and public employees.

In addition to the objective reasons mentioned above, there is also a subjective reason that the income of civil servants is lower than that of the private sector despite having the same qualifications. Their pressure is increasing, the working environment in some places has not yet created the motivation to promote their capacity. Governance of the public sector still follows the old way, while private enterprises have many ways to encourage employees and timely recognize their contributions.

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“The mass severance of civil servants and public employees in the past two and a half years is something that should be taken seriously and is a matter of concern. The public sector also needs to improve its institutions, towards progressive and equitable innovation, fair competition,” said the Interior Minister.

Interior Minister Pham Thi Thanh Tra speaks at the National Assembly. Photo: Hoang Phong
Interior Minister Pham Thi Thanh Tra speaks at the National Assembly. Photo: Hoang Phong

Ms. Tra informed that, along with increasing the base salary, preparing the conditions for salary policy reform, the agencies will continue to reform the organizational apparatus to streamline the payroll; renovate recruitment, use, management, training, fostering, planning and arrangement of cadres. All are guaranteed to be open, fair and democratic. The Ministry also soon develops policies to attract and utilize talented people and experts in the fields and fields of state agencies and public non-business units.

The Government and the Ministry of Home Affairs have also determined to build a team of leaders and managers with quality, capacity, prestige and role model, creating trust for cadres, civil servants and public employees. Work environment

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