Party Central Committee issues resolution on salary policy reform
Party General Secretary Nguyen Phu Trong on May 21 signed the issuance of a Resolution of the 7th meeting of the 12th Party Central Committee on the reform of salary policy for civil servants, public employees, the armed forces and workers of enterprises (Resolution 27-NQ/TW).
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The resolution sets the overall goal of building a system of national salary policies that are scientific and transparent, and suitable with the country’s situation, thus meeting the development requirement of the socialism-oriented market economy and the nation’s proactive international integration; helping build harmonious, stable and progressive labour relations; creating a driving force for liberalizing production force and improving labour productivity and human resources quality; contributing to building a pure, streamlined, effective political system; preventing corruption and wastefulness; and ensuring the living conditions for wage earners and their families, realising social progress and justice.
The specific targets set by the resolution include the adoption of a new salary regime for cadres, civil servants, public employees and the armed forces as from 2021.
Also from 2021, the regional minimum wage will be adjusted regularly based on recommendations of the National Salary Council. Enterprises will be allow to decide salary policy basing on negotiation and agreement between employers and employees and representatives of labourers’ collectives. The State will not directly intervene in enterprises’ salary policy.
The management of labour and salary in State-owned enterprises (SOEs) will be carried out by allocating total salary costs for enterprises based on their production and business tasks to 2025, toward allocating production and business tasks to enterprises by 2030.
Enterprises, including SOEs, will be allowed to decide their wage policies (including pay scale, payroll and work quota), with the wage no less than the minimum salary announced by the State, and based on collective labour agreements in line with each enterprise’s production model and capability. The wage policies should be made public at the workplace.
The state will determine monthly and hourly minimum wages, the average wage in the market for each occupation, and support the supply of labour market information.
Businesses and their employees will hold negotiation to reach agreement on how to calculate salary, sign labour contracts and pay salary based on labour productivity and output.
Enterprises and organizations representing employees shall negotiate and agree on wage, bonus and other remunerations in collective labour agreements or in enterprises' regulations.
For SOEs, the State will provide general principles for determining salaries and bonuses in association with labour productivity, and production and business efficiency, aiming to ensure the balance of wage level in the market.
The resolution also requires the publicity of annual salaries and incomes of those who represent the State capital in enterprises and the general directors of State-owned enterprises.
To realise the above-mentioned targets, the resolution sets out many solutions, stressing the need to urgently build and perfect the system of job positions, considering this as the prerequisite and an essential solution to implement salary reform.
