Government bodies asked to balance budget for salary hike

Governmental bodies have been asked to balance their budget estimates to generate fund for basic salary increase in 2016 according to the Prime Minister’s decision 2100/QD-TTg.

Under the decision, from January 1, 2016, the salary hike will be applied to pensioners, who are receiving less than VND2 million (US$88.9) a month, and a subsidy plan will be implemented for primary school teachers who have begun their work before 1995. The move aims to ensure those people’s pension is equal to basic salary. 

Other pensioners and contributors to the nation continue receiving an 8-percent increase in salary and subsidy as they did in 2015. 

From May 1, 2016, the basic salary for State employees, civil servants and servicemen will be increased from VND1.15 million to VND1.21 million per month. 

The PM asked provinces and centrally-governed cities to implement measures to generate fund for salary reform in 2016 from their incomes and save 10 percent of their non-salary regular expenditure, among others. 

They are also asked to save 10 percent of frequent expenditure right from the planning of budget estimates. 

The PM assigned the Ministry of Finance to judge the demand and fund for salary reform and report supplementary amounts needed from the central budget for localities to adjust salary and allowances in 2016.