The municipal authorities made the plea at a meeting with Deputy Prime Minister Vuong Dinh Hue, who is also the head of the Central Steering Committee for Reform of Wage, Social Insurance and Incentives for People with Meritorious Service, last weekend.
According to the city People’s Committee, the existing wage structure applied for public employees is not enough to motivate them.
For example, the basic monthly salary in the public sector is only VND1.3 million (US$58) compared to VND3 million in the industrial sector.
Though the minimum wage is usually adjusted every year to cover the increase in prices, it is barely enough to cover basic needs.
However, the adjustment is weighed heavily in favour of employees’ education levels rather than their performance or position.
City authorities said this basic salary structure prevents cities and provinces with rapid economic growth from increasing the incomes of their employees.
Apart from calling for the base salary hike, the city also said there should be a law on minimum wage to ensure salaries are sufficient.
The deputy PM said evaluating the reform of wage, social insurance and incentives for people with meritorious service is vital in HCM City due to its significant role in the country’s economy.
Appreciating the suggestions made by the city administration about the salaries, he said the steering committee would work towards closing the salary gap between government and industrial workers to ensure the former are paid adequately.
“Together with Resolutions 18 and 19 adopted at the sixth plenary session of the 12th Communist Party of Vietnam Central Committee, which reiterate the country’s determination to reduce the number of public servants and restructure public offices and agencies, we will successfully implement the reform of wage and social insurance to motivate employees, enterprises and the whole country.”
Last month, the Government Office had announced that the basic salary for civil servants and public employees would increase to VND1.39 million from next July.