Hanoi (VNA) - The Government has issued a decree increasing the base salary for ci💮vil servants, public employees, 𓂃and members of the armed forces, stipulating that it will increase from 1.49 million VND (63.5 USD) to 1.8 million VND per month from July 1, 2023.

In order to reward and encourage public sector workers with a higher salary, the Government will have to further seek solutions to curb inflation and stabilize the macroeconomy. However, not all workers in the public sector are happy with the salary increase, as in some cases allowances are cut at the same time. In addition, workers also worry about increases in the cost of living.

Increasing income, improving life

According to the Ministry of Home Affairs, increasing the base salary is necessary, aimed to support workers after the COVID-19 pandemic, and is in accordance with the country’s socioeconomic situation. This is also a solution to ensure income and retain staff, including cadres, civil servants, and public employees. In the recent times, many public sector staff resigned or changed jobs, likely due to the wage issue. The decision to increase the base salary by more than 20% reveals the Government’s efforts in retaining servant staff. However, raising wages in a difficult economic context may not be as effective as expected. Although the increase of more than 20% is high according to experts, the adjustment is just enough to compensate for slippage caused by more-than- 3- year pandemic since the last increase of the State budget. However, not all public sector workers are covered under the current wage-increase plan. Ms. Nguyen Thi Lien, an employee of a state-owned corporation, said that due to declines in production and business, her company income has been decreasing over the last three years. If salaries are increased, the company will likely cut other allowances because they do not have funds to cover the payment increase.

Solution to control prices in need

The increase in wages also causes worries among staff. Most feel that the consumption prices will also increase with wages. Therefore, according to experts, to make the salary increase be an active factor in improving living standards and encouraging employees to work more efficiently, the government should strengthen and even find more solutions to curb inflation and control the macroeconomy. Regarding the control of goods prices and services after a base salary increase, Deputy Chairman of the National Assembly's Law Committee Nguyen Truong Giang affirmed that, the Government has had experiences in this regard. Director of the Price Statistics Department at the General Statistics Office Nguyen Thu Oanh said that the current supply of goods is guaranteed. Therefore, the salary increase is unlikely to lead to a sudden increase in commodity prices./.