Efforts needed to curb price hikes following salary increases

June 17, 2024 | 16:13

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A salary policy reform is scheduled to be implemented from July 1, with the average salary of officials, civil servants and public employees expected to increase by about 30 per cent, including basic salary and allowances.

Efforts needed to curb price hikes following salary increases

Elderly people in Ho Chi Minh City receive pensions at district post offices - Illustrative image (Photo: VNA)

Hanoi – A salary policy reform is scheduled to be implemented from July 1, with the average salary of officials, civil servants and public employees expected to increase by about 30 per cent, including basic salary and allowances.

Notably, those working in the education and health sectors are likely to enjoy a higher salary than the average level.

This is a significant increase compared to the average annual rise of 7 per cent before the salary reform is implemented.

However, wage increases will only be truly meaningful when commodity prices are strictly controlled and the rises do not create inflation.

In a recent meeting of the Price Management Steering Committee, Deputy Prime Minister Le Minh Khai, who is also head of the committee, requested not to have unreasonable price increases after the salary is raised.

To stabilise the market, it is necessary to ensure the smooth supply and circulation of goods to meet consumption needs, and check price listings at traditional markets, Khai stressed.

He asked ministries, sectors and localities to propose appropriate solutions and scenarios, and coordinate well with each other to prevent prices of goods, especially essential products, from rising.

Salary gaps must be addressed through upskilling

Addressing income disparities between domestic and foreign workers in Vietnam requires collaboration and learning from international cases. Christopher Lee, director of Management Consulting and Workforce Transformation at PwC Vietnam, told VIR’s Linh Le about the focus on developing capabilities and upskilling the local workforce.

Local workers suffer from salary imbalance

While Vietnam’s high-quality labour market has experienced significant growth and development in recent years, there has also been a widening income disparity between domestic and foreign workers, particularly in aviation.

By VNA

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