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Home / Social Affairs
Ministries asked to balance budget to ensure wage reform in 2016
Thu Minh 11:30, 2015/12/17
According to the decision issued on December 14 on the allocation of the State budget in 2016, the Prime Minister asked ministries, ministerial-level agencies, Government and State agencies, and State-owned enterprises to balance their budget to ensure adjustment of salaries and pensions.
Under the decision, from January 1, 2016, the salary increase will be applied to pensioners, who are receiving less than 2 million VND a month, and a subsidy plan will be carried out for primary school teachers who have begun their work before 1995. The reform aims to ensure those people’s pension is equal to basic salary. 
Other pensioners and contributors to the country continue receiving an 8% increase in salary and subsidy as they implemented in 2015. 
 
Photo for illustration
Photo for illustration
From May 1, 2016, agencies were asked to raise public employees' basic salary rate from 1.15 million VND to 1.21 million VND.
Prime Minister Dung required provinces and centrally-governed cities to implement mechanisms to create sources for wage reform.
The Prime Minister said that provinces and cities have to reduce their recurrent expenditures by at least 10% of their current level to pay for the wage reform in 2016.
For poor localities that lack of sources for wage reform in 2016 after the implementation of recurrent-expenditure reduction, the Ministry of Finance would consider providing financial assistances from the State budget, the Prime Minister stated.
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