Wage policies reform – international experience and implications for Vietnam

Date modify: 12-14-2017
On December 13th, 2017, in Hanoi, Central Steering Committee on wage, social insurance and preference for people with special contributions policies reform in cooperation with International Labour Organization (ILO) Vietnam held the workshop on “wage policy reform – international experience and implications for Vietnam”. Deputy Prime Minister Vuong Dinh Hue, Head of the Steering Committee chaired the workshop. Attending the workshop were Mr. Le Vinh Tan, Minister of Home Affairs, Mr. Dao Ngoc Dung, Minister of Labour – Invalids and Social Affairs; Mr. Chang Hee Lee, Director of ILO Vietnam, representatives of the leadership from relevant ministries and sectors, experts, managers, scientists in the field of administrative reform, economic area, wage…

In the speech at the event, Deputy Prime Minister Vuong Dinh Hue said that wage reform in Vietnam had been implemented since the 1960s. Accordingly, the current wage policy basically meets the living standards and improves with the increasing trend of the officials, public servants, and public sector’s employees.

 "However, wage policy reform is a difficult task not only in Vietnam. Thus it is necessary to carefully study the current status of the wage system, show the results achieved, the limitations, and thoroughly study the international experience in order to apply in accordance with the real situation in Vietnam ... "- Deputy Prime Minister Vuong Dinh Hue said and asked the experts, scientists to contribute ideas as the base of the successful construction of the scheme.

"The demand of  wage policies reform has come to maturity, this is both pressure and motivation. The Central has adopted Resolution No.18 and No.19 with strong policy Decisions such as reducing 10% staffing at units and till the year of 2021, this goal will be basically achieved"- Deputy Prime Minister stressed.

Mr. Changhee Lee pledged to work closely with the Government, trade union organizations and employers during the procedures of wage policy reform in Vietnam.

According to the Director of ILO Viet Nam, Mr.Chang Hee Lee, the reform of wage policy should be done properly, enough, it is necessary to study and set up the process of reforming, with the participation of the whole system both inside and outside of the public sector. "In order to harmonize the common interests, Vietnam should simultaneously adjust the minimum wage and base salary to create a motivation for the socio-economic development," said the ILO Director.

Also at the workshop, experts and scientists discussed frankly, shared their opinion on theories and practices of wage policy reform, focusing on issues such as: Assessment the current state of wage policy for officials, civil servants, public sector’s employees, armed forces and labourers in enterprises (including advantages, limitations and inadequacies). As well as, workshop also focused on analyzing and clarifying the causes of shortcomings, ineffective and lessons learned in management, administration, policy formulation and implementation; Sharing international experience on wage policy reform, including implications for Vietnam and conditions of application; Proposing  recommendation on opinion and orientations for wage reform in Vietnam in the coming time, in which focusing on the efficiency, feasibility and suitability of the actual situation in Vietnam.

At the conclusion of the workshop, Deputy Prime Minister Vuong Dinh Hue highly appreciated the speeches and comments of the experts, managers and participants. The Deputy Prime Minister asked members of the Steering Committee, the Drafting Board and the Editorial Team to study and receive the opinion in the workshop in order to complete the Scheme on Wage Policy reform for Officials, Civil Servants, Public Sector’s Employees, Armed Forces and Labour Working in enterprises and  submit to competent authorities for consideration and decision.


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