Vietnam delays hike in public sector wages

By Hoang Thuy, Viet Tuan   June 20, 2020 | 12:00 pm GMT+7
Vietnam delays hike in public sector wages
People complete administrative procedures at the Hanoi Center for Employment Services in Cau Giay District, Hanoi in June 2020. Photo by VnExpress/Ngoc Thanh.
Vietnamese lawmakers have postponed the 7.4 percent wage hike for civil servants scheduled for July over Covid-19 pressures on the budget.

They have also asked the government to fix another date for the hike depending on the socio-economic situation.

Under the approved hike, monthly base wages of civil servants and public employees would go up from VND1.49 million ($64) to VND1.6 million ($69).

Finance Minister Dinh Tien Dung had said earlier that the raise would only benefit people in the public sector and those receiving retirement pensions, while other sections of the society like farmers and the self-employed face not just reduced incomes but loss of jobs and livelihood as a result of the pandemic.

Lawmakers also tasked the government with reducing by a minimum of 70 percent the money spent on organizing most events and conferences as well as business trips for state officials this year.

Other regular expenses need to be cut by 10 percent, the parliament directed.

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