Why does the basic salary increase by 30% but the pension only increases by 15%?

On the morning of June 29, Secretary General of the National Assembly and Head of the National Assembly Office Bui Van Cuong chaired a press conference to announce the results of the 7th Session of the 15th National Assembly.

At the press conference, explaining the 30% increase in basic salary but only 15% increase in pension, Vice Chairman of the National Assembly's Social Committee Dang Thuan Phong said that in previous adjustments, pension increases were applied. According to calculations, this time, if the pension was only increased by 11.5%, it would be equal to the 30% increase in basic salary for officials, civil servants and public employees. However, due to the difficult life of pensioners, it was decided to increase the salary by 15% for retirees.

"Such a pension increase is very humane," he said.

Regarding the issue of salary reform according to Resolution 27 of the Central Committee, the Vice Chairman of the Social Committee stated: The policy of comprehensive salary reform has been postponed 3 times, implemented according to the roadmap with the spirit of being cautious, certain and effective. The Steering Committee for Salary Reform has met many times. Currently, 4 contents have been implemented and 2 contents have not been implemented.

Regarding the cause, according to Mr. Dang Thuan Phong, the determination of job positions is not synchronous, there is no relative consensus among ministries, branches, and localities even though they are in the same field. In addition, the allowance regime still has many problems. If this is not handled synchronously, many people will be disadvantaged, especially those working in remote, isolated, and particularly difficult areas. In addition, there are also differences between pensioners before and after July 1, 2024, which will cause inadequacies and lack of synchronization. In particular, the bigger problem is that more than 20 related documents have to be revised when abolishing the basic salary, so the Government has not been able to submit and handle it. Therefore, this issue needs to be assessed very carefully and resources must be balanced.

Responding to the press regarding the failure to include the Personal Income Tax Law in the Law and Ordinance Development Program for the 15th tenure, Deputy Chairman of the National Assembly's Law Committee Nguyen Phuong Thuy said that in the Plan of the National Assembly Standing Committee on the orientation of the Law and Ordinance Development Program for the 15th tenure of the National Assembly, the task was assigned to the Government to study and review to amend and supplement tax laws.

At the recent National Assembly session discussing socio-economic issues, responding to the opinions of National Assembly deputies, Minister of Finance Ho Duc Phoc raised the issue of amending personal income tax related to determining the starting level and family deductions.

The Vice Chairman of the Law Committee commented that public opinion sees this as an issue that needs to be implemented immediately. However, to include it in the Law and Ordinance Development Program, strict requirements must be followed. Therefore, when the Ministry of Finance - the agency directly responsible for this field - prepares and advises the Government to complete the dossier to propose including this project in the Law and Ordinance Development Program, the National Assembly Standing Committee will consider and report to the National Assembly on the addition of amendments to this law at the nearest possible session.

"Although this is an urgent requirement, it must still comply with regulations on procedures," Ms. Nguyen Phuong Thuy emphasized.

Regarding the Law amending and supplementing a number of articles of the Land Law, Housing Law, Real Estate Business Law, and Credit Institutions Law, Standing Member of the National Assembly's Economic Committee Phan Duc Hieu said that the nature of the amendment is to bring the above 4 Laws into effect earlier than the effective date approved by the National Assembly at the Extraordinary Session at the beginning of the year. This is a very correct policy to soon bring policies and laws into life.

Regarding the concerns of some National Assembly deputies that if the Law takes effect earlier, it will ensure feasibility and ensure the issuance of full implementation guidance documents, Mr. Phan Duc Hieu stated: The Government has made a detailed report on progress and demonstrated its commitment and determination with very specific solutions. The Government has been very resolutely directing relevant agencies to complete drafts and decrees at the central level, local documents, and fully prepare conditions for the implementation of the laws from August 1, 2024.