Wage policy is more realistic thanks to surveying workers' living standards

According to Decision 380/QD-TTg newly issued by the Government, the Project on building and announcing the annual minimum living standard sets a goal to improve the calculation method and data source to serve the determination of the minimum living standard of residents and workers.

A noteworthy content of the project is the research and development of a separate calculation method and data source to compile the minimum living standards of workers.

After the pilot phase, the survey results will be used to complete the calculation method, as a basis for announcing the minimum living standard of workers annually from 2028.

Talking to Lao Dong Newspaper, Dr. Doan Van Tinh - Deputy Head of the Faculty of Human Resource Management, Academy of Public Administration and Management under the Ho Chi Minh National Academy of Politics, said that the implementation of a separate survey on employee spending according to the above decision is not simply a statistical survey, but also shows a change in policy management thinking.

According to him, the meaning of this is expressed in three main aspects.

First, ensure representativeness and specificity. Unlike calculations based on common population data, separate surveys help clearly identify the need for labor reproduction.

Workers, especially in industrial parks and urban areas, have a specific spending structure such as housing, travel, healthcare and education for children. These data help objectively determine the "labor costs" in the market.

Second, approaching international standards. The application of the basic cost-needs method allows for the scientific identification of a basket of essential goods including food, foodstuffs and non-food needs. Thereby, the minimum living standard is not only limited to ensuring survival but towards a living standard sufficient for development.

Third, contributing to transparency of labor relations. The survey results will become an objective database to serve the negotiations of the National Wage Council, helping to reduce prolonged debates between employee representatives and employers, replacing emotional assessments with specific data.

According to Dr. Doan Van Tinh, when there are more accurate data on employee spending and it is announced periodically (expected from 2028), the adjustment of salary policy will be more flexible and suitable to reality.

First of all, wages will operate closer to market rules. Wages can be adjusted accordingly to fluctuations in labor costs, economic growth rates and labor productivity. This helps the State maintain its role in establishing a "social security floor", while promoting a substantive negotiation mechanism between parties in labor relations" - he shared.

In addition, regular data updates also create a "buffer" to help the Government and businesses promptly respond to fluctuations such as inflation or economic crises. Thanks to this, the real value of wages is better guaranteed, helping workers stabilize their lives and feel secure at work.

For the public sector, data on the minimum living standard close to reality will also be an important basis for building income policies for cadres, civil servants, and public employees in a more competitive direction, contributing to improving the quality of public services.

Read the original here