Deputy Prime Minister Vuong Dinh Hue (Source: VNA)
 
Hanoi (VNA) – Economic growth and job creation must be taken into consideration when it comes to adjusting retirement age, Deputy Prime Minister Vuong Dinh Hue told lawmakers during a question-and-answer session on June 6 as part of the 14th National Assembly’s ongoing fifth session in Hanoi.

Other factors include characteristics of each sector, population aging, gender equality and gap in retirement age between men and women.

He also noted that a retirement age adjustment is linked to ensuring long-term balance of the Social Insurance Fund. Under the resolution adopted by the Party Central Committee at its recent plenary meeting, retirement age will be adjusted from 2021 in a cautious way under a roadmap. Depending on each special sector, retirement age could be lengthened or cut by five years.

Hue added the legislature will discuss thoroughly before deciding on the issue.

As regards salary reform for officials and cadres, members of the armed forces and workers, Hue said the issue is of public concern so synchronous measures should be taken, including streamlining personnel on State payroll, promoting manufacturing to increase State budget collections, preventing loss of revenue to the State budget and exercising thrift.

As many as 10 percent of regular State spending will be used for the effort, he said.

He stressed the importance of increasing local State budget collection, with localities allowed to use 70 percent of the surplus in budget revenue for salary reform instead of 50 percent at current.

Based on the Politburo’s Resolution No.07, the Government has calculated salary payment options while ensuring public debt ceiling at 65 percent of the gross domestic product and spending on transport infrastructure and capital construction along with overspending at 26 percent, and controlling inflation at the same time.

Salary increase in tandem with higher labour production and efficiency of the State apparatus will not impact the consumer price index, he said.-VNA