The pay raises, which would be 0.6 times their salary this year, 1.2 times in 2019, and 1.8 times by 2020, will be submitted to the municipal People’s Council for approval in March.
Phong said the decision on piloting special policies which allow the city to make more independent decisions will become effective on January 15.
HCM City makes up the largest proportion, up to 27.8 percent, of the state budget, while the labour productivity of the city’s government officials is 1.5 times higher than that of other localities across the country.
Each government official renders services to around 700 residents compared with 340 residents per official in other localities.
Many officials in HCM City, who earn the same level of salaries as their counterparts in other localities, must seek outside financial support as prices in HCM City are higher than in other provinces and cities.
Dao Thi Nga, who works for a food safety management agency in HCM City, said she and her husband have relied on support from the husband’s family for several years.
“My husband’s mother has helped us as we both have low salaries,” Nga said.
Tran Vinh Tuyen, Vice Cairman of the HCM City People’s Committee, said many young male officials do not want to tell their girlfriends about their jobs because they may think the salary is too low.
In other countries, especially in Singapore, Government officials are proud to talk about their jobs because they receive high salaries that show their competence, Tuyen said.
However, many government officials in HCM City say that an increase for all government officials would not encourage competent officials to work harder.
Bui Anh Tusn, an official at the urban railroad management unit of HCM City, said that salaries for government officials should be based on each position, the individual’s work experience and performance. The same rate should not be applied to everyone, he added.
“Salary payments create (healthy) competition among officials at a Government office, and at the same time offer opportunities for promotions for young officials,” said Tuan.
The funds for increases in civil servants’ incomes will come from the state.