Are pilot salaries in Vietnam as “huge” as rumored?

Pilot salaries have decreased seriously

In the draft Decree of the Government supplementing Decree No. 87/2021/ND-CP on extending the implementation time and amending and supplementing a number of articles of Decree No. 20/2020/ND-CP piloting labor management, salary bonus for some episodes economic group of state corporations Ministry Labour – War Invalids and Social Affairs said that after 3 years of implementing Decree No. 20, limitations have arisen, especially for the General Assembly. Vietnam Airlines Company (VNA) and Vietnam Flight Management Corporation (VATM) need to be resolved.

Since the end of 2020, the Covid-19 pandemic has had a negative impact, causing a serious decline in sales. respect production targets business of VNA and VATM. While Decree No. 20 was developed under the condition that businesses are on a normal growth path, it does not stipulate a minimum floor level for wages.

This leads to the salary income of The number of workers and managers calculated according to the provisions of Decree No. 20 seriously decreased to only about 40% – 50% compared to 2019 (the time before the pilot implementation).

Based on the report of Ministry of Labor – Invalids and Social Affairs The Government has issued Decree No. 87/2021/ND-CP amending and supplementing Decree No. 20 in the direction of regulating the lowest salary floor to 65% of the 2019 salary (before the Covid-19 epidemic).< /p>

For VNA, after implementing Decree No. 87, especially recently, production and business activities have basically returned to normal when the Covid-19 epidemic is under control. has been raised to near the pre-epidemic salary (2019).

Vietnamese pilots are “inferior” to foreign personnel

Exclusively for Vietnamese pilots Before implementing the salary pilot according to Decree No. 20, the salaries of Vietnamese pilots were very inadequate and much lower than those of foreign pilots in the same category. working for VNA.

Accordingly, the average salary of Vietnamese pilots in 2018 is 124 million VND/person/month, equal to 50% of the salary of foreign pilots, which is 249,69 million VND/person. /month.

In 2019, the salary of this group is 135,4 million VND/person/month, equal to 48% of the salary of foreign pilots (281,68 million VND/person/month) working for the same company. VNA.

Period 2023-2025 Ministry Labor – Invalids and Social Affairs estimates that Vietnam’s pilot workforce is 865,959 and 1,044 people, respectively. phi-cong-300-million-dongthang-cuc-hang-khong-meo-mat-chao-tua-20191209123237197.htm”>average annual salary of Vietnamese pilots (excluding funds additional salary) are 115 6 128 0 and 134 8 million VND/person/month respectively.

In addition, the average salary of foreign pilots working for VNA is 268 4 273 respectively. 7 279 2 million VND (increasing according to market supply and demand).

Accordingly, without calculating the additional salary fund for Vietnamese pilots, the average salary of Vietnamese pilots is expected in the period 2023-2025 is only equal to 43-48% of the average salary of foreign pilots flying for VNA.

When piloting salaries as prescribed in Decree No. 20, the Government allows additional The difference between the salaries of Vietnamese pilots and foreign pilots is used to calculate the salary unit price with the condition that the planned profit in 2020 is not lower than the average realized profit in the 2018-2019 period.

However, due to the impact of the Covid-19 epidemic, VNA has not been able to compensate the difference in the salary of Vietnamese pilots compared to foreign pilots in the unit price because VNA does not guarantee profit conditions.< /p>

Up to now, due to the impact of Covid-19, the salary situation of Vietnamese pilots has become even more inadequate compared to the salary of foreign pilots.

“Bleeding” of labor resources

According to a report by VNA and the State Capital Management Committee, VNA’s current salary fund is not enough to compensate for the salaries Vietnamese pilots are having to pay. facing the situation of “bleeding of Vietnamese pilot labor resources”.

Specifically, the total number of workers working for VNA in 2022 is 6,028 people, including 4,417 people paid by VNA from the fund. Wages according to unit price and 152 foreign pilots contracted by VNA with its human resources supply partner.

VNA’s total salary fund according to unit price in 2022 is VND 1,689 billion, salary level The average salary for Vietnamese pilots is 85 million VND/month, flight attendants and the remaining professional workers are 195 million VND/month.

Although the number of Vietnamese pilots (829 people) is only accounts for 18.8% of the number of workers paid by VNA but accounts for 50% of the total salary fund by unit price.

The average salary of Vietnamese pilots (85 million VND/month) is only equal to 59% compared to foreign pilots (about 145 million/month) working at VNA.

From the above reality and opinions of agencies of the Ministry of Labor, War Invalids and Social Affairs, we believe that It is necessary to develop a Decree amending and supplementing Decree No. 20/2020/ND-CP and Decree No. 87/2021/ND-CP on extending the implementation time and amending and supplementing a number of articles of Decree No. 20/2020/ND-CP to allow VNA to calculate additional salaries paid to Vietnamese pilots to retain and attract this workforce to contribute to stabilizing VNA’s production and business activities.

The draft Decree proposes to supplement regulations allowing VNA to calculate additional salaries paid to Vietnamese pilots.