Minimum wage to be inflation-adjusted Thanh Thuong By Thanh Thuong - The Saigon Times Daily HCMC – The minimum salary by region will be revised based on the country’s consumer price index (CPI) from 2018 as planned, Deputy Minister of Labor, War Invalids and Social Affairs Pham Minh Huan said. Huan, who is also chairman of the National Wage Council, told the Daily that the current minimum wage adjustments are made based on the factors related to CPI, gross domestic product (GDP) growth, overall wage increases and subsistent needs of workers. As for CPI, Huan said the ministry often focuses on price changes of necessities and services like foods, healthcare and transport when proposing wage adjustments in order to meet the basic needs of workers. Despite careful consideration, there remains a big gap between the minimum wage and the actual income and spending of workers. Therefore, the ministry has to consider pushing up the minimum wage every year by 15-17%. However, … [Read more...] about Minimum wage to be inflation-adjusted
How much is minimum wage
Under the draft Labour Code amendment being discussed by lawmakers, Viet Nam will have two different minimum wage systems - one set by the Government and one determined by collective bargaining. But the amendment to the labour code is likely to be difficult to implement. Viet Nam News reporters Khanh Van and Hoa Tran talked with experts about the issue. How are minimum wages decided in Viet Nam and what are the problems in setting the rates? Truong Thi Mai, chairwoman of the NA Committee for Social Affairs: The minimum wage levels that we publicise each year have yet to reflect the real minimum living conditions of workers. In the coming time, we will do more research on this issue to build a minimum wage level that reflects the real minimum living conditions of people. This will be the basis on which workers can discuss and seek reasonable wage levels from their employers. The State plays an important role in helping workers negotiate with their employers to get a reasonable … [Read more...] about Changes to minimum wage unworkable
VietNamNet Bridge - The wage mechanism applied to state owned enterprises (SOEs) has become no more reasonable in the context of the market economy. The news that the director of the HCM City water drainage company earns VND2.6 billion a year, or 13 times higher than the pay to the Prime Minister, has stirred up the public. People cannot understand why the manager of a state owned enterprise for public interest can pocket so much money in front of supervisors, accountants, auditors and the strict regulations set by the Ministry of Labor, War Invalids and Social Affairs on the pay mechanism to SOEs' workers. In principle, the income of SOEs' workers is calculated as follows: minimum wage (x) coefficient (+) allowances. Under the government's decree No. 51, the coefficient could be between 6 and 9.1, which depends on the modes of operation of enterprises (company or state owned economic groups). The highest minimum wage stipulated in the decree is VND36 million a month, which is … [Read more...] about How much SOEs’ directors earn?
The Vietnamese government's recent decision to increase the minimum wage by 14 percent has failed to spark any enthusiasm among workers. Not only does it fail to match recent price hikes, it actually raises concerns about accelerating inflation and making things worse for most workers. As of May 1, the monthly minimum wage has gone up to VND830,000 (US$40) from VND730,000 ($35). "The government's policy will help the lowest income laborers in the society deal with part of their difficulties in the current context of high inflation," Cao Sy Kiem, chairman of the Vietnam Association of Small- and Medium-Sized Enterprises (SMEs), told Thanh Nien Weekly. "However, the wage increase has not kept up with inflation. Thus, for most workers, life will remain difficult." Consumer prices rose 17.51 percent in April from a year earlier, the largest jump in 28 months, stoked by increases in fuel and electricity prices, according to the General Statistics Office. Ha Que Huong, who has … [Read more...] about Minimum wage increase no cause for cheer
VietNamNet Bridge ' The minimum wage is scheduled for rising from January 1, 2013, but the change will be delayed from March to June 2013 if local businesses still faced difficulties in the second half of 2012. The Ministry of Labor, War Invalids and Social Affairs recently held a seminar on raising minimum wage in 2013. Ms. Nguyen Hong Ha, Vice director of the HCM City branch of the Vietnam Chamber of Commerce and Industry (VCCI), said most enterprises agreed with the increase of minimum wage. However, they said that the Government should make official announcement in September 2012 and the change should begin from March 2013. Ha said so far this year, more than 30,000 companies have stopped operating or went bankrupt. Local businesses are facing a lot of difficulties. Mr. Mai Duc Chinh, Vice Chair of the Vietnam Confederation of Labor, said the increase of minimum wage will only make the increase of employers' pay for social insurance for manual workers. Thus, … [Read more...] about Minimum wage increase may be postponed