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
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
* What do you think about minimum wage levels?Theadjustment of minimum wage is very important to both employers andemployees, and plays an important role in the country's current economicgrowth. Adjusting the minimum wage should be done if it canensure two factors are met: raising incomes and improving livingconditions for workers, as well as maintaining companies'competitiveness and sustainable development of the economy. Strongwage increases dampen corporate competitiveness and economic growth;eventually labourers are the ones who take the hit. Small salary hikes,however, make life tough for employees, in turn affecting productivityand economic growth. Annual salary adjustment is a difficult matter between businesses and workers, trying to find a level suitable for both. * As a representative of employers, what increase will VCCI recommend at the National Salary Council meeting later this month?In2015, the economy is thriving but productivity has not increased.Enterprises still face … [Read more...] about VCCI Chairman speaks about minimum wage hike plan
The new wage rates will be VND250,000-400,000 (US$11.1-17.8) per month higher than the current ones, depending on geographical zones, according to the decree No.122 dated November 14, 2015.Localities in Vietnam are divided into four groups based on their geographical locations.Zone 1 covers the urban parts of Hanoi and Ho Chi Minh City, while Zone 2 is applicable to the rural areas of Hanoi and Ho Chi Minh City, along with the urban regions of Can Tho City, Da Nang City and Hai Phong City.Zone 3 comprises provincial cities and the districts of Bac Ninh Province, Bac Giang Province, Hai Duong Province, and Vinh Phuc Province, and Zone 4 consists of the remaining localities.The monthly minimum wage for Zone 1 will increase from the current VND3.1 million ($138) to VND3.5 million ($155.8), and that of Zone 2 will rise from VND2.75 million ($122.4) to VND3.1 million.For Zones 3 and 4, the monthly minimum wages will go up from VND2.4 million ($106.8) and VND2.15 million ($95.7) to VND2.7 … [Read more...] about Vietnam’s regional minimum wages to rise 12.4% next year
Vietnam’s current minimum wage system came into existence just over a decade ago. A massive strikewave beginning at the end of 2005 began to protest the minimum wage in foreign-invested factories, which, despite inflation, had been frozen for 7 years. In response, the minimum wage was raised by 40 percent and a tripartite minimum wage system – with voices from workers, employees, and the state - was set up. This is how it remains today. Every year, representatives from the country’s trade union federation, the Vietnam General Confederation of Labor (VGCL), the Ministry of Labor, Invalids, and Social Affairs (MOLISA), and the Vietnam Chamber of Commerce and Industry (VCCI) come together to debate and decide the minimum wage levels for the following year. There are four different minimum wage regions, which are supposed to reflect the cost of living in each area. Region I, including Hanoi and Ho Chi Minh City, has the highest minimum wage, while region IV, which is for … [Read more...] about Is Vietnam’s minimum wage structure sustainable?
Vu Tien Loc, chairman of the Viet Nam Chamber of Commerce and Industry, spoke to Thoi Bao Kinh Te (Vietnam Economic Times) about plans to increase the minimum wage in 2016.What do you think about minimum wage levels?The adjustment of minimum wage is very important to both employers and employees, and plays an important role in the country's current economic growth. Adjusting the minimum wage should be done if it can ensure two factors are met: raising incomes and improving living conditions for workers, as well as maintaining companies' competitiveness and sustainable development of the economy. Strong wage increases dampen corporate competitiveness and economic growth; eventually labourers are the ones who take the hit. Small salary hikes, however, make life tough for employees, in turn affecting productivity and economic growth. Annual salary adjustment is a difficult matter between businesses and workers, trying to find a level suitable for both. As a representative of employers, … [Read more...] about Minimum wage to rise next year
The region-based minimum wage in Viet Nam would increase by 15.1 per cent starting next year under a proposal that the National Wage Council recently submitted to the Government. The minimum wage varies between four regions. Under the proposal, it would range from VND2.2 million (US$103) to VND3.1 million ($145) per month. Some feel the move is necessary to help workers cover the increasing cost of living. However, others express concern that a minimum wage increase would be costly to businesses. Viet Nam News reporters Minh Thi and Thu Huong talked to various stakeholders about this issue. The Government is planning to raise the minimum wage so that it will soon cover the minimum living standard. How can we determine the minimum living standard? Pham Minh Huan, Deputy Minister of Labour, Invalids and Social Affairs, Chairman of the National Wage Council To set the minimum wage, the key is to first determine the minimum living standard. This should be considered in the context … [Read more...] about Experts discuss minimum wage increase
The National Wage Council is likely to directly advise on next year's minimum wage adjustments, MOLISA Deputy Minister and Council Head Pham Minh Huan told Tin tuc (News) newspaper. What is the mechanism for the adjustment of minimum wage in 2014? The previous minimum wage mechanism was based on indirect consultation between relevant sides and the Government, in which the Ministry of Labour, Invalids and Social Affairs (MoLISA) proposed plans for the relevant sides' discussions and later submitted it for the Government's approval. In direct mechanism, representatives for workers and employers, in response to the council's discussion, proposed a minimum salary plan in an effort to gain the highest support and agreeability from all sides. It is obviously difficult to reach agreement for the benefit of all sides. The labourers always want to increase salary, while employers want to adjust minimum wage based on competitive and expense factors. The Government would guide the … [Read more...] about Minimum wage increase enhances living standards for key workers