Firms urged to exceed new minimum wage

HCM CITY — Non-State companies and organisations should pay higher salaries than the new minimum wage set by the Government so that workers can meet their daily expenses, a HCM City official said.

Nguyen Thi Dan, head of the Department of Labour, Invalids, Social Affairs' Labour and Salary Office, said the cost of food and accommodation has been increasing relentlessly while the increase in minimum wage has not kept up.

The minimum salary for trained workers should be higher than the base levels by at least 7 per cent, and 12 per cent if they work in hazardous places.

The Government has also made changes to the wage zones (which are classified on a descending scale of 1 to 4), mostly in the south, following petitions that localities with the same cost of living are classified in different zones based just on location.

Under the new dispensation, foreign-owned businesses have to increase minimum salary from VND1 million-1.34 million to VND1.1 million–1.55 million per month, depending on the zone.

At domestic businesses and organisations, the wages have risen from VND730,000 – VND980,000 to VND830,000-VND1.35 million. — VNS

Related Articles

• Software firms urged to innovate
• Local firms warned of new U.S. safety rules on children’s goods
• Higher capital requirement for listing in the works
• Fast growing private sector needs greater support
• Nation joins Trans-Pacific Partnership

Non-State workers to receive salary increase next year

Workers at all non-State enterprises and organisations will be entitled to minimum monthly wage increases ranging from of 100,000-370,000 VND (5-19 USD) as of next year.

The rises will take the minimum salary level for workers in foreign-invested businesses to between 1.1-1.55 million VND (55-75 USD) against the current level of 1-1.34 million VND (50-67 USD) per month.

Workers at domestic businesses and organisations will see their minimum salary increase from 730,000-980,000 VND (36.5-49 USD) per month to 830,000-1.35 million VND (41.5-67.5 USD).

The salary increase will apply to employees working for businesses split into four regions as of January 1 and July 1, 2011, under two newly-issued Government decrees.

"It is a good news to hear about the salary increase but it is still not enough to help workers like us cover daily expenses, including food and accommodation, because the cost of many things has increased," said Do Minh Hang, a worker at a garment and textile company in Hanoi.

Deputy head of the HCM City Export Processing and Industrial Zone Authority Nguyen Tan Dinh said the salary increase failes to match the reality as the average salary of many businesses in industrial zones has risen to more than 2 million VND (100 USD).

The low minimum salary level would hinder recruitment as it could not compete with other businesses, he said at a recent conference in HCM City to discuss the salary increase plan.

A survey conducted earlier this year by the Ministry of Labour, War Invalids and Social Affairs involving 1,700 enterprises revealed that about 90 per cent of them had already increased salaries to higher than the minimum levels set out for 2011.

Chairman of the Craft Villages Association Vu Quoc Tuan said the salary increase is not enough and the latest survey shows that the current minimum salary level meets only 30-40 percent of workers' needs.

Economic expert Vo Tri Thanh, deputy head of the Central Economic Management Research Institute, said salaries should be linked with productivity, not the consumer price index, to motivate business development./.

Related Articles

• IFC: Vietnam needs to increase PPP to support economy
• Vice State President receives Catholic delegation
• Ethnic minorities, poor to receive free legal aid
• Handicraft workers use own trademarks
• PM receives outgoing British ambassador Kent