A number of enterprises have asked for a three to six-month delay on the planned adjustment to basic salaries, citing tough economic times as the reason.
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| Workers are having difficulties with current salary |
The Ministry of Labor, War Invalids and Social Affairs (Molisa) proposed two plans for a salary increase, to be applied from January 1, 2013.
Under the first plan, the new basic salary will be divided by area, with highest salaries going to the most developed areas. Area 1 includes Hanoi, HCM City, Quang Ninh, Danang, Binh Duong, Dong Nai and Vung Tau, which will have salaries increased to VND2.7 million (USD130).
Area 2 includes Haiphong, Vinh Phuc, Thai Nguyen, Khanh Hoa, Binh Phuoc, Tay Ninh, Long An, An Giang, Can Tho and Ca Mau, and will have VND2.4 million as a basic salary. The area III and IV will respectively set VND2,130,000 and VND1,930,000 as basic salaries.
Under the second plan, VND2.5 million will be the basic salary for workers in area I, while salaries will be raised to VND2,250,000 in area II. Workers in areas III and IV will have VND1,950,000 and VND1.8 million for basic salary, respectively.
However, the Department of Salary and Wage cited the General Statistics Office of Vietnam that nearly 26,000 enterprises had shut down in the first half of 2012, a 5.4% increase from the same period last year. In HCM City, 70% of enterprises have reported losses.
Because of the bad financial state of these businesses in the last half of the year, many have proposed the deadline for basic salary increase by three to six months. Ngo Chi Hung, head of Hanoi Management Board of Industrial and Processing Zones, said the Government should raise the salaries for workers in the public and private sectors at the same time, by May 1, 2013.
Representatives of Vietnam Chamber of Commerce and Industry (VCCI) in the southern region presented the opinion that an increase of only 10-15% or VND300-500,000 would be more reasonable in the current times.
However, enterprises' opinions did not gain traction.
A representative of the Vietnam Trade Union said that their survey showed that current salaries can only cover about 60% of most workers basic needs. The Molisa' survey showed a similar results, saying that the base salary in place now can only support 57-63% of the workers' basic needs. Meanwhile, the prices of gas, food and electricity continue to rise.
Pham Minh Huan, Deputy Minister of Molisa, affirmed that the ministry has taken into account the the troubles of businesses and that the Government will provide necessary support. However, the adjustment in basic salaries is necessary due to inflation.
Huan went on to say that the draft decree on salary adjustment will be released by October. The Government will also form a national wage and salary council to act as an arbitrator between workers and enterprises. The council will also be responsible for salary adjustment each year.