>> Official: Early pay raise proposal reasonable
>> Raise of minimum wage may be higher than expected
>> Employers warn over early minimum wage increase
>> Government to consider early pay rises
The Government has approved an early increase of up to VND 2 million (USD96) per month in the minimum wage from October 1 through December 31, 2012.
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| Vietnam will apply the new minimum wage levels from October 1 |
According to a government decree, a minimum wage of VND 2 million (USD96) per month will be applied to Hanoi, Danang, Vung Tau and Ho Chi Minh cities and Quang Ninh, Binh Duong and Dong Nai provinces.
The Government agreed to increase the minimum wage for Haiphong City and Can Tho City, Vinh Phuc, Thai Nguyen, Khanh Hoa, Binh Phuoc, Tay Ninh, Long An, An Giang, and Ca Mau provinces to VND 1.78 million (USD 85.4) per month.
The minimum wage will rise to VND 1.55 million (USD 74.3) a month in Bac Ninh, Hai Duong, Hung Yen, Hue, Binh Dinh, Gia Lai, Dak Lak, Lam Dong, Ninh Thuan, Binh Thuan, Dong Thap, Tien Giang, Vinh Long, Ben Tre, Kien Giang, Hau Giang, Soc Trang, and Bac Lieu.
All remaining localities will see minimum wage rises to VND1.4 million (USD67.1) a month.
The new minimum are between VND300,000 and VND650,000 (USD14.4-USD31.1) higher than the current wages.
According to the regulation, minimum wages at foreign-invested companies will stand at VND120,000-VND270,000 (USD5.7-USD12.9) higher than domestic companies.
Recently, the Ministry of Finance forecast that consumer price index would continue to surge at around 1% in August, bringing cumulative inflation since December to around 16% so far this year.
With inflation for the entire year targeted at 17 percent, Nguyen Tien Thoa, Director of the ministry\'s Price Management Department, admitted that it would be difficult to meet the target due the the effects of both domestic and international economic factors.
He urged the Government to map out a roadmap for overall prices increases in order to avoid economical shock, along with stabilising prices of some staples.
