Prime Minister Nguyen Tan Dung has just issued a new decree which will the increase minimum wage by VND250,000-400,000 (USD12-19) from January 2015.
According to the new decree, the monthly minimum wage in region 1 will be VND3.1 million, VND2,750,000 in region 2, VND2.4 million in region 3 and VND2,150,000 in region 4. This will constitute a blanket 15.1% rise from the current minimum wage.
Employers must not remove bonuses and allowances in accordance with the state laws and regulations at enterprises.
The minimum wages were set by the government to control contracts between employers and employees. The leader of Vietnam's Chamber of Commerce and Industry said minimum wages should be calculated based on GDP and specific challenges that each enterprise faces, especially during recession.
He added, "A massive minimum wage hike carried out at a time when it is beyond the capacity of our economy could lead to high rates of unemployment."
Previously, the Vietnam Chamber of Commerce and Industry proposed to raise the wage of VND3 million, the Ministry of Labour, Invalids and Social Affairs proposed a slightly higher raise of VND3.05 million, while the General Confederation of Labour suggested VND3.4 million.
