Minister admits living costs outstrip minimum wage

December 20, 2011 - 03:15 PM

The Minister of Labour, Invalids and Social Affair admitted that the current minimum wage is still far from meeting rising costs.

Current minimum wage is still far from meeting rising costs and the spiraling inflation rate, admitted, Pham Thi Hai Chuyen, Minister of Labour, Invalids and Social Affair (Molisa).

High inflation causes difficulties for labourers

During an online forum on social security, job creation and poverty reduction for the period of 2011-2015 held on December 19, Chuyen said, “The minimum wage is a sensitive issue and should be based on a base standard of living for workers. Still, in the current economic situation, the high inflation rate must also be taken into account. The National Assembly has instructed the Government to draft a law on the minimum wage.”

She also noted that Molisa has cooperated with the Ministry of Finance to issue policies on electricity price subsidies which would provide assistance of VND30,000 (USD1.42) for households that fall below the poverty line. People who have retirement pensions or who receive social insurance subsidies below VND2.5 million (USD119) per moth are also entitled to financial assistance of VND250,000 per month. The ministries have provided 60,000 tonnes of rice to 811,000 poor households.

During Tet, Molisa also plans to offer financial assistance to revolutionary veterans who have made great contributions, the disadvantaged, as well as those who live in areas that have been hit hard by floods.

Support for the unemployed

The minister cited statistics from the Ministry of Planning and Investment, which say that by November of this year the country licensed a total 609,907 businesses. Among those, 76,317 had their licenses revoked, accounting for 12.6% of the total. A number of others have faced difficulties that impact the lives of their employees.

“We pay special attention to this problem of unemployment, offering assistance in finding new jobs and other support programmes. We have urged localities to prioritise loans from the National Employment Fund for the unemployed. There are also job centres set up to aid in recruitment and give information,” she emphasised.

According to the minister, the current official poverty line is VND400,000 (USD19) per month for those living in rural areas, and VND500,000 (USD23.8) per month in urban areas. But, she said, these levels should be adjusted to better reflect economic realities such as the rising price of essential goods. This requires careful assessment and supervision, she noted, adding that, even though it is unfeasible to change the official poverty line immediately, the Government will take measures to aid those in need.