Labor officials propose minimum wage increase effective on Jan 1, 2008

At a press briefing, labor officials said they had submitted to the Government a plan to adjust the minimum wage in order to try to improve the living standards of wage workers.

The adjustment depends on where businesses are, with the difference between the minimum pay in three designated areas set at about 10%. The rise for workers in domestically owned businesses will range from 20% to 38% and those in foreign-invested enterprises from 13% to 15%.

With the adjustment, workers in local businesses will have a minimum pay of VND620,000 a month from the current VND450,000 and in foreign-invested enterprises a minimum of VND800,000 from VND710,000.

Specifically, workers in local businesses in the inner districts of Hanoi and HCM City will get pay of at least VND620,000.

Those in the second area will get at least VND580,000. This area includes suburban districts of Hanoi and HCM City, Haiphong, Halong, Bien Hoa and Vung Tau, Thu Dau Mot Township, and Thuan An, Di An, Ben Cat and Tan Uyen districts in Binh Duong Province, which neighbors HCM City.

Those in the third area, which covers all other localities, will get at least VND540,000.

The minimum pay for workers in foreign-invested enterprises is expected to increase by 13-15% on the current level, namely by VND1 million for enterprises in the first area, VND900,000 for those in the second area, and VND800,000 for those in the third area.

At present, more than one million workers are employed by foreign companies, two million by State-owned enterprises and three million by private businesses. The minimum pay for workers in domestically owned businesses is VND450,000 a month, and for foreign-invested enterprises in the three designated areas are VND870,000, VND790,000 and VND710,000 a month.

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