Minimum salaries’ hike earlier than schedule

Amid skyrocketing inflation, the Ministry of Labour, War Invalids and Social Affairs has proposed the government to raise minimum salaries in October, one quarter earlier than its initial schedule.

Pham Minh Huan, Vice Minister of Labour, War Invalids and Social Affairs, announced at a governmental press conference held in Hanoi yesterday that the minimum salary increase was just a part of the government’s 2008-2012 roadmap.

“But due to high inflation, we have proposed the government to increase minimum salary in the last quarter this year, instead of the first quarter of next year,” said Huan.

The new minimum salaries will be applied to both domestic and foreign invested enterprises operating in Vietnam, said Huan.

“The increase aims to ensure the lives of workers affected by economic instability,” he added.

Under the proposal of Ministry of Labour, War Invalids and Social Affairs, the increase levels will be divided into four zones. In which, new minimum salary in the first zone is VND1.9 million ($91.7), the second zone VND1.730 million ($83.5), the third zone VND1.550 million ($74.8) and the fourth zone VND1.400 million ($67.6).

The first zone includes internal districts of Hanoi and Ho Chi Minh City, the second zone includes suburban districts of the two country’s largest cities and some of provinces’ cities and districts having good condition for developing economy. The third and fourth zones are the remaining localities having underdeveloped conditions for developing economy.

The current minimum salaries at domestic enterprises in the four zones are VND1.350 million ($65.2), VND1.200 million ($57.9), VND1.050 million ($50.7) and VND830,000 ($40), respectively. Meanwhile, the current minimum salaries at foreign invested ones are VND1.550 million ($74.8), VND1.350 million ($65.2), VND1.170 million ($56.5) and VND1.100 million ($53.1), respectively. – VIR

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