Vietnam to spend $1.384B to raise minimum salary by average 25% next May

Vietnamese National Assembly (NA), the country’s highest legislative body, has approved spending of VND27 trillion ($1.384 billion) to raise monthly minimum salary for state employees by average 25% from May 2011.

Under the resolution recently ratified by the NA, new minimum salaries for domestic enterprises will vary from VND830,000 ($42.56) to VND1.27 million, and the thresholds for foreign-invested firms will be from VND1.1 million to VND1.5 million.

From May 1, 2011, the government will apply the same increase to allowances for social beneficiaries and on retirement pension.

The government also commits seniority allowances and a 10% assignment allowance to teachers.

Currently, the country is applying minimum salary levels to employees in domestic firms from VND730,000 to VND980,000 per month and in foreign-invested companies between VND1 million and VND1.34 million.

The payments, however, can only covers between 60% and 65% of basic living costs for workers and are 20% lower than the must-paid salary, local experts said.

Vietnam now has more than 47 million people of working age with total workers in the state-owned sector accounting for 9.6%, those in the non-state sector 88.8 % and 1.6% in the foreign-invested sector.- VCCI

Tags: Vietnam minimum salary