MOLISA suggests another minimum wage increase in 2010

Pay rise shock for firms

Large firms, already hard-hit by the global crisis, are scrambling to deal with MOLISA’s suggestion of a 15-20 per cent increase in Vietnamese workers’ minimum wage by early next year.

The Ministry of Labour, Invalids and Social Affairs (MoLISA) is drawing up plans for another pay rise in 2010 for state-run, domestic and foreign-invested enterprises, which will be proposed for government approval, after the increase in 2009.

A MoLISA source said that the ministry was considering a 15-20 per cent increase on the current minimum salaries based on the nation’s gross domestic product (GDP) growth and inflation. However, the government will decide which increases are acceptable for the current economic situation.

There are four levels of minimum wage, depending on whether a worker is in a Vietnamese or an FDI employer, and where the worker’s job is in four “Minimum Wage Regions.”

The first zone covers Hanoi and Ho Chi Minh cities, while the second zone accounts for the suburban districts of Hanoi, Ho Chi Minh City and Haiphong, Halong, Danang, Bien Hoa city, Vung Tau city and Binh Duong province’s Thu Dau Mot town, Thuan An, Di An, Ben Cat and Tan Uyen districts.

The third zone includes Bac Ninh, Bac Giang, Hung Yen, Hai Duong, Mong Cai, Quang Ninh province’s Uong Bi and Cam Pha, Lam Dong province’s Dalat and Bao Loc, Khanh Hoa province’s Nha Trang and Cam Ranh.

The plan, which also approved the introduction of common minimum salaries for state-run, domestic and foreign- invested enterprises in 2012, targeted an average rise of 20-38 per cent increase per year in state-run and domestic private workers’ minimum salaries and 13-15 per cent for those at foreign-invested enterprises.

Read more …

Pay Rise Shock, Vietnam Investment Review, July 14, 2009

Decree No. 111/2008/ND-CP, 10 Oct 2008, Minimum wages for in FDI Enterprises, etc. (VN)

Minimum Wage Regions I-IV Quy định dang mục các địa bàn áp dụng mức lương tối thiểu vùng

Summary of Increases of 8 Minimum Wage Levels in 2009 – by VN or FDI and by Region (I-IV)