HANOI, Nov 1, 2012. The Government has committed to raise the state sector minimum wage by VND100,000 instead of VND250,000 as scheduled in July 2013, said Minister of Finance Vuong Dinh Hue at a session of the National Assembly (NA) meeting on Wednesday.
Thus, the state sector minimum wage will be increased from the current VND1.05 million/month to VND1.15 million, instead of VND1.3 million as originally planned.
The effective date would be from July 1 instead of May 1 as planned earlier.
(VNS)Wages will rise under a revised Labour Code. Bui Sy Loi, vice-chairman of the National Assembly Committee on Social Affairs, told Thoi bao Kinh te Viet Nam (Vietnam Economics Times) how living standards will improve.
The revised Labour Code will take effect next May, but what are your thoughts on the existing minimum wage?
I have to say with the existing minimum wage, a worker can only afford to cover 60 per cent of their daily expenses. Despite the meagre wage, workers still have to pay part of their income to cover social insurance. If such a system continues, sooner or later our social security system will go bankrupt. That’s why it is high time for us to raise the miminum wage and to dispel the myth that anything above the “nominative” salary is a “bonus”.
Under the revised Labour Code, the minimum wage earner will be able to cover the daily living requirements of themselves and their family members.
Oct 29, 2012. The Government is likely to delay its planned increase of the minimum wage next May due to shrinking State budget revenues.
Despite planning to increase the minimum wage from VND1.05 million (US$50.5) per month to VND1.3 million ($62.5) in May next year, deputies at a National Assembly meeting last week proposed delaying the increase.
The move will affect seven million people on the State payroll, as well as retired people.
HCMC, Oct 7, 2012. Wage hikes are higher than inflation in 2012, contrary to the situation last year, according to a survey conducted by the human resource service provider Mercer and its representative in Vietnam, Talentnet Corporation.
Hoa Nguyen, head of Mercer remuneration surveys and HR consulting services at Talentnet, said the average salary increase this year is over 13%, higher than the inflation forecast at 9.5%.
In particular, multinational companies increased their wages by 13%, while the average pay hike at local firms is 13.3%, says the 2012 Mercer Total Remuneration Survey.
VIR, Aug 27 – Sep 2, 2012. While some enterprises are unhappy about the minimum wage hike proposal, Deputy Minister of Labour, Invalids and Social Affairs Pham Minh Huan says his ministry (MoLISA) is determined to raise salaries to improve workers’ living standards.
Enterprises said raising salaries now, under MoLISA’s increased minimum wage proposal to take effect from January 1, 2013, will make them go bankrupt. Is that true?
“Raising salaries as planned will mean by 2015, the minimum wage will meet the employees’ minimum living standards. Currently, the minimum wage just meets about 60-65 per cent of a need of the minimum living standards.
“We understand enterprises’ difficulties and there are two proposed options to increase minimum wages. The lower option aims to share difficulties and ease burdens with businesses in the context of crisis. The proposed hike was calculated based on consumer price index (CPI), wage and payment levels, as well as enterprises’ financial abilities.”
CHICAGO, May 5, 2011—Within the next five years, the United States is expected to experience a manufacturing renaissance as the wage gap with China shrinks and certain U.S. states become some of the cheapest locations for manufacturing in the developed world, according to a new analysis by The Boston Consulting Group (BCG).
With Chinese wages rising at about 17 percent per year and the value of the yuan continuing to increase, the gap between U.S. and Chinese wages is narrowing rapidly. Meanwhile, flexible work rules and a host of government incentives are making many states, including Mississippi, South Carolina, and Alabama, increasingly competitive as low-cost bases for supplying the U.S. market.
“All over China, wages are climbing at 15 to 20 percent a year because of the supply-and-demand imbalance for skilled labor,” said Harold L. Sirkin, a BCG senior partner. “We expect net labor costs for manufacturing in China and the U.S. to converge by around 2015. As a result of the changing economics, you’re going to see a lot more products ‘Made in the USA’ in the next five years.”