The government has decided to increase maximum wages for labor employed by domestic and foreign enterprises to help them overcome difficulties during high inflation times.
Workers at a garment company. The government has decided to increase maximum wages for labour employed by domestic and foreign enterprises.
The new wages are expected to take effect from October this year.
The decision was made at the regular monthly meetings of the government in Hanoi on June 30 and July 1. The meetings reviewed the country’s socioeconomic performance in June and the first half of the year, the implementation of the government Resolution 11 and discuss plans for the second half of the year.
Accordingly, the new monthly minimum wages for laborers working in domestic and foreign enterprises will be VND1.9 million (US$95), VND1.73 million, VND1.55 million and VND1.4 million in regions 1, 2, 3 and 4 respectively.
This is the first time minimum wages for laborers working in domestic and foreign enterprises is being integrated.
At the meetings, the government also passed tax plans, aimed to help businesses overcome economic difficulties and promote production.
The government has approved extending its deadline for corporate income tax payments to certain small and medium-sized enterprises and some other businesses like garment and footwear enterprises for 12 months.
A 30 percent tax reduction was approved for enterprises that qualify for extension.
Government also agreed to cut value added tax by 50 percent from personal income tax of individuals and guesthouse owners.
Do Hoang Quan, Deputy Minister of Finance said the government has decided to exempt tax for personal securities transfers and individuals with income of VND9 million per month.
Nguyen Xuan Phuc, Chairman of the Office said that total tax reduction and exemption in 2011 would reach up to VND20 trillion ($1 billion).
At the meetings, a representative of the Ministry of Industry and Trade said that up to now they have not received any proposal on electricity prices. However, as Vietnam Electricity Group is facing financial difficulties it is considering increasing electricity prices.