Minimum salary increases since July 1

A new minimum wage band which will be up to VND100,000 (US$4.6) more than the current rate per month, will be applied from July 1, 2013, according to the government’s decision No. 66/2013/ND-CP.

This means their salary will be from VND1,050,000 ($50) per month at present to VND1,150,000 ($54.7) a month. The wage is applicable to officers of state-run companies and those working in army forces.

The country now has different wage brackets covering four regional zones, ranked according to the level of socio-economic development in each zone.

Wage scale and other allowances set forth by enterprises should be based on the minimum wage, according to the decree. In addition, operational expenditure and fringe benefits will be calculated on minimum salary also. Salary of each employees is different on the basis  of their grade, job title, seniority and rank.

The Ministry of Home Affairs’ calculation, total spending for this increase of minimum salary will be VND21,7 trillion. The spending is planned in budget expenditure plan of wage reform of 2013 .

By Phan Thao – Translated by Uyen Phuong

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