Vietnam raises minimum wage in early 2015

The Government has issued a new decree to raise the minimum wages by VND250,000 – VND400,000 ($11.8-$18.9) per month for laborers in all four of the country’s wage zones. All laborers are happy with the new wage.

As per the new decree taking effect on January 1, 2015, the new monthly minimum wages will be VND3.1 million ($146.3) for Zone 1; D 2.75 million ($129.7) for Zone 2; ND2.4 million ($113.2) for Zone 3; and VND2.15 million ($101.4) for Zone 4. Zone 1 covers urban Hanoi and Ho Chi Minh City; Zone 2 is applicable to rural Hanoi and Ho Chi Minh City along with urban Can Tho City, Da Nang City and Hai Phong City; Zone 3 comprises provincial cities and the districts of Bac Ninh Province, Bac Giang Province, Hai Duong Province, and Vinh Phuc Province; and Zone 4 consists of the remaining localities.

The Department of Labor, Invalids and Social Affairs and the Labor Union in Ho Chi Minh City enhance checks on implementation of the new decree in enterprises. Over 19,000 workers of Freetrend Company in Linh Trung Processing Zone in HCMC’s Thu Duc District are very happy at the news of increased salaries.

Huynh Dai Tri, chairman of Labor Union of Cholimex Company in Vinh Loc Industrial Parks in Binh Chanh District said that the new wage increase will greatly influence to its products’ prices and the company’s profit, accordingly hoping that workers will try their best to improve labor efficiency. In addition to increased wage, the company also maintain bonuses and housing support.

Nguyen Tat Nam, head of the Department of Labor, Invalids and Social Affairs’ Labor, Salaries and Wages division, said that company leaders are forbidden to cut bonuses and allowances though salaries are increased. Skilled workers’ salary must be 7 percent higher  than the minimum wage.

The municipal Department of Labor, Invalids and Social Affairs ordered the management board of industrial and processing zones to review and check the implementation of the new salary decree to ensure enterprises to strictly conduct the decision.

By Duong Loan – Translated by Uyen Phuong

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