Vietnam to raise pension by 8 percent from Jan. 1, 2015

As the National Assembly has approved the plan to increase minimum wage, the State budget will earmark about VND11.1 trillion (US$522 million) for the plan next year.

Accordingly, nearly 5 million wage earners nationwide, belonging to three groups of earners including retirees, people with special contribution to the Vietnamese revolution, and people serving in armied forces, will receive an 8 percent increase with an average of VND240,000.

In a talk with reporters in the sideline of the National Assembly’s session yesterday Chairman of the Finance - Budget Committee Phung Quoc Hien said that as state budget was not enough for all earners in the country so just three groups of  earners would enjoy higher wage.

The government will increase wage for all public workers if the country’s economy is improved, he said. Last month the Government issued a decision to increase the minimum wages in enterprises.

The increase depends on economic and geographic positions. Minimum wages of enterprises' employees in zones 1, 2, 3 and 4 are VND3.1 million (US$146.3); VND2.75 million (US$129.77), VND2.4 million (US$113) and VND2.15 million (US$101.4), respectively.

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 rural dictrists across the country..

By Phan Thao – Translated by Uyen Phuong

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