Wage growth in Vietnam highest in world: ILO

According to the Global Wages Report 2012-2013 by the International Labor Organization (ILO), Vietnam has raised wages of workers at a rate higher than the world average rate, regardless of the current economic downturn.

Worldwide, wage levels are far below that of the pre-recession period. Global monthly wages grew by 1.2 percent in 2011, down from 3 percent in 2007 and 2.1 percent in 2010, said ILO Director-General Guy Ryder.

While global trend in wages has grown at a slower pace than labor productivity, the situation in Vietnam is in sharp contrast, stated the ILO Global Wages Report 2012-2013.

Vietnam showed a 26.8 percent annual increase on an average in nominal wages in the period 2006-2010.

Even when the country experienced high inflation, it still had a 12.6 percent per year increase on average nominal wages. However, the actual and nominal wage growth rates in Vietnam have been at least three times higher than the growth rate of labor productivity.

ILO experts also warned on the increasing gender pay gap in Vietnam--nearly 2 percent in the period 2008- 2011.

The government has decided to increase the minimum wage by VND250,000-VND350,000 (US$12-$16.8) per month, effective from January 1, 2013.

Accordingly, minimum wages for Zone 1 will increase from VND2million to VND2,350,000 ($96-$112.8) per month; for Zone 2 from VND1,780,000 to VND2,100,000 (($85.4-$100,8) per month; for Zone 3 from VND1,550,000 to VND1,800,000; and for Zone 4 from VND1.4 million to VND1,650,000 per month.

Zone 1 covers Hanoi, Da Nang, Ho Chi Minh City and Vung Tau and Binh Duong, Quang Ninh and Dong Nai Provinces.

Zone 2 covers Can Tho and Hai Phong Cities and Vinh Phuc, Thai Nguyen, Khanh Hoa, Binh Phuoc, Tay Ninh, Long An, An Giang, and Ca Mau Provinces.

Zone 3 covers Hue and 18 provinces, while Zone 4 covers the remainder of the country.

By P. Van - Translated by Anh Quan

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