Vietnam to raise minimum wage by 13 percent in 2016

Thanh Nien News

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The minimum wage will be raised to US$107-156 depending on regions. File photo The minimum wage will be raised to US$107-156 depending on regions. File photo


The government has decided to raise the minium wage next year by up to 13 percent, depsite calls for a higher increase from labor unions. 
Starting January the monthly minimum wage, which is used by businesses to calculate salaries for their workers, will be between VND2.4 million and VND3.5 million (US$107-156), depending on regions. The amount is said to be able to help workers cover 80 percent of their basic demands.
The National Wage Council, which comprises 15 members representing the national labor force, employers and the labor ministry, proposed the increase in September, after labor unions and business associations failed to reach an agreement following months of negotiations.
The Vietnam General Confederation of Labor demanded a 16.8 percent bump to help workers cover 89 percent of their basic needs. 
But the Vietnam Chamber of Commerce and Industry, which represents thousands of employers in the country, only agreed to a 10 percent raise.
The labor unions last month made another statement, asking the government to increase the wage by 14.4 percent, which would almost match the rate seen earlier this year.
They pointed out that many workers across the country are still struggling to make ends meet even though they work very hard. 
Businesses however have warned that a big wage bump will threaten profitability and eventually lead to job cuts.

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