Vietnam to raise minimum wage by 15 pct

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Minimum pay for corporate workers will range from VND1.9 million to VND2.7 million per month from January 1, 2014. Photo by Trung Hieu

Minimum wages in the corporate sector will rise by around 15 percent next year, 2 percentage points less than the labor ministry's recommendation, according to a new decree from the government.

Starting January 1 companies have been ordered to pay their staff between at least VND1.9 million (US$90) and VND2.7 million ($128) per month, or VND250,000-350,000 higher than the current rates, depending on where they are located.

For skilled workers, salaries will be at least 7 percent above the minimum wage.

Earlier the Vietnam General Confederation of Labor proposed that minimum wages be increased 21-36 percent to meet at least 75 percent of people's basic needs.

But after business associations balked at the proposal, the Ministry of Labor, Invalids and Social Affairs recommended that the government should raise minimum wages by 17 percent.

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