Vietnam to raise minimum wage in October

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Vietnam's minimum wage will be raised again October 1 to between VND1.4-2 million (US$67-96) a month, depending on the regions, said the government in a recent decision.

 

This would be the first time the minimum wage has been raised twice a year, after minimum salaries were increased to VND830,000-1.35 million per month January 1.

 

It is also the first time that the government will set the same minimum wages for both state-owned and foreign businesses.

 

The current minimum wage applied at state-owned businesses in Ho Chi Minh City is VND1.35 million while it is VND1.55 million at foreign businesses.

 

According to the government, the wage increase will be enacted two months sooner than originally planned due to increasing prices.

 

The decision suggests that businesses pay their workers higher than the minimum wages, and requires them to pay workers who have finished vocational training, even training provided by the businesses themselves, at least 7 percent higher than the minimum wage.

 

In early July, officials at a conference organized by the Ministry of Labor, Invalids and Social Affairs said that many businesses in Hanoi industrial zones paid their workers no bonuses.

 

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