Social Affairs
Minimum wage proposed to increase from 350,000-550,000 VND
Vice President of the Vietnam General Confederation of Labour Mai Duc Chinh has submitted to the National Salary Council plans to increase the minimum wage by 16-17% in 2016. According to the plan, each minimum wage level for all four of the country`s wage zones will increase from 350,000 VND to 550,000 VND.
The proposed monthly minimum wages are 3.65 million VND for zone 1, a 550,000 VND increase; 3.2 million VND for zone 2; 2.8 million VND for zone 3; and 2.5 million VND for zone 4.
Zone 1 covers urban Hanoi and HCM City; zone 2 covers rural Hanoi and HCM City along with urban Can Tho, Da Nang and Hai Phong cities; zone 3 applies to provincial cities and the districts of Bac Ninh province, Bac Giang, Hai Duong, and Vinh Phuc provinces; and zone 4 includes the remaining localities.
Zone 1 covers urban Hanoi and HCM City; zone 2 covers rural Hanoi and HCM City along with urban Can Tho, Da Nang and Hai Phong cities; zone 3 applies to provincial cities and the districts of Bac Ninh province, Bac Giang, Hai Duong, and Vinh Phuc provinces; and zone 4 includes the remaining localities.
The salary hike is expected to meet only 86 to 88% of minimum acceptable living conditions.
Vice President Chinh said that in order to put forth the increase proposal, Vietnam General Confederation of Labour performed studies and based on three economic forecasts, including a 5% increase in the Consumer Price Index, 6.5% economic growth and 3-3.5% rise in social labour productivity.
