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Govt plans to restructure minimum wage scale

Nov '07
Starting from January 1, 2008, the Government of Vietnam has decided to increase the salaries of all workers based on three regulations issued on November 16.

Salaries of workers employed in domestic and foreign-invested companies will also be raised on grounds of regional locations.

Of the three regions, the first includes urban districts of Hanoi and HCM City, the second encompasses suburban districts of Hanoi, HCM City, Hai Phong, Ha Long City, Bien Hoa city, Vung Tau city, Thu Dau Mot town and the districts of Thuan An, Di An, Ben Cat and Tan Uyen. The remaining areas are clubbed in the third region.

Minimum salary for domestic company workers in region 1 will be approximately VND620,000 (US$38) per month, up 38 percent whereas region 2 and 3 will get VND580,000 ($36) and VND540,000 ($33) respectively.

On the other hand, workers in foreign-invested enterprises, will receive around VND1 million ($62) in region 1, VND900,000($56) in region 2 and VND800,000 ($50) in region 3.

It has been clearly stated by the Government that the minimum salary for least skilled worker should be the lowest. However, if the worker is trained or educated, salaries must be at least 7 percent higher.

In the past five years this is the fourth minimum salary adjustment which started at VND210,000 ($13) and now reaches to about VND540,000 ($33) per month. However, for foreign-invested companies this is only the second time the salaries have been increased.

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