MINIMUM REGIONAL WAGE HIKE FOR 2020 SET AT 5.5%
Specifically, the minimum wage in Region 1 comprising more developed localities rose by VND240,000 to VND4.42 million per month, while that in Region 2 was hiked by VND210,000. The lowest wages in Regions 3 and 4 picked up by VND180,000 and VND150,000, respectively, according to Nguoi Lao Dong newspaper.
ONE-TIME SOCIAL INSURANCE CASES APPLIED TO FOREIGN WORKERS
According to Government Decree 143/2018/ND-CP issued on October 15, 2018 and put into force on December 1, 2018, providing details on enforcement of compulsory social insurance for foreign workers working in Vietnam under the Law on Social Insurance and the Law on Occupational Safety and Health. There are four cases that foreign workers are entitled to receive one-time social insurance.
NEW REGULATION ON WAGES ISSUED
The Government has issued a decree to update provisions of the Labour Code relating to wages. The newly issued decree, which will take effect from November 1 this year, details regulations for wage scales, payroll and labour productivity norms.
MINIMUM WAGE TO INCREASE 5.3%
An increase in the minimum wage moved a step closer yesterday after the National Wage Council agreed to increase basic salaries. The committee confirmed they will look at a rise of more than 5 per cent compared to last year.
VCCI PROPOSES END TO MINIMUM WAGE HIKES FROM NEXT YEAR
The Vietnam Chamber of Commerce and Industry (VCCI), representing employers in the nation, has suggested keeping region-based minimum wages unchanged from next year as annual minimum wage hikes place a heavy burden on enterprises.
VIETNAM'S MINIMUM WAGES TO INCREASE BY 6.5 PER CENT IN 2018
The minimum wage will be officially increased from January 1, 2018 by an extra VND180,000-230,000 ($8.07-10.13), depending on the region. The government has issued Decree No.141/2017/ND-CP, amending regional minimum wages for workers employed under a labour contract. Accordingly, the increase stands at an average of 6.5 per cent (See chart below).
GARMENT AND TEXTILE ENTERPRISES’ QUALMS OVER NEW WAGE AND SOCIAL INSURANCE POLICIES
The minimum wage increase, coupled with the increase for social insurance and union fees, is putting financial burdens on enterprises operating in labour-intensive sectors, such as the garment and textile sector.
MINIMUM WAGE HIKES SEEN SENDING PRODUCTION COSTS SOARING
The forthcoming spikes in the region-based minimum wages are expected to improve workers' incomes but production costs in labor-intensive industries will certainly pick up.
