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VCCI PROPOSAL FOR REGIONAL MINIMUM WAGE 2016
In 2014, VCCI and Business Associations have developed a proposal of adjustment regional minimum wages for discussion at meetings of the Council and has achieved initial results. The Government issued Decree No 103/2014/NÄ-CP which came into effect from 1/1/2015 stipulating regional minimum wage levels for all types of enterprises as follows: Region I: 3.100.000 VND/month (increased of 300.000VND); region II: 2.750.000 VND/month (increased of 350.000VND); region III: 2.400.000 VND/month (increased of 350.000VND); region IV: 2.150.000 VND/month (increased of 250.000VND)
The consultation meeting of the Employers group will be held at the end of April 2015 to get common consent on proposal for minimum regional wage in 2016 which will be submitted to National Wages Council. It would be highly appreciated if you could send your inputs/comments as for employers side to the assessment below:
1. Impact of minimum wage policies on businesses in the industry
- Current situation of the average wage costs in the industry:
• In accordance with special regions: region I and region II
• Types of business (public, private and FDI enterprises)
• Forms of payment: by time, by piece rate, by piece work.
• Calculation of wage based on productivity
• Components of income
- The volatility of wage fund in 2014,the impact on wage increase in an enterprise and the whole industry by applying the new policy on social insurance premiums, overtime working, trade union fees 2% …
1.2. Impact on employment:
- Current labor force situation in the industry
- Measures to reduce labors (working hours, wage or allowance reduction… or not reducing labors)
- Fluctuation labor rate in 2014 and in the first quarter 2015
1.3. Impact on business operation in the first quarter in 2015
2. Conclusion and recommendation of the amendment of regional minimum wage in 2016 and the basis for the proposal of 2016 regional minimum wage
- Socio-economic situation (GDP, CPI, inflation ...)
- Business situation
- Unemployment rate
- Living standards
- Other bases
BUREAU FOR EMPLOYERS' ACTIVITIES
Viet Nam Chamber of Commerce and Industry
5th Floor, 9 Dao Duy Anh, Ha Noi, Viet Nam
Tel: 84-4-5742022 ext 345
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