Civil servants members of the armed forces and socio-political organisations staff will enjoy an increase of 9.5 percent to their monthly minimum wage from July 1.

According to a new government decree issued on July 1, the wage would rise by 100.000 VND (4.076 USD) from the previous 1.050.000 VND (50 USD).

The decree stated the adjustment was based on the budget’s capacity, consumer price index and the country’s economic growth.

This is the fifth minimum wage increase in the past five years. In 2009, it was 650.000 VND (30.9 USD) and in 2010, it climbed to 730.000 VND (34.7 USD). In May 2011, the salary increased to 830.000 VND (39.5 USD), while a year later it rose 26.5 percent to 1.050.000 VND.

The increase will put more pressure on the social suffered fund, which already suffered a severe imbalance between collection and spending, Deputy Minister for Labour, War Invalids and Social Affairs Pham Minh Huan told Dau Tu (Investment) newspaper.

Statistics showed the fund’s collection rate rose 18 percent between 2011 and 2012, while spending increased by 28 percent.

Huan said that currently only 20 percent of the labour force pay social insurance, while the ratio of people paying social insurance per pensioner has declined from 217:1 in 1996 to the current 10:1.-VNA