Region-based minimum wage proposed to increase 15.1 percent

The National Wage Council (NWC) on August 6 adopted a proposal on a 15.1 percent rise in region-based monthly minimum wage in 2015, which will be submitted to the Prime Minister for approval.
The National Wage Council (NWC) on August 6 adopted a proposal on a15.1 percent rise in region-based monthly minimum wage in 2015, whichwill be submitted to the Prime Minister for approval.

Under the proposal, the new monthly minimum wage levels will beapplied in four different regions in the country as follows – Region I:3.1 million VND (147 USD), Region II: 2.75 million VND (131 USD), RegionIII: 2.42 million VND (115.2 USD), and Region IV: 2.2 million VND(104.7 USD).

Region I covers urban Hanoi and Ho ChiMinh City while Region II includes rural Hanoi and Ho Chi Minh Cityalong with urban Can Tho, Da Nang and Hai Phong. Region III coversBac Ninh, Bac Giang, Hai Duong and Vinh Phuc provinces, and Region IV,the remaining localities.

According to DeputyMinister of Labour, War Invalids and Social Affairs Pham Minh Huan,Chairman of the NWC, during their meeting, representatives of employersand employees agreed to increase the monthly minimum salary for workersand promptly complete necessary procedures to be submitted to the PrimeMinister for approval this October.

The new wage levels, if approved, are expected to be applied on January 1, 2015, he said.

Huan stated that next year, his council will study the minimum wagebased on additional criteria such as consumer price index, workers’living standards, salary differences between unofficial and officialareas and between small- and large-sized enterprises.

Together with minimum wage levels, the council will propose theestablishment of a labour productivity research council which aims toensure workers’ living standards and competition among businesses, hesaid.

After the Government issues a decree on the2015 minimum wage increase, the NWC will work with several enterprisesto monitor the application of the new salary and its impacts, he added.-VNA

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