As of May 1, employees at state-owned companies and limited liability companies where the state holds 100 percent of the chartered capital will have a higher minimum wage, rising from 650,000 dong to 730,000 dong per month. Retirement pensions, social insurance allowances and monthly allowances for retired officials will increase by 12.3 percent. Binh Duong Daily had an interview with the provincial Social Insurance director Bui Huu Phong about the issue.

Laborers at local Social Insurance.

Will those who enjoy the minimum wage and pension rise?

As of May 1, under the scale of the minimum wage adjustment, laborers’ wage working at State agencies, the armed forces, political organizations, socio-political organizations, State-owned companies, and other government bodies as well as companies which are established and organized and operate under the State Enterprise Law, one-member limited liability companies with 100% state-owned charter capital which are organized and operate under the Enterprise Law has gone up by VND80,000 to VND730,000 a month.

Besides, retirement pensions, social insurance allowances and monthly allowances for 5 groups of people will increase by 12.3 percent. Cost for the increase is ensured by the State budget and Social Insurance Fund. In details:

Officials, public servants and laborers; soldiers, policemen and those who enjoy monthly retirement pensions.Commune, ward and township officials enjoy retirement pensions and monthly allowances.Those who enjoy monthly allowances in line with Decision No.91/2000/D-TTg dated Aug.4, 2000 and rubber workers enjoy monthly allowances.Commune, ward and township officials enjoy monthly allowances under the Decision No.130/CP dated June 20, 1975 and Decision No.111-HDBT dated Oct. 13, 1981. Servicemen enjoy monthly allowances according to the Decision No.142/2008/QD-TTg dated Oct 27, 2008.

How will the wage adjustment impact on social insurance, sir?

Social and health insurance premium will also be changed along.

How is the retirement and social pension rise calculated and when is May retirement pension paid?

Monthly social insurance allowances and retirement pensions are adjusted as follows:

Allowance as of May 1, 2010  = allowance of April, 2010 x 1.123    

        VND1,123,000                   = VND1,000,000 x 1.123

The wage level will be conducted in early May, 2010.

Thanks a lot!

Reported by V.Son – Translated by A.C