Minimum wage increased by October 01 among enterprises

On August 22, Prime Minister Nguyen Tan Dung signed to issued Decree No. 70/2011/ND-CP stipulating minimum regional wage to be paid to employees working for enterprises cooperatives, plantations, households, individuals and organizations. The applicable minimum wage will be effective this October 01 to the end of December 31, 2012. The PM also encouraged enterprises to pay their employees higher than what had been ruled. Binh Duong Newspaper’s reporters interviewed Mr. Nguyen Phung Trung, Deputy Director of Department of Labor, Invalids and Social Affairs (DOLISA).

Reporter: How will the minimum wage be applied incordance to regions?

Mr. Nguyen Phung Trung: Pursuant to Decree No. 70/2011/ND-CP the minimum wage will be applicable from October 01 to the end of December 31, 2012 in details as follows:

Wage increase is within employees’ expectation

- At VND 2,000,000 a month, applicable to enterprises operating in Region I.

- At VND 1,780,000 a month, applicable to enterprises operating in Region II.

- At VND 1,550,000 a month, applicable to enterprises operating in Region III.

- At VND 1,400,000 a month, applicable to enterprises operating in Region IV.

Article 1 of Prime Minister’s Decree No. 70/2011/ND-CP dated August 22, 2011 stipulates regional minimum wages to companies, cooperatives, plantations, households, individuals, and organizations including:

- Enterprises incorporated, organized, and being under operation in accordance with Law on Enterprise (including FDI enterprises)

- Cooperatives, association of cooperatives, groups, plantations, households, individuals, and other organizations of Vietnam that hire employees.

- Foreign organizations, international organization, and foreign individuals in Vietnam that hire employees (excluding international charters in which Socialist Republic of Vietnam is a member with regulations otherwise required).

Reporter: When the regional minimum wages change, how will other types of wages be identified?

Mr. Nguyen Phung Trung: The mentioned payment methods are only applicable to simpliest work in normal working conditions in enterprises while enterprises have their own planned payrolls registered to provincial authority or management authorities of industrial parks. If enterprises have their own tier payrolls, the amounts will be adjusted accordingly to new changes. All those payments will be negotiable with employees in accordance with market prices and daily needs.

Reporter: How will the regions be applied in Binh Duong Province from and on October 01?

Mr. Nguyen Phung Trung: Minimum wages are understood as floor rates as agreed by employers and employees. For skillful employees, the payments must be 7% higher than the minimum wages ruled in their regions. In Binh Duong Province, Region I includes Di An, Thuan An, Thu Dau Mot, Ben Cat, and Tan Uyen, Region II includes Dau Tieng and Phu Giao.

Reporter: Thank you!

Interviewed by Van Son – Translated by Vi Bao

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