Common minimum salary to increase from 1 May 2011
23:44 07/04/2011
On 4 April 2011 the Government issued Decree No 22/2011/ND-CP increasing the minimum monthly salary from VND 730,000 (US$4.60) to VND 830,000 ($39.50). The Decree will come into effect from 19 May 2011. However, the new common minimum salary will apply from 1 May 2011.
The wage level would be used as a basis for the calculation of allowances and other subsidies for workers.
Under the decree, State agencies would be able to use 10 per cent of their regular savings for the wage increase. Agencies under the health sector would have to use at least 35 per cent of their revenues after deducting fees for medicine, blood, chemicals and other materials. In addition, they would be able to use 50 per cent of last year's local budget surpluses to pay for the salary increase.
The State budget would ensure additional funding to implement the minimum wage increase in case that ministries, central agencies, provinces and cities lack the necessary funding.
The same day, the Government also issued a decree to regulate that pension, social insurance allowances and monthly allowances would be increased by 13.7 per cent.
The Government issued Decrees No 107/2010/ND-CP and 108/2010/ND-CP to increase the minimum wage for workers in businesses from the beginning of this year./.-ITD