Nov 25, 2011

Vietnam - Salary of senior employees in Vietnam is higher hundred times than normal ones: MOLISA report



Ministry of Labour, Invalid and Social Affairs (MOLISA) has released the general report on salary in production and business, showing that the difference of salaries has widened among enterprises, the Vietnam Economic Times reported.

Salary and income of the employees generally increased slowly through years, even in some cases it decreased whereas many firms seemed to be generous in paying salaries to some senior, managerial, and foreign employees.

In details, few companies, joint venture and joint stock banks are willing to pay huge salary of 100-300 million dong per month to leaders. A foreign director managing a 5-star hotel gets an impressive salary of $7,000-10,000 a month; lead of air crew receives $15,000 per month, foreign petroleum expert was paid monthly salary in the range of $13,000-15,000.

Meanwhile, average wage of employees in these companies ranges between 5 and 7 million dong per month, service staffs got 2-3 million dong/month on average.

The MOLISA report also indicated that salary scheme for state companies has not been matched to the market principle. Salary management criteria is still attached with the state budgeting collection, labour profit and productivity have not been able to distinguish kinds of enterprises (based on advantages and disadvantages).

The fact is that the employers with big advantages usually tend to push up salaries by 2-3 times compared with average levels, making a bigger gap.

The report was compiled with over 37 parent companies of “special-class” economic groups and corporations. Accordingly, salary of the advantageous enterprises reached 8.14 million dong/month on average in 2010, higher 3.35 times than disadvantaged firms.

Employee wage of banking and financial organizations was 10.5 million dong/month, higher 4.32 times than disadvantaged firms.

An official from MOLISA’s salary department said that the salary management regime was built based on market, enterprises are allowed to be active in determining salary costs.

However, the gap of salaries among enterprises remains very large, making the relation between salary and income of the labour market distorted.

VietBiz24



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