Aug 27, 2012

Vietnam - Minimum wage increase may be postponed

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VietNamNet Bridge – The minimum wage is scheduled for rising from January 1, 2013, but the change will be delayed from March to June 2013 if local businesses still faced difficulties in the second half of 2012.

The Ministry of Labor, War Invalids and Social Affairs recently held a seminar on raising minimum wage in 2013.

Ms. Nguyen Hong Ha, Vice director of the HCM City branch of the Vietnam Chamber of Commerce and Industry (VCCI), said most enterprises agreed with the increase of minimum wage. However, they said that the Government should make official announcement in September 2012 and the change should begin from March 2013.

Ha said so far this year, more than 30,000 companies have stopped operating or went bankrupt. Local businesses are facing a lot of difficulties.

Mr. Mai Duc Chinh, Vice Chair of the Vietnam Confederation of Labor, said the increase of minimum wage will only make the increase of employers’ pay for social insurance for manual workers. Thus, businesses’ cost will rise.

Ms. Nguyen Thi Lan Huong, Director of the Institute for Social and Labor Sciences, said that the institute has not calculated how much cost that enterprises will have to pay for the increase of minimum wage.

According to MoLISA, the rise of minimum wage will be announced by the government in October 2012 and will be implemented from January 1 2013. However, it may be delayed to March or June 2013 if difficulties of local businesses are not solved in the second half of 2012.

Compiled by S. Tung


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