Proposed wage reforms have got businesses thinking.
The draft law on minimum wage is
being penned by the Ministry of Labour, Invalids and Social Affairs (MoLISA)
and slated for completion to submit to the government and the National Assembly
for approval in May.
The draft law has been circulated
to gather comments from state agencies and experts.
According to MoLISA’s Legislation
Department, the law’s major target was to have in place a wage policy based on
market rules and gradually stamp out the low minimum wage scheme.
“The draft law encompasses two
important changes. It is proposed to cover labour relations in the public and
private sectors and more importantly, it separates wages paid to state
employees and to people in the armed force from the minimum wage law,” said
head of MoLISA’s Labour-Wage Department Tong Thi Minh.
Besides, the draft law seeks to
regulate minimum wages per day and hour.
“Separating state employees’
wages from the minimum wage law is a smart move. Only when this regulation gets
the nod, can the wage be adjusted following market rules, not badly affecting
state budget,” Minh said.
International Labour Organization
expert Sangheon Lee assumed it was important to split state budget funded
sector wage from the minimum wage law since most countries have developed a
specific wage policy for the state sector.
Head of Ministry of Home Affairs’
Wage Department Doan Cuong, while advocating wage separation, voiced concerns
over how state employees’ wage be calculated to ensure fairness.
Cuong said state employees also
wanted their wage to be set based on market rules.
“If state sector wage is no set
based on market rules, the ‘brain drain’ may happen more aggressively and
talents would shift to work for private enterprises or foreign entities,” Cuong
argued.
In this respect, former member of
prime minister’s research department Vu Quoc Tuan said while separating wages
of the administrative non-productive sector from the minimum wage law Singapore
and other countries have developed minimum and maximum wage schemes to ensure
state employees have decent incomes with certain accumulations depending on
their specific jobs.
The employees, however, when
working in the state sector should not require equal wage levels like those
applied to the corporate sector since businesses pay wage based on target
profits whereas the state sector was not a service sector, according to Tuan.
Source: VIR
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