Saturday, December 3 2016

VietNamNews

Sides agree on 7.3% raise of minimum wage

Update: August, 03/2016 - 11:25
The National Wage Council (NWC) yesterday managed to nail down a 7.3 per cent increase to the minimum wage in 2017. — Photo nld.com.vn

HÀ NỘI — The National Wage Council (NWC) yesterday managed to nail down a 7.3 per cent increase to the minimum wage in 2017. 

The surprising consensus reached at its second meeting this year came amid doubts that the NWC could ever pull off a final figure as its members kept proposing vastly different increase rates at the first meeting late last month.

An average of 7.3 per cent raise in the minimum wage would equal an extra of VNĐ180,000 to VND250,000 (US$8-11) a month for employees in the private sector.

The exact increase, however, would depend on the specific rate applied to the areas where the employees work, with those in Region I benefitting from the highest wage surge, from VNĐ3.5 million to VNĐ3.75 million a month.

Region I includes big districts and towns in Hà Nội, Hải Phòng, HCM City, Đồng Nai, Bình Dương and Bà Rịa-Vũng Tàu.

The increased amount in Region II is VNĐ220,000 and decrementally less by VNĐ20,000 for other regions.

The 7.3 per cent raise is large compared to the initial figure of  4.62 per cent proposed by the representative of the employers, the Vietnam Chamber of Commerce and Industry (VCCI).

Vietnam’s General Confederation of Labour, on behalf of the employees, also compromised on its initial demand for an 11.1 per cent hike.

The NWC will submit its proposal to Prime Minister Nguyễn Xuân Phúc for approval. The wage hikes will be applied on January 1, 2017 if it is signed into effect. – VNS

 

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