Ministry of labour, invalids and social affairs or Molisa just sent to the government the draft decree on minimum wage scheme adjustment for approval. Accordingly, the minimum wage will be adjusted from 350,000 dong a month to 450,000 dong a month commencing on October 1. It is expected the decree will be officially approved on September 15.
The adjustment is apparently based on three basic factors. The economic growth rate is anticipated to reach about 8% this year. It is estimated consumption price index increases some 7% and actual wages would also see an increase of around 10% in the local labour market. In addition, according to a survey conducted with 1,500 businesses in 2005 and 1,000 small-and-medium-scale businesses this year by Molisa, minimum wage currently reaches 475,000-730,000 dong a month in general.
Thus, given this decree, it is estimated some 8.5 million workers in the governmental administrative agencies, state-run sector and private sector will benefit from increased basic wages. The lowest increase is 100,000 dong a month, the medium 234,000 dong a month and the highest 1.3 million dong a month. Also, some 1.8 million pensioners and social welfare recipients will see incomes increasing by 28.6%.