Vietnam to Increase General Minimum Wage Levels from May 1
Apr. 17 – Vietnam has officially increased its general minimum wage levels from VND830,000 per month to VND1.05 million per month effective from May 1, according to Decree No. 31/2012/ND-CP dated April 12, 2012. The new decree solidifies the content of the National Assembly’s Resolution on the State Budget in 2012.
The general minimum wage applies to officials and public servants, the members of the armed forces and employees working in state agencies, armed forces, political and social organizations, and business units of the state or state-owned enterprises.
This common minimum wage is used to calculate the wage in wage scale, payroll, allowance and perform the other modes in accordance with regulations for cadres, civil servants, public employees of the armed force, and employees working for the organizations mentioned above.
Furthermore, this common minimum wage is used to calculate pension for redundant employees according to Decree No. 91/2010/NĐ-CP dated August 20, 2010 stipulating the policies for redundant employees upon the re-arrangement of the state-owned one-member limited liability companies.
This decree takes effect from June 1, 2012 while the provisions mentioned in this decree are entitled from May 1, 2012 and repealed Decree No. 22/2011/ND-CP dated Apr 4, 2011.
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