The Ministry of Finance plans to raise the minimum wage from the present VND650,000 to VND730,000 (US$40.50) a month in May next year,

The Deputy PM called on the Ministry of Labour, Invalids and Social Affairs to work with the finance ministry on a plan for adjusting wages and subsidies. Hung said he hoped the plan could be ready to be submitted to the Government for approval by the beginning of next year. 

Under the plan, salaries for employees at domestic enterprises and enterprises with foreign direct investment will be adjusted from the beginning of May next year. Retired people and people who contributed to the revolution will also receive increased pensions and subsidies from May. 

Hung also asked the Ministry of Home Affairs to complete plans on supplying subsidies to employees in remote areas and draft policies to attract students to work in remote areas.

These two tasks should be completed and submitted to the Government in September.

“The minimum wage increase is already outlined in a wage reform project for the 2008-12 period,” said Nguyen Thi Huong Giang, manager of the labour and salary division under the Ha Noi Department of Home Affairs.

“The salary and subsidy rises are to support labourers and to protect the balance between prices, salaries and the amount of money in circulation,” Giang said.

In May 2009, the Government increased the minimum wage from VND540,000 ($30) to VND650,000 ($36). The wage was raised to VND540,000 from VND450,000 ($25) in the beginning of 2008.

  VietNamNet/Viet Nam News