Bui Sy Loi, Deputy Chairman of the Social Affairs Committee of the National Assembly, talks with Thoi Bao Kinh Te Vietnam (Vietnam Economic Times) about calculating minimum wages for employees.
Hanoi (VNA) – Bui Sy Loi, Deputy Chairman of the Social Affairs Committee of the National Assembly, talk🥂s with Thoi Bao Kinh Te Vietnam (Vietnam Economic Times) about calculating minimum wages for employees.
* It is difficult to set up a minimum wage that is satisfying to both employers and employees. Employees’ representatives (trade unions) say labour productivity will increase if the minimum wage can provide a minimum living standard to employees. Yet employers argue that labour productivity declines as minimum wages increase. What is your opinion on the issue?
The minimum wage is an effective tool to protect employees, especially vulnerable labourers. The mechanism for minimum wages is based on negotiations between three parties: employees’ representatives (trade unions), employers and the State, with an aim of ensuring mutual benefit. The mechanism was set up by the National Salary Council as per the Labour Code issued in 2012.
However, the minimum wage mechanism was not the only tool to define the salary in the labour market. It is because the real salary of employees varies depending on the skills and capabilities of individual workers.
The real salary has increased by 8 percent annually, faster than the growth of the country’s GDP.
For the last two years, the minimum wage has been increasing rapidly. However, the wage has not met the minimum demand to cover employees’ daily lives.
But we should look at the relationship between an increase in minimum wages and economic growth.
The minimum wage must harmonise several factors, including workers’ daily needs, productivity and business competitiveness.
Therefore, it is necessary to negotiate between employees’ representatives – trade unions - employers and State agencies to define a proper rate increase. The aim is to ensure that businesses have long-term stability and can develop to create more jobs, as well as meet employees’ requirements.
* Some employers say that the minimum demands of daily life are varied, so the minimum wage cannot be uniform. What do you think about this viewpoint?
At present, we have a misunderstanding of minimum wages and minimum living standards.
The minimum wage has to meet the minimum living standard of employees and their families. If the minimum wage is too low, employees do not have enough money to invest or pay for their children’s education.
So, the minimum wage must be adjusted based on socio-economic development. And the labour force should be compensated in accordance with market mechanisms.
Currently, the minimum wage is based on the prices of food only. This does not reflect the real nature of minimum wages.
* How will minimum wages be adjusted to ensure all parties benefit next year?
Vietnam is in the process of carrying out business equitisation. Shifting from State-owned enterprises to stock or private enterprises requires fair salaries among economic sectors.
The Law on Enterprise mandates that all economic sectors have a level playing field and that employees’ minimum salaries must be calculated on the same scale.
As for salary regulation, social and health insurance purchases and other fees are based on salary. At present, all the fees that are paid by employees and employers account for 35.5 percent of the salary. This creates difficulties for both employees and employers.
Therefore, authorised agencies must re-calculate the compulsory payments so as to create favourable conditions for business growth while also ensuring benefits for employees, especially when they retire.
We are implementing a salary mechanism for the annual salary scale issued by the Government. Meanwhile, many other countries define minimum wages hourly, which helps to increase labour productivity and reflects the real nature of salaries in the market economy.
So I think this salary adjustment should be done that way.-VNA
The Ministry of Home Affairs has released a draft decree stipulating that the minimum wage for cadres, civil servants, public employees and those working in the armed forces will go up on May 1, 2016.
Pham Minh Huan, Deputy Minister of Labour, Invalids and Social Affairs and Chairman of the National Wage Council, speaks with Vietnam Plus about workers' salaries this year.
Commercial bank employees received an average monthly wage last year of 13-23 million VND (590-1,045 USD), up 1-4 million VND against 2014, thanks to banks’ better performance.
The monthly base salary for civil servants, public employees and those working in the armed forces has been officially stipulated to go up by 5 percent to 1.21 million VND (nearly 54 USD).
According to Ben Tre authorities, the province will continue to strengthen IUU fishing prevention by enforcing central directives and enhancing public awareness and compliance among local fishing communities.
Trial operations at the new public administrative service centres in Thanh Khe and Ngu Hanh Son wards show that the reception and processing of citizens' documents on the new wards’ data system have been smoothly handled by the staff, enabling quick settlement and facilitating easy access to public services for the people.
The event, the 12th of its kind jointly, was jointly organised by the Vietnamese Embassy in Belgium and Chris Geyskens, Chairwoman of the Belgium chapter of the Hoi An – Vietnam Association for Victims of AO/Dioxin.
The Nguyen Du Lao-Vietnamese bilingual school has positioned itself as a prestigious education establishment, nurturing generations of Vietnamese and Lao students while preserving Vietnamese culture and language as well as strengthening the special bonds between the two countries
For households of people with meritorious service and relatives of fallen soldiers, the province supported the construction and renovation of 2,374 houses, achieving 100% of the set target, 342 newly built and 2,032 renovated.
Held under the theme “Pride and Aspiration”, this year's “Glory to Vietnam” programme aimed to inspire the Vietnamese people's ambition to reach new heights during the era of integration and development.
According to the Central Committee of the Vietnam Red Cross Society (VRC), this year’s campaign provided long-term aid for 3,785 individuals and organisations. Support included houses, clean water systems, school meal facilities, books, and livelihood assistance, with a total value of more than 118 billion VND.
The programmes have brought about positive changes to rural infrastructure, comprehensively improved the material and spiritual lives of farmers, and contributed to Vietnam's economic restructuring, said PM Pham Minh Chinh.
The festival highlighted the contributions and robust development of Vietnam's revolutionary press over the past century while promoting press products and showcasing the creativity of Vietnamese journalists.
The programme on sustainable poverty reduction has achieved its annual targets for reducing the poverty rate as assigned by the National Assembly and the Government. It has fulfilled five specific objectives and five five-year goals, and met nine out of 12 indicators related to addressing basic social service shortages.
UNICEF stands ready to support the Government in implementing this important law and in continuing to invest in teachers as the cornerstone of a resilient, inclusive, and high-quality education system for all children.
PM Pham Minh Chinh highlighted how Vietnam's revolutionary press has continuously evolved and strengthened over the past century, affirming its role as a sharp and vital political, cultural, and ideological weapon serving the Fatherland and the people in the glorious revolutionary cause of the Party.
Vietnamese Consul General in Fukuoka Vu Chi Mai highlighted the growing demand for Vietnamese workers in Kyushu, especially in Fukuoka, Oita, and Saga prefectures. Currently, the region employs about 35,000 Vietnamese manual workers and over 5,000 IT engineers.
In Vietnam’s case, she said, President Ho Chi Minh demonstrated his strategic vision by founding the revolutionary press a century ago. The late leader understood the press's role not only as a means to reflect the country’s realities but also as a powerful tool to strengthen national unity and inspire the resistance wars and national construction process.
In recent interviews granted to the Vietnam News Agency (VNA)'s reporters in Mexico, prominent figures reflected on the press’s legacy and its global influence.
VietnamPlus e-newspaper of the VNA clinched an A prize in the “Outstanding Press Product” category for its immersive 3D multimedia project, “Epic of Reunification,” a groundbreaking blend of storytelling and technology. The VNA won another A prize for its eye-catching exhibition booth.
Today, the press for foreign service has evolved into a distinct, irreplaceable force, bridging Vietnam with the world and portraying a nation that is stable, peace-loving, and fully integrated into the international community.
At a review conference held on June 21, Deputy Minister of Construction Nguyen Van Sinh praised the province’s scientific, coordinated, and flexible approach. He noted that the early completion reflects the strong commitment of local authorities, the business community, philanthropists, and residents in improving housing conditions for disadvantaged groups.
The VNA delegation, led by General Director Vu Viet Trang, actively participated in the event, engaging in both professional and diplomatic activities.
Workers at a garment factory (Photo: VNA)
