“Wages is not only a motivation, a lever for employees to work efficiently, but also a mean ensuring their lives. Employees are happy because of the increase of wage”. That is the opinion of Mr. Nguyen Phung Trung, Deputy Director of the Department of Labour - Invalids and Social Affairs (DLISA), regarding regulations on regional minimum wage in 2015. Binh Duong Newspaper had an interview with Mr. Nguyen Phung Trung about this issue:
- Sir, according to Decree 103/2014/ND-CP of the Government, how will the minimum wage in Binh Duong province be applied?
- Decree 103/2014/ND-CP of the Government dated 11-11-2014 prescribed regional minimum wage for employees working in enterprises, cooperatives, cooperative groups, farms, households, individuals, and agencies, organizations hiring employees under labor contracts. In Binh Duong province, according to the Decree, from 1-1-2015 the regional minimum wage will be applied as follow: In region I, a minimum wage of VND3,100,000/month will be applied to enterprises in Thu Dau Mot City, Thuan An town, Di An town, Tan Uyen town, Ben Cat town and Bau Bang district, North Tan Uyen district. In region II, minimum wage of VND2,750,000/month will be applied to companies in Phu Giao district, Dau Tieng district.
- How will this decree be implemented?
- Firstly, provincial DLISA will hold a conference to give training to representatives of over 800 companies, industrial parks’ management, officials of LISA Bureaus at 9 provincial localities, and public security sector. The training will provide specific instructions on the Decree, how to apply to enterprises and units. After training, 9 LISA Bureaus at 9 provincial localities and industrial parks’ management will continue disseminate this Decree among board of directors, Trade Union branches of local companies. Then on 15th January 2015, LISA Bureaus will give reports on the implementation.
- Sir, during the implementation of the Decree, what difficulties may arise?
- During the application of the Decree, Binh Duong province does not encounter many difficulties, because the application of regional minimum wage has done for many years. Enterprises have prepared for this Decree since 2014. Most companies have paid higher salaries than the regional minimum wage.
But there are still a number of small businesses have not increased wages on time, because of difficult economic situation. Some take advantage of higher wages to cut prior allowances of employees.
- How these businesses are handles? In your opinion, what is the solution to remedy this situation?
- DLISA will carry out inspection and give sanction. The Decree stipulates that enterprises are not allowed to cut down allowances of employees while increasing wage. To implement effectively the Decree, Trade Union branches and even employees at companies need to speak for themselves when this regulation is not properly applied.
In addition, we have to enhance negotiation skills of Trade Unions branches that are representative for employees. The regional minimum wage can be considered as the minimum salary level, thus enterprises should pay more for the employee to retain your employees.
- Thank you!
Reported by T.Ly – Translated by Ngoc Huynh
