From and on January 01, 2011, minimum salary of laborers working for domestic and FDI enterprises will increase by VND 100,000-300,000 a month. The increase is thanks to issuance of two decrees No. 107 and No. 108 both stipulating on minimum wage system. Binh Duong Newspaper’s reporter interviewed Mr. Nguyen Phung Trung – Vice Director of Labor Invalids and Social Affairs Department on this increase.
- How will regional minimum salary is regulated according to localities of the province?
- Mr. Nguyen Phung Trung: from January 01, 2011 to June 30, 2011 minimum wage system is applied to Region II and Region II as follows:
+ VND 1,350,000 per month for enterprises operating in Thu Dau Mot, Thuan An, Di An, Ben Cat, and Tan Uyen.
+ VND 1,170,000 per month for enterprises operating in Phu Giao and Dau Tieng.
As for Region I and Region II (apply from July 01, 2011):
+ VND 1,550,000 per month for enterprises operating in Thu Dau Mot, Thuan An, Di An, Ben Cat, and Tan Uyen.
+ VND 1,350,000 per month for enterprises operating in Phu Giao and Dau Tieng.
- How regional minimum salary is applied?
- Mr. Nguyen Phung Trung: minimum salary is a basis for payroll and allowances in labor contracts as well as other policies built up and issued by enterprises according to labor laws. The regulations are as follows:
+ Payable minimum salary to trained laborers must be at least 7% higher than regional minimum salary.
+ Salary of hazardous jobs must be at least 5% higher than common jobs.
+ First tier salary in the payroll must be higher than regional minimum salary ruled by the State.
+ Enterprises are encouraged to implement its own minimum salary which is higher than regional minimum salary.
+ Employees must not reduce or eliminate policies brought up by labor laws upon implementing Decree No. 107/2010/ND-CP of the government. Bonuses are according to labor contracts, collective labor contracts or enterprises’ own regulations.
+ Negotiated salary in labor contracts or in payroll built by enterprises is up to employees and employers or representative Labor Union according to baseline of labor payments in the market and daily expenses to balance payments for newly recruited and experienced workers.
- How will regional minimum wage system be adjusted upon State’s adjustment of the same? - Mr. Nguyen Phung Trung: salary payments from enterprises for simplest work in lower working conditions than regions stipulated must be adjusted to be the same with the government’s regulations. Negotiated salary payments are adjusted in conformity with the market and daily expenses by must have consents of employees and employers.
- What will DOLISA guide enterprises in implementing bonuses and allowances for Tet holiday to their employees?
- Mr. Nguyen Phung Trung: in November 2010, DOLISA has dispatched a document to enterprises to stipulate on minimum wage system and bonuses and allowances to employees. In comparing with 2009, this year’s bonuses and allowances are more delightful with 40 enterprises reporting of one-month bonuses to their employees. Some enterprises even announced plans for traditional games with lucky monies to their employees while DOLISA keeps inspecting and reminding enterprises to observe the regulations.
- Thank you!
Interviewed by Van Son – Translated by Vi Bao
