Minimum wage to be increased in 2016

Good news for workers in Vietnam is expected for next year. The Government has proposed a 5% increase in the wages of state employees who  earn a salary coefficient above 2.34, according the latest report of the National Assembly. The raise is expected to take effect from May 2016. This was stated by Parliament Budget Finance Committee Chair Phung Quoc Hien, in accordance with his report on 2015 budget expenditures and 2016 budget allocation schedule. Many delegates agreed on the proposal while underscoring its role in ensuring labor productivity and employee living standards. Red tape should be mitigated to accelerate this move, as the proposal has been canceled for the past 3 years. The minimum wage of state employees in 2015 was just half of the regional average salary.