Rising Base Salary in State-owned Firms

As of May 1, 2010, workers at state-owned companies and limited liability companies where the state holds 100 % of the chartered capital will have a higher base wage, rising from VND650,000 to VND730,000 per month.

According to Decree 28, issued by the Prime Minister on March 25, a new university graduate will be paid 1.7 million dong (US$95) a month.

This content is defined in the Circular No. 06/2010/TT-BLDTBXH dated April 7, 2010 by the Ministry of Labour, Invalids and Social Affairs. Basing on the minimum wage and wage coefficients stipulated in the Decree No. 205/2004/ND-CP and the Decree 204/2004/ND-CP dated December 14, 2004 of the Government, companies will recalculate salary, allowances, social insurance, unemployment insurance, health insurance, layoff payment; holiday bonus; annual leave and other entitlements under the Labour Code.

The minimum wage is also applied to redundant workers who sign employment termination contracts.