From January 1st 2016, the minimum wages of Vietnam has been applied. It is 140 dollars every month. The minimum wages is 128 dollars in the year of 2015, so it has increased 9.4%. The minimum wages was discussed and decided by the Labor Committee, which is made up of government, employees, and Labor Constitution totally 28 persons. Finally the minimum wages is decided as 140 dollars.
In order to decide the minimum wages, the Labor Committee obeys the following five principles.
➊ To review the minimum wages one time every year.
➋ To review the minimum wages step-by-step, stably, predict highly.
➌ To do the strategies based on the principle of Win-Win
➍ To decide the minimum wages by vote or obtaining the agreement of all members of Committee.
➎ To employ based on the level of social and economic principles.
The social and economic principles are as follows.
① Social Standards
According to research of the property lines in 2009, the price level has been transferred to the standards of 2016. For the capital, the minimum wages is 125 dollars and for the other cities, it is 86 dollars.
The increasing rate of price level in the past five years is developing from 1.0% to 4.9%. According to IMF, it is 1.1% for 2015 and 1.8% for 2016.
② Economic Standards
The minimum wages is decided by corporations, productivity, profits and abilities of payment. The labor productivity in 2007 is 256 dollars one person every month and it has increased 21.5% from 2013.
【Our Payroll Services in Vietnam】
The different services are applied for different types of companies. The human resource work services can be applied for the corporations that have large number of employees and do not want to make the system of human resources. It is also suitable for the corporations that want to outsource the payroll work in order to reduce the cost.
The management of human resource database is suitable for the corporations want to response the changes or reviews of systems or laws and regulations. In addition, the services of payroll calculation and a yearly tax adjustment can be applied for the corporations that want to cut down the labor cost of calculation department.