VietNamNet Bridge – Business owners have been told to increase the workers’ wages in accordance with the roadmap set up by the management agencies. Meanwhile, their wage funds have become scantier in the economic crisis.


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Businesses have to do what the government tells them to do. However, to cope with the new policy, they have been trying to cut down the allowances to keep the total labor cost unchanged.

Nguyen Thuy Hanh, a worker at an import-export company in Hoan Kiem district in Hanoi complained that though her monthly salary has increased, her total income remains unchanged.

According to Hanh, if the Ministry of Labor, War Invalids and Social Affairs (MOLISA) requests enterprises to increase the minimum wages, her enterprise would decide to cut down the monthly allowances. The managers of the company said that in the current economic difficulties, the company needs to fasten its belt by trimming some kinds of expenses.

Hanh said that 3 years ago, she received VND600,000 in total in allowances, which included the allowances for motorbike petrol or for lunch. However, she can receive VND270,000 now, because the allowances have been cut many times after many times of the minimum wage adjustments.

“We have been told that higher salaries would help better our living standards. However, in fact, our income does not change,” she said. “Meanwhile, as we receive higher salaries, we have to pay higher social insurance premiums.”

Workers in industrial zones also said they are not happy with the salary increase. Nguyen Thi Hien, a worker at an electronics enterprise in Khai Quang Industrial Zone in Vinh Phuc province, confirmed that the income does not increase at all despite the minimum wage increase.

In 2011, Hien received VND1.8 million in basic monthly salary and some kinds of allowances, which brought VND3.5 million on average. Now Hien receives over VND2 million, but the income remains the same.

She complained that the company has decided to cut some kinds of allowances. In the past, workers could receive VND10,000 in allowance for a night shift. However, the allowance was cut after the company decided to increase the basic salary. In the past, workers could receive bonuses for their diligence or high productivity, but they cannot now.

“The current laws don’t stipulate how much employers have to pay to workers in allowances, therefore, they can trim many kinds of allowances spontaneously,” Hien complained.

Workers’ wages down, but businessmen still keep complaining

Since 2008, the government has five times raised the minimum wages of state agencies’ officers and employees to VND1.050 million now and six times raised the minimum wages of enterprises’ workers.

A survey of the Vietnam Labor Union in July 2012 showed that the basic salary workers received was VND2.43 million a month, while the actual salary was VND2.86 million. The average total income of workers was VND3.6 million, which included the extra income from night production shifts, bonuses and allowances.

As such, the workers’ salary has been increasing steadily as planned. However, the majority of workers still complain that their income is not big enough to feed their basic needs. Though the salary has increased, the income has not increased at all, while everything gets more and more expensive.

Phung Thi Duyen, a worker in Khai Quang Industrial Zone, said she can earn VND4 million a month, the income level which does not change over the last 3 years.

In fact, Duyen gets some VND200,000 more in comparison with the first months at work. Meanwhile, the rent room alone has increased by VND150,000.

Bao Han