Many officials and experts have called on the Government to cut down other expenses so that it can ensure the increase in minimum wage next May as planned. The call was made following the statement by Finance Minister Vuong Dinh Hue that the Government has found it difficult to arrange a financial source to raise the minimum wage from the current VND1.05 million to VND1.3 million (US$62) per month as of May 1, 2013. However, a reduction in State budget revenue has been recorded in recent months and the situation is likely to continue for the rest of this year, and even into 2013. Therefore, the Government cannot arrange a source that will pay for the intended increase in minimum wage, Hue said. Meanwhile, many other officials said that the ministry is responsible for ensuring that the increase is made in accordance with the roadmap. Bui Hong Quang, deputy head of the Law and Policy Office under the Vietnam Labor Confederation, said, “The wage increase must be carried out under the plan that has been approved by the Politburo and the Party Central Executive Committee in order to protect the interest of salary earners. “With the current inflation rate, a wage increase next year is very necessary to help maintain the minimum living conditions of civil servants and workers.” Nguyen Huu Dung, former head of the Social Labor Science Institute, said that while people are suffering hardship in life due to difficulties facing the national economy, it is highly unadvisable to consider a delay in increasing the minimum wage. Dung said the wage increase should be ensured to protect those who live on salary. “If the State budget revenue continues to slow down in 2014, will the minimum wage continue to be delayed? If it is the case, it is unacceptable.” Meanwhile, members of the NA’s Committee for Budget and Finance requested that the Government seek a financial source for the wage increase as planned. At the very least the minimum must be raised partially, for example from VND1.05 million to VND1.15 million. However, under the most difficult circumstances, the wage increase can be delayed to July or September 2013, these members said. “I am sympathetic with the Government in balancing the State budget revenue, but I think the Government should try to seek a source for the increased wage to ease the difficulties facing civil servants and workers,” said Bui Dang Dung, deputy chairman of the NA’s Committee for Finance and Budget. Phung Quoc Hien, chairman of the Committee, said the increase is also an important measure to promote consumer spending, thereby boosting production and trade activities and contributing to an increase in the country’s economic growth. “It is advisable to curb other State budget expenses and to tighten the fight against wastefulness and corruption so that we can create a source to increase the minimum wage,” the Committee said.
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