Vietnam set to hike wages starting July 2023

Besides raising the minimum wage in July, pensions and social insurance benefits for retirees will also increase by 12.5% in January 2023.
By: | November 15, 2022

Vietnam will be raising its minimum wage rate from 1.49 million Vietnamese dong (US$60.10) to 1.8 million Vietnamese dong (US$72.60) from July 1 next year.

From January onwards, the pensions and social insurance benefits for people who retired before 1995 will also increase by 12.5%, while spending on social security policies which are linked to the base salary will rise by 20.8%, reported the Quan Doi Nhan Dan (People’s Army Newspaper).

The total expenditure on salary reform, adjustment of pensions, certain allowances, and social security policies is estimated to cost 12.5 trillion Vietnamese dong (over US$504 million dollars) a year. The calculation of base salary applies only to the public sector, with actual salaries being calculated by multiplying the base salary with a coefficient that will be determined by the qualification and experience of individual employees.

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In 2021, Vietnam had an average income per capita of over 4.2 million Vietnamese dong (US$170), according to data from the General Statistics Office, reported Xinhua News.