A roadmap to adjust the minimum salary was approved by the Government at its regular meeting for August in Hanoi.  

The adjustment was based on the national economic growth which is forecast to increase by eight percent in 2006, the consumer price index in October probably by 7.5 percent and the labour cost by 10 percent.

More than 10 million State employees and 1.8 million people who have retired and enjoyed social insurance subsidies will benefit from the adjustment.

According to Hoang Minh Hao a MoLISA official, with the new adjustment, the State will spend additional VND32,000 billion on employee salaries till the end of 2007.

Meanwhile, at a meeting of the Party Central Committee’s Commission for Cultural and Ideology on September 5, Finance Minister Vu Van Ninh introduced major contents of the draft Law on Personal Income Tax. Accordingly, tax levels will be imposed on those whose monthly income exceeds VND4 million.