Following on from the recently announced increase in the VAT rate to 15%, the Government has also approved an increase in the minimum wage from VT170 per hour to VT200 per hour effective 1 January 2018. Employers are advised to review and adjust staff salaries if required. A summary of the impact of the increase is shown below.
| Full-time employee | 40 hours per week | 44 hours per week |
| Old monthly salary (gross): | VT29,467 | VT32,414 |
| New monthly salary (gross): | VT34,667 | VT38,134 |
The change represents a 17.64% wage increase to workers on the minimum wage. Employees earning more than the minimum wage are not affected.
Happy New Year to all workers!
