Increasing wage rates abroad without comparable increasing productivity là gì năm 2024
Background Despite significant investment and global improvements in neonatal mortality rates over the past three decades, neonatal mortality in Zimbabwe, like in other sub-Saharan countries, has continued to rise. Ensuring access to institutional delivery is an important factor in improving both neonatal and maternal outcomes. MethodsThis study uses data from the Sanitation Hygiene Infant Nutrition Efficacy (SHINE) trial, a cluster-randomized community-based trial, to examine the risk factors, birth practices and infant outcomes among women having institutional or non-institutional deliveries in rural Zimbabwe. Results 11.9% (n=536) fetuses in the study were delivered by 529 mothers outside a health institution. These women were more likely to have a lower socioeconomic status than those who delivered in a health institution. Additionally, hygiene practices were poorer and interventions to minimise neonatal hypothermia less commonly utilised outside of health institutions. Infants ... Show
The KOF Globalisation Index measures the economic, social and political dimensions of globalisation. Globalisation in these fields has been on the rise since the 1970s, receiving a particular boost after the end of the Cold War. Is Globalisation at its end?There are debates, if globalisation is at its end. In this video, KOF experts assess the situation. NewsKOF Globalisation Index: degree of globalisation still below pre-pandemic levelsGlobalisation increased moderately in 2021. However, it has not fully recovered from the effects of the COVID-19 pandemic and remains below its 2019 level. The most globalised country is Switzerland, followed by Belgium and the Netherlands. While economic globalisation is showing signs of recovery, social globalisation is characterised by ongoing restrictions owing to the pandemic. Vietnam’s business environment, free trade costs, and its ideal location as a China plus one destination make it favorable among foreign investors looking to relocate or diversify their operations. However, as Vietnam’s economy continues to grow, increasing wages will be an unavoidable feature of doing business in the country and is increasingly important for companies to understand how to navigate. Vietnam is set to implement a 6 percent increase in the minimum wage starting from July 2024, following a unanimous decision by the National Wage Council. This adjustment represents a compromise between the 6.48 to 7.3 percent requested by the Vietnam General Confederation of Labor and the 4.5 to 5 percent suggested by the Vietnam Chamber of Commerce and Industry. The impending hike comes after a two-year hiatus in minimum wage adjustments despite rising inflation rates, which may necessitate further increases shortly. What are the minimum wage rates in Vietnam?There are two kinds of minimum wages in Vietnam. The first type is the common minimum wage of VND 1,800,000 (US$76.6) which is used to calculate salaries for employees in state-owned organizations and enterprises, as well as to calculate the social contribution for all enterprises (i.e., the maximum social contribution is 20 times the common minimum wage). The second type of minimum wage is the Regional Minimum Wage used for employees in all non-state enterprises based on zones as defined by the government. Current (2022) Change (6%) New (2024) Region VND US$ VND US$ VND US$ 1 4,680,000 192.33 280,800 11.54 4,960,800 203.87 2 4,160,000 170.96 249,600 10.26 4,409,600 181.22 3 3,640,000 149.59 218,400 8.98 3,858,400 158.57 4 3,250,000 133.56 195,000 8.01 3,445,000 141.58 In addition, the labor code also ensures minimum hourly wage rates for the relevant regions. These are:
Wages for employees who are paid daily or on a weekly basis must not be lower than the minimum wage when converted to monthly or hourly rates. For Vietnamese employees who work in foreign companies in Vietnam, compensation is determined through negotiations between the two parties. However, the compensation should be no lower than the minimum monthly salary rates as stipulated by the government. Who is eligible?The wage increase applies to employees who work under labor contracts under the labor code, including businesses, organizations, cooperatives, households, and individuals who hire employees on labor contracts. List of regional administrative units in VietnamRegion I Region I
Region II Region II
Region III Region III
Region IV Region IVRegion IV includes the remaining subregions How are minimum wage rates applied?All contracts must use the minimum wage rates as the lowest amount of compensation for any commercial arrangement between an employer and an employee. Companies should ensure that the correct wage rate is applied, especially in certain special circumstances, including:
Salary componentsIn general, an employee’s typical monthly salary package includes their gross salary and mandatory insurance contributions. Personal income taxes (PIT) will be levied on the balance after mandatory insurance contributions have been deducted. In some cases, the gross salary may also include overtime pay, allowances, and bonuses, as well as additional benefits. Further, Vietnamese employees must receive compensation in Vietnamese Dong, even if they work for foreign companies. Foreign employers may base salary rates in either Vietnamese Dong or US Dollars, but salaries that are based in US Dollars must be converted into Vietnamese Dong. However, if the company bases the salary rate on US dollars, then the compulsory social insurance, personal income tax, and trade union payment must be converted into Vietnam Dong based on the Vietnamese government's foreign exchange rate. Are employees eligible for overtime pay in Vietnam?Employee consent must be obtained if the employer plans overtime work regarding the terms, locations, and overtime work. Employees who work extra hours are also paid for those extra hours based on their current hourly wages, as outlined above. In cases where an employee works overtime hours at night, they are paid extra according to the applicable regulations. Further, employees who are given time off in compensation for working extra hours should be paid the difference between their wages during normal working hours and overtime work. Finally, employees who work night shifts should be paid at least 30 percent higher than normal. Salaries paid to Vietnamese staff working for foreign companies must be denominated in Vietnamese Dong. Foreign employers may base salary rates in either Vietnamese Dong or US Dollars, but salaries that are based in US Dollars must be converted into Vietnamese Dong. In general, an employee’s typical monthly salary package includes their gross salary and mandatory insurance contributions. Personal income taxes (PIT) will be levied on the balance after mandatory insurance contributions have been deducted. Overtime compensationIf a company triggers overtime, they will be obligated to compensate employees beyond the wages that are outlined in their contract. This is applicable to all employees regardless of the wages that are offered. The following are the percentages in excess of the standard that are to be applied in the event that certain work-related thresholds are crossed. There are limitations on the number of overtime hours an employee is allowed to work. As per the labor code, overtime hours cannot exceed 40 hours per month. The code also supplements cases where employers are permitted to organize overtime work for up to 300 hours per year; these include manufacturing and exporting electrical and electronic products as well as work requiring high technical qualifications. If the employer and employee agree on an overtime deal, employers are permitted to assign their employees to work overtime for over 200 hours but not exceeding 300 hours per year, except in the following cases:
Employers that are permitted to assign their employees to work overtime for up to 300 hours per year may assign their employees to work overtime for more than 40 hours but not exceeding 60 hours per month if this is agreed upon by both the employer and the employees. In cases where an employee works extra hours at night, they are paid extra in accordance with the applicable regulations. Further, employees who are given time off in compensation for working extra hours will need to be paid the difference between their wages during normal working hours and overtime work. Finally, employees who work night shifts should be paid at least 30 percent higher than normal. There are special situations which may trigger other regulations within the code for overtime:
Performance and earnings-based bonuses for employeesBonuses are given to employees based on company earnings and performance and as a way of boosting company morale and productivity. There are various kinds of bonuses that a company may grant its employees throughout the year. All salaries and bonuses are subject to PIT in Vietnam. 13th-month salaryA 13th month’s salary is usually given as an “annual bonus” by both local and foreign companies in Vietnam to employees who have worked with the company for at least one year. Employees who have worked at a company for less than one year are typically given a bonus that is prorated and based on their actual employment period. Lunar New Year or Tet bonusA special bonus called the “Lunar New Year” bonus (or “Tet Bonus”) is often paid to employees prior to their leaving for the Lunar New Year holiday. The amount of any Tet Bonus will be dependent on both company and employee performance but typically ranges from smaller amounts of money (up to an entire month’s salary) to larger amounts of money (up to an entire year’s salary) depending on the company's progress and goals. Additional bonusesEmployees may also be given smaller bonuses for public holidays or other special days (e.g., International Labor Day or National Day). Senior management and other valued employees may be given bonuses during these days as well, including in the form of share certificates with a vesting period, for which the corresponding stock can be sold only after the employee has worked for the company for a certain amount of time. Allowances and benefitsAn employee may be entitled to several kinds of allowances and monetary or non-monetary benefits designed to retain staff. Some of these benefits are non-taxable, including:
Prefixed lump sum amounts (or “khoan chi” amounts) for telephone calls and services, stationery, uniforms, and per diem allowances are not subject to taxes if the amounts are within the levels set out under the relevant regulations. Foreigners who work in Vietnam are also exempted from PIT on various benefits such as relocation allowances for moving into the country, airfare to their home country, and education fees for their children. Why is wages growth an important driver of inflation?Wages growth is an important driver of inflation because wages are a large share of firms' costs. If wages growth exceeds productivity growth and then firms raise prices to preserve margins and profitability, this can drive inflation higher. Can a worker's wage grow without a cost of Labour?If productivity is growing, then the real wage can grow without an increase in the real cost of labour for business. But a couple of other economic considerations are relevant when assessing the economic impact of changes in the worker’s wage. The first is that productivity also depends on investment. Will wage growth be sustainable?Productivity will need to increase at a pace not seen in almost a decade for the current rates of wage growth to be sustainable, according to new research that casts doubt on the economy’s ability to sustain even modest pay rises. How has inflation impacted nominal wages?While nominal wages growth has picked up, it has not been able to keep pace with the rapid rise in inflation. This has resulted in significant declines in real wages in many economies over the past year. Wages growth is an important driver of inflation because wages are a large share of firms' costs. |