Minimum wages of State employees rose from VND830,000 (US$40) to VND1,050,000 ($50) per month, effective from May 2012, in a move to help them cope with rising inflation.

The new wage level will be applied to salaries in State agencies and enterprises, people’s armed forces and socio-political organisations.

After inflation hit 18 per cent in 2011, the country's major cities have become far too expensive to live and work in.

Employees of other state-owned firms pay less heed to the current minimum wage, as their main income comes from allowances, bonuses and incentives that are based on company profits.

The new wage level will support rising costs of living standards, particularly for workers, poor people and low income groups. The same rise will apply to income of pensioners and patriots who have rendered great service to the nation.

Source: SGGP