Reforming wage policy for workers towards living wage in Vietnam

Currently, in Vietnam, wage policy is implemented through an important tool, the minimum wage. However, the reality shows that the use of the minimum wage to pay employees is still inadequate and far from reality. Instead of using the minimum wage, a number of developed countries have recently used a new concept in wage policy making, which is “living wage” with high efficiency. In line with the trend of international integration, a living wage needs to be recognized and researched and applied in practice in Vietnam to bring about more positive effects, ensuring the life of workers and the whole country the sustainable development of the business. The article uses information and secondary data to analyze the current situation of minimum wages, scientific basis for living wages and policy implications to aim at workers with a living wage in the future.

living wage of workers in Vietnam

Currently, Vietnam implements wage policy making through the important tool of minimum wage. However, the reality shows that the use of the minimum wage to pay employees is still inadequate and far from reality. Instead of using the minimum wage, a number of developed countries have recently used a new concept in wage policy making, which is “living wage” with high efficiency. In line with the trend of the world, the living wage needs to be recognized and researched and applied in practice in Vietnam to bring about more positive effects, ensuring the life of employees and the whole family. sustainable development of enterprises.

The Assemblage of Power: The Role of The State in Minimum Wage Policy in Indonesia

<p>The minimum wage is an essential issue for workers in Indonesia. Employers still apply the minimum wage to all workers, regardless of their experience. Further, the calculation of the minimum wage is still based on an estimate for single workers. This calculation can mean that a worker is unable to meet the daily needs of their dependent family. Workers in Indonesia are trapped in debt and poverty. The minimum wage in Indonesia is intended as a safety net to prevent workers from falling into poverty, with workers’ welfare the responsibility of the state. This study aims to examine the role of the state in determining the minimum wage policy. The outcomes of this process cannot be separated from the strength of workers and employers to communicate their interests. As a semi-peripheral country within the international division of labour, the minimum wage policy in Indonesia is influenced by the interests of international capital. This qualitative study uses the capitalist state theories of Miliband, Poulantzas, and Jessop to examine the role of the state and worker-employer relations, and the influence of the international market on determining minimum wage policy in Indonesia -with world-systems analysis also drawn on to investigate the international market context. Overall, this study proves that wage rates are the result of the struggle of the agency, i.e. workers, employers, and government personnel through various institutions, regulatory products and laws. The various regulations and institutions of the state ensure that the struggle between these interest groups takes place in a way that does not endanger capitalism as the prevailing economic and political system. For workers, the struggle for increased wages occurs at two levels. Firstly through tripartite institutions -Institutions where workers, employers and government representatives negotiate wages and other industrial relations issues- and laws that are created by the state to limit struggles around the wage rate. Secondly, through a larger, democratic space in strikes or demonstrations are staged. Employers mostly pursue their interests through parliamentary, tripartite institutions and through occupying prominent positions in government structures. International markets affect the determining of wage policy through the actions of international and regional institutions that provide access to overseas debt, and who stipulate the conditions to be followed by the Indonesian government in receipt of this debt.</p>

The Assemblage of Power: The Role of The State in Minimum Wage Policy in Indonesia

<p>The minimum wage is an essential issue for workers in Indonesia. Employers still apply the minimum wage to all workers, regardless of their experience. Further, the calculation of the minimum wage is still based on an estimate for single workers. This calculation can mean that a worker is unable to meet the daily needs of their dependent family. Workers in Indonesia are trapped in debt and poverty. The minimum wage in Indonesia is intended as a safety net to prevent workers from falling into poverty, with workers’ welfare the responsibility of the state. This study aims to examine the role of the state in determining the minimum wage policy. The outcomes of this process cannot be separated from the strength of workers and employers to communicate their interests. As a semi-peripheral country within the international division of labour, the minimum wage policy in Indonesia is influenced by the interests of international capital. This qualitative study uses the capitalist state theories of Miliband, Poulantzas, and Jessop to examine the role of the state and worker-employer relations, and the influence of the international market on determining minimum wage policy in Indonesia -with world-systems analysis also drawn on to investigate the international market context. Overall, this study proves that wage rates are the result of the struggle of the agency, i.e. workers, employers, and government personnel through various institutions, regulatory products and laws. The various regulations and institutions of the state ensure that the struggle between these interest groups takes place in a way that does not endanger capitalism as the prevailing economic and political system. For workers, the struggle for increased wages occurs at two levels. Firstly through tripartite institutions -Institutions where workers, employers and government representatives negotiate wages and other industrial relations issues- and laws that are created by the state to limit struggles around the wage rate. Secondly, through a larger, democratic space in strikes or demonstrations are staged. Employers mostly pursue their interests through parliamentary, tripartite institutions and through occupying prominent positions in government structures. International markets affect the determining of wage policy through the actions of international and regional institutions that provide access to overseas debt, and who stipulate the conditions to be followed by the Indonesian government in receipt of this debt.</p>

WAGE BILL AND FINANCIAL PERFORMANCE OF LEVEL 5 FAITH BASED HOSPITALS IN NAIROBI METROPOLITAN, KENYA

Purpose: The main objective of this study was to examine the effect of wage bills on financial performance of Level 5 faith based hospitals in Nairobi Metropolitan, Kenya. Materials and Methods: A descriptive survey was used in this study. The target population comprised of 6 Level 5 faith based hospitals, 30 staff members in Finance departments and 6 HR Managers. In total, the target population was 36. Census technique was used to select all the 36 respondents to participate in the study. Questionnaires were used to collect the data from the respondents whereas the financial statements were also obtained from the hospitals. Cross sectional technique was used to obtain data from the financial statements of the 6 Level 5 Faith Based Hospitals. Quantitative approach of analysis was used in the study whereby descriptive and inferential statistics were involved. The data was analyzed with the use of SPSS and summarized in frequencies and percentages. The summarized data was presented using figures and tables. Results: The findings showed that salaries affected the financial performance of the faith based hospitals to some extent. Provision of performance related incentives and allowances affect the financial performance of the faith based hospitals to a greater extent. Majority of the respondents were positive that wage policy has an effect on the financial performance of faith based hospitals. Basic salary (Beta=.298) and wage policy (Beta=.364) were found to be positively related to the financial performance of faith based hospitals. On the other hand, performance related incentives and allowances had a negative inverse association. It was also found that majority of the hospitals are providing a wage bill between 36-40%. This is fairly good because it is close to the internationally accepted wage bill percentage standard of 35%. Unique contribution to theory, practice and policy: Hospital wage bills should not exceed 40 per cent of the total revenue because it may lead to delayed payment of salaries or compromising some expenditure due to financial pressure.

Job Satisfaction in Federal Structure - A Case of Bhojpur, Nepal

Purpose: The feelings that an employee have for the job is essential to be analyzed the job satisfaction level of government employees after implementation of federal state in the context of Bhojpur district of Nepal. Design/Methodology/Approach: The questionnaire was distributed to governmental employees via mail and direct distribution to respective offices of Bhojpur district with 93.8% of response rate. The data has been divided into local, provincial and federal categories and separately analyzed along with combined analysis too. Satisfaction level along with the factors of the same was accessed using SPSS for descriptive and inferential statistics. Findings/Result: Government employees from all tiers of government viz. local, provincial and federal are dissatisfied with present remuneration, benefit and employee adjustment process along with present organizational structure, wage policy, present work performance evaluation system and decision-making system in offices but satisfied with present leave system after promulgation of federal structure. Present job authority and position are acceptable level for employees working in all three tiers of government. Most crucial factor seems to be promotion and career growth rather than remuneration. Job training, working environment, team spirit and right work performance evaluation system seem to be major parameters for job satisfaction. Job location is temporary in nature which can be easily handled. Strong reservation on promotion and job rotation approach which is included in new federal structure by all tiers of government employees. Originality/Value: It is survey-based research to guide for amendment of present organizational structures and wage policy in new federal structure of Nepal. Paper Type: Survey based Policy Research

Wage Policy in Indonesia Based on Government Regulation Number 36 of 2021 and its Economic Aspects

Wages are an important element in the employment relationship. In 2021, The Indonesian government has issued Government Regulation Number 36 of 2021 on Wage Policy. The purpose of this wage policy review is to compare the wage provision between Government Regulation Number 78 of 2015 and Government Regulation Number 36 of 2021. The novelty of this study is to find differences in term of wage rules between the previous regulation and the latest ones, and also to examine all of those differences based on both legal and economic aspects; so that, the government will get more complete understanding in carrying out wage policy. Furthermore, the wage policy produced by the government hopefully can creates a positive impact on workers and employers.

Minimum Wage and Household Consumption in Canada: Evidence from High and Low Wage Provinces

The minimum wage is a major factor for the successful implementation of much of the sustainable development goals (SDGs). The present research will investigate whether minimum wage (MW) as a sustainable wage policy improves household consumption. Thus, a panel-based analysis comparing high wage (Alberta, British Columbia, Ontario, and Saskatchewan) and low wage provinces (Manitoba, New Brunswick, Newfound land/Lab, Nova Scotia, Prince Edward Island, and Quebec) is employed for the Canadian case within the study period from 1981 to 2019. We analyze the long-term and short-term effects of MW on household consumption using the Dynamic Autoregressive Distributed Lag techniques of the Pooled Mean Group, Dynamic Fixed Effects, and Mean Group estimators. Results show that the long-term impact of MW on household consumption is positive in both the low- and high-wage provinces. The short-term effect is negative in both wage groups, but not significant for the low-wage group. This offers significant debate on the relevance of the MW towards economic stabilization and consumption-led growth.

Social protection and inequality in the global South: Politics, actors and institutions

In this themed section, we explore the links between contemporary social protection approaches and inequality in developing countries, focusing on political economy drivers and the role of actors and institutions in recent reform and implementation processes. This introduction article establishes some common ground by introducing context, concepts and questions. Reducing inequality is identified as a key condition for achieving inclusive and sustainable development as aspired in the Sustainable Development Goals governments committed to in 2015. The introduction situates the three articles in this issue, two studies of pro-poor cash transfers in the Philippines and Kenya, and an analysis of the new national minimum wage policy in South Africa, in a context of contested globalisation, increasing inequality and the social turn, a come-back of social policy as a key development instrument. After identifying the limitations and opportunities of this social turn, the article discusses the three social protection reforms and their impact on equality and social change in the different country contexts through a lens of contestation, institutions and transformative change.