Vietnam's civil servants, members of the armed forces and socio-political organizations staff enjoy an increase of 9.5 percent to their monthly minimum wage effective from July 1, reported state-run Vietnam News Agency (VNA) on Tuesday.

Quoting sources from a new government decree issued on July 1, the VNA reported that under which, the wage rises by 100.000 Vietnamese dong (VND) (4.076 U.S. dollars) from the previous 1.050. 000 VND (50 U.S. dollars).

The decree stated the adjustment was based on the budget's capacity, consumer price index and the country's economic growth.

This is the fifth minimum wage increase in the past five years. In 2009, it was 650.000 VND (30.9 U.S. dollars). In 2010, it climbed to 730.000 VND (34.7 U.S. dollars); in May 2011, to 830. 000 VND (39.5 U.S. dollars), and a year later it rose 26.5 percent to 1.050.000 VND (50 U.S. dollars).

According to the Ministry of Labour, War Invalids and Social Affairs (MoLISA), the increase will put more pressure on the social fund, which already suffered a severe imbalance between collection and spending.

Statistics showed the fund's collection rate rose 18 percent between 2011 and 2012, while spending increased by 28 percent.

Currently only 20 percent of the labour force pay social insurance, while the ratio of people paying social insurance per pensioner has declined from 217:1 in 1996 to the current 10:1, according to MoLISA.