Minimum wage rise
The National Wage Council has approved raising the minimum regional wages by 6%, or VND180,000260,000 per month, from July 1. In specifics, the minimum monthly wages in Regions 1, 2, 3 and 4 will increase by VND180,000, VND210,000, VND240,000 and VND260,000 to VND4.6 million, VND4.13 million, VND3.67 million and VND3.33 million, respectively.
At a meeting of the National Wage Council, Deputy Minister of Labor, Invalids and Social Affairs Le Van Thanh, chairman of the council, said the 6% rise would partly meet the demand of workers. Although this is a small increase, it can harmonize the expectations of both employers and employees. The council will submit the minimum regional wage proposal to the Government soon.
Earlier, the Vietnam General Confederation of Labor had proposed raising the minimum regional wages by 7%-8%, or VND215,000-354,000 per month.
Ngo Duy Hieu, vice chairman of the Vietnam General Confederation of Labor, said the minimum regional wages were pending an increase for two years, while wage earners had been suffering due to the rising prices of goods and income falls due to Covid-19. Further, the consumer price index has increased, affecting the lives of laborers, while the country’s economy has been recovering. The wage hike will benefit both employers and employees, as laborers will increase productivity and help enterprises recover quickly, Hieu added.
However, eight big trade associations (the Japanese Business Association and the seafood export, textile and garment, electronics, food and foodstuff, woodwork, plastics and motorbike manufacturing associations) have proposed the wage hike should be applied from January 1 next year instead of July 1 this year, as the change will cause disruption in their business plans and adversely affected their operations.
The minimum regional wages were most recently revised on January 1, 2020. The minimum wages in Regions 1, 2, 3 and 4 increased to VND4.42 million, VND3.92 million, VND3.42 million and VND3.07 million, respectively.