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Friday, June 14, 2024

Minimum regional wages to rise 6% from July 1

The Saigon Times

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HCMC – The National Wage Council has approved raising the minimum regional wages by 6%, or VND180,000-260,000 per month, from July 1.

In specifics, the minimum monthly wages in Region 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, the local media reported.

At a meeting of the National Wage Council on April 12, Deputy Minister of Labor, Invalids and Social Affairs Le Van Thanh, chairman of the National Wages 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, Thanh added.

Earlier, the Vietnam General Federation 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 Federation 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 products and income falls due to Covid-19.

He said he understood the difficulties of enterprises but called on them to support laborers as the consumer price index has increased, affecting the lives of laborers.

Meanwhile, the country’s socioeconomy has been recovering. In the first quarter of the year, the economy recovered strongly. The minimum regional wage raise will benefit both employers and employees, as laborers will help increase productivity and help enterprises recover quickly, Hieu added.

The Vietnam General Federation of Labor had also suggested raising the minimum regional wages from July 1.

However, a representative of the Vietnam Chamber of Commerce and Industry said the wage hike should be applied from early 2023. Enterprises tend to recruit many workers at the beginning of year and the wage hike can help them attract and retain workers to stabilize their operations.

The minimum regional wages were most recently revised on January 1, 2020. Specifically, 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.

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