The Vietnam General Confederation of Labour has just proposed to raise the minimum wage by 21-36% next year.
The country has different wage brackets covering four regional zones. Zone One covers urban Hanoi and HCM City. Zone Two covers rural Hanoi and HCM City along with urban Can Tho, Da Nang and Hai Phong. Zone Three covers provincial cities and the districts of Bac Ninh, Bac Giang, Hai Duong, and Vinh Phuc. Zone Four covers the remaining localities.
According to the most recent survey conducted by the Institute for Workers and Trade Unions at 68 firms across the country, wages in three out of four zones are lower than VND4 million (USD192) per month. 5.2% of monthly wages are even lower than VND2 million.
Meanwhile, minimum daily expenses are around VND3.3 million per month for a family and VND2 million for a single person. Some workers cannot make savings while others simply live in poverty.
Beginning in 2014, the Institute for Workers and Trade Unions forecast the minimum daily expenses for all groups will be around VND2.4 - 4.1 million per month. Based on this statistic, Vietnam's Labour Federation has proposed two plans to improve workers' lives:
Plan one will increase the monthly minimum wage by 24-36%, from VND400,000 - 850,000 to VND2.05 - 3.2 million. And plan two will only increase the minimum wage by 21-32%.
Vu Quang Tho, head of the Institute for Workers and Trade Unions said their proposal met with oppositions from Vietnam Co-operative Alliance and Vietnam Chamber of Commerce and Industry. They said that firms are unable to pay more because of the economic downturn.
The National Wages Council will collect opinions to find the most suitable solution for both parties and submit the plan to the Prime Minister.
