The Ministry of Labour, Invalids and Social Affairs has recommended the government delay an increase in the minimum wage.
The current minimum wage covers only 62-69% of a worker's minimum living costs
Currently, the minimum wage which took effect from January this year covers only 62-69% of a worker's minimum living costs.
Under the Labour Code, the minimum wage level should be VND2.6-3.4 million (USD123.8-161.9) per month.
Earlier, the Ministry of Labour, Invalids, and Social Affairs submitted a proposal to increase it to a level adequate for basic living needs by 2015. The minimum wage increase would be 35-27% higher in 2013; rising 25-27% in 2014 and 20-25% in 2015.
However, the ministry has proposed a delay, fearing employers cannot afford such increases at the moment.
Le Xuan Thanh, deputy head of the Department of Labour and Wage, said the ministry mulled two alternatives to put it off to 2016 with an annual rise of 18-23% or to 2017 with an increase of 16.5-20% per year, but proposed the former.
A recent survey by the Fair Labour Association, an international organisation to protect workers' rights, showed 40% of nearly 3,600 workers said their salaries failed to cover daily living costs if they worked less than 60 hours a week.
Dang Thi Hai Ha, from the Fair Labour Association, said nearly 55% of workers were unaware of negotiation mechanisms between workers and employers.
