>> Raise of minimum wage may be higher than expected
>> Employers warn over early minimum wage increase
>> Government to consider early pay rises
The Ministry of Labour, Invalid and Social Affairs (MoLISA) took into account corporate financial competence while drafting the early pay raise proposal, an official said.
Early pay raise proposal reasonable for enterprises
MoLISA Deputy Minister Pham Minh Huan said that both enterprises and foreign investors are worried about the expected pay raise.
Enterprises with more than 1,000 employees may be hardest hit by the salary increases, Huan said.
A group of some enterprises may not be affected by the proposed pay raise. Enterprises at the Nam Thang Long industrial park have a minimum wage of VND3 million (USD145.5) per month, which is higher than the proposal.
According to Huan, enterprises should share the burden of the rapidly increasing cost of living. The pay raise would be applied one fiscal quarter sooner than the scheduled. When the country’s socioeconomic situation is improved, the Government will follow the normal pay raise road map.
He also shared his fears that the pay raise would drive up the unemployment rate, as well as the price of goods, because businesses may be more reluctant to hire new staff.
Local authorities should take actions to prevent landlords from raising electricity prices for workers who live in guesthouses, he suggested.
The Government should consider measures that would stimulate building housing for workers and stabilise prices, he noted.
Under MoLISA’s pay raise proposal, a minimum wage of VND2 million (USD97) per month would to be applied for region No.1, while the ministry proposed to increase in the minimum wage for region No. 2. to VND1.78 million (USD86.34) per month.
The pay raise for region No. 3 will remain the same as the previous proposal of VND1.55 million (USD75.18) a month. For region No. 4, and all the remaining localities,the proposal also remains the same, at VND1.4 million (USD67.91) a month.
If approved, the pay raise will take effect from October 1 this year, instead of next January 1.
Workers struggling with spiraling living costs
