>> Employers warn over early minimum wage increase
>> Government to consider early pay rises
Vietnam may increase minimum wage to a maximum of VND2 million (USD97) per month, VND100,000 (USD4.8) higher than what was earlier planned.
New pay raise proposals higher than earlier planned
The Ministry of Labour, Invalids and Social Affairs (MoLISA) plans to seek the Government’s approval for its new pay raise proposals.
As a result, a minimum wage of VND2 million (USD97) per month is expected to be applied for region No. 1, including Hanoi, Quang Ninh Province, Danang City, HCM City, Vung Tau City, Binh Duong and Dong Nai Provinces. The expected payment would be VND100,000 (USD4.8) more than the earlier proposals.
The raise, in total, would be VND450,000-VND650,000 (USD21.8-USD31.5) higher than the current minimum wage for domestic companies and foreign-invested enterprises.
The ministry proposed to increase the minimum wage for region No. 2, including Haiphong City, Vinh Phuc, Thai Nguyen, Khanh Hoa, Binh Phuoc, Tay Ninh, Long An, An Giang, and Ca Mau Provinces, as well as Can Tho City, to VND1.78 million (USD86.34) per month. This raise would be VND50,000 (USD2.4) higher than earlier proposals.
The pay raise for region No. 3 will remain the same as the one previously proposed: VND1.55 million (USD75.18) a month. Region No. 3 includes Bac Ninh, Hai Duong, Hung Yen, Hue, Binh Dinh, Gia Lai, Dak Lak, Lam Dong, Ninh Thuan, Binh Thuan, Dong Thap, Tien Giang, Vinh Long, Ben Tre, Kien Giang, Hau Giang, Soc Trang, and Bac Lieu.
For region No. 4, including all the remaining localities will be also the same as those earlier proposed; VND1.4 million (USD67.91) a month.
Deputy Minister of MoLISA Pham Minh Huan said the ministry has already applied pay raises early in the year. However, to date, the sharp rise in the consumer price index has had a serious affect on people’s lives.
According to Huan, the proposal would begin from October 1 of this year. The earlier plan was for implementation in January of next year. The move is expected to improve the living standards of people who are struggling with high inflation and lagging wages.
During the process of contributing ideas for the pay raise, the Vietnam General Confederation of Labour (VGCL) had proposed MoLISA to seek the Government’s approval for a minimum wage of VND2.2 million (USD106.7) per month for region No. 1, VND2 million (USD97) a month for region No. 2, VND1.8 million (USD87.3) a month for region No. 3, and VND1.6 million (USD77.6) for region No. 4.
The VGCL explained that these proposals were based on real economic conditions. While the prices of goods are rising, workers make wages that cannot sustain inflation, particularly those who are employed in industrial parks.
The head of the MoLISA’s Department of Labour and Employment Policies said the ministry’s new pay raise proposal was made taking into account such other changing elements as the GDP, CPI and wages for manual labourers.
The method of calculating the minimum wage also took into account the results of the General Statistics Office’s (GSO) recent population census, he said.
The new proposal was well-received by both people and businesses, he added.
