Government Raises Minimum Wage Starting from July 1, 2024

The National Wage Council has proposed a 6% increase in the regional minimum wage within businesses, averaging 238,000 Vietnamese dong starting from July 1, 2024.

0
97

The national wage council finalized a 6% increase in the regional minimum wage effective from July 1st.

In detail, the proposed increase by the council is 6%, equivalent to an increase of 200,000 – 280,000 dong. Specifically, region 1 wage will be raised to 4.96 million dong; region 2 will be 4.41 million; region 3 will be 3.86 million; and region 4 will reach 3.45 million dong. The wages in the regions currently range from 3.25 to 4.68 million dong.

The hourly minimum wage will also increase by 6% from mid-2024. Specifically, region 1 will be raised to 23,800 dong; region 2 will be 21,200 dong; region 3 will be 18,600 dong; and region 4 will be 16,600 dong.

Prior to mid-2023, the wage council met to discuss the increase in the minimum wage for 2024. However, at this time, the council hasn’t fully assessed the impacts and forecasted the economic and social situation for the coming period.

The council also noted that the timing is not sufficient to propose adjustment plans and the timing for adjusting the minimum wage in 2024 based on scientific and practical grounds.

 

The Vietnam General Confederation of Labor proposed two options for a 6.48% or 7.3% increase, effective from July 1st, 2024, alongside the reform of state-owned sector wages. The proposed increase is based on the improved economy and increased business orders.

Meanwhile, the Vietnam Chamber of Commerce and Industry (VCCI) proposed a 4.5-5% increase. After negotiation, all 16 members of the wage council voted in favor of a 6% increase, with an increase of 200,000-280,000 dong depending on the region.

Vice Minister of Labor, Invalids and Social Affairs Le Van Thanh – Chairman of the national wage council, considers the 6% increase to be a balanced and shared solution to the difficulties faced by both workers and employers.

The proposed effective date of the increase is July 1st, in line with the Party’s policy on the timing of implementing the reform of state-owned sector wages, ensuring that businesses have sufficient time to prepare plans and resources for implementation.

Nhat Quang

SOURCEvietstock
Previous articleWill depositing money into the bank on Lunar New Year bring good luck all year?
Next articlePrime Minister Pham Minh Chinh: Corporations and State-Owned Enterprises must concentrate resources for investment and development