The Ministry of Labour, Invalids and Social Affairs has proposed a 6% increase in the regional minimum wage.
According to the Ministry of Labour, Invalids, and Social Affairs (MOLISA), the regional minimum wage has been maintained for nearly two years, as stipulated in Decree No. 38/2022/ND-CP.
Technical calculations by the National Wage Council’s technical team indicate that with an expected CPI increase of 4%-4.5% in 2024, the current minimum wage will no longer guarantee the minimum standard of living for workers and their families.
On January 12, 2024, the National Wage Council submitted a report to the Government, recommending a 6% average increase in the minimum wage, effective from July 1, 2024.
Additionally, economic and social factors, the labour market, and business conditions have shown positive developments compared to 2022. For instance, the macro-economy remains stable, with economic growth (GDP) reaching 5.05% in 2023 and an estimated 5.66% in the first quarter of 2024 compared to the previous year. Furthermore, the labour market continues its recovery, and businesses show signs of improvement. Wages and incomes of workers have stabilized and increased, with each quarter surpassing the last.
As salaries for public sector employees will be adjusted from July 1, failing to adjust the minimum wage for workers in the employment relationship sector will create an imbalance and lead to comparisons between the two sectors.
MOLISA emphasizes the necessity of increasing the regional minimum wage to ensure the minimum standard of living for workers and proposes a 6% average increase, corresponding to a rise of VND 200,000 to VND 280,000. This adjustment will take effect from July 1, 2024, coinciding with the public sector wage reform.
Specifically, Region I will see an increase from VND 4,680,000/month to VND 4,960,000/month (a rise of VND 280,000), Region II from VND 4,160,000/month to VND 4,410,000/month (an increase of VND 250,000), Region III from VND 3,640,000/month to VND 3,860,000/month (a rise of VND 220,000), and Region IV from VND 3,250,000/month to VND 3,450,000/month (an increase of VND 200,000).
The proposed wage adjustment exceeds the projected minimum living standard for workers until the end of 2024 and will essentially guarantee the minimum standard for 2025.
Regarding the minimum hourly wage, MOLISA also suggests a corresponding increase of 6%. Specifically, Region I is VND 23,800/hour, Region II is VND 21,200/hour, Region III is VND 18,600/hour, and Region IV is VND 16,600/hour.
