Hoping for a minimum wage increase soon
Ms. Nguyen Thi Hoan (character's name has been changed), a worker at an electronics company in Viet Yen town, Bac Giang province, said that for the past 2 years, she has not received a basic salary increase. Her current basic salary is 5.1 million VND/month. This level is higher than the regional minimum wage (regional minimum wage applied in the area where her company is in region II: 4,410,000 VND/month.
In 2025, I hope the regional minimum wage will increase so that my basic salary may also be increased accordingly. The specific increase for the basic salary that I want is 200,000 VND/month, said Ms. Hoan.
Talking to reporters, Mr. Ha Minh Vi - Permanent Vice Chairman of the Trade Union of Industrial Parks in Bac Giang province - said that he hopes the minimum wage will increase in 2025 by 7% compared to the current level. "The current regional minimum wage is still not high, only meeting the minimum living standards of workers. Therefore, it is necessary to increase the minimum wage to ensure the lives of workers" - Mr. Vi explained his proposal.
According to Mr. Vi, usually every time the regional minimum wage is increased, some enterprises are applying a lower level than the regional minimum wage, so they will be adjusted to increase in accordance with regulations; some enterprises will increase the basic salary for workers with a percentage increase corresponding to the increase in the minimum wage; some units that have a high basic salary will not increase immediately but will be considered for later adjustment.
The union official added that currently, 100% of enterprises in industrial parks in Bac Giang province pay salaries higher than the regional minimum wage applied in the area.
In Nam Dinh, after 8 years of working, Ms. Pham Thi Hong received a basic salary of nearly 4.8 million VND (after deducting social insurance contributions). Each year, the basic salary of female workers increases by 219,000 VND (from 3.03 million VND/month to 4.78 million VND/month). According to Ms. Hong, this increase is not in line with market prices.
Ms. Hong cited: in 2016, the price of rice was about 12,000 VND/kg, now it has increased to 22,000 VND/kg. At that time, the price of pork was about 80,000 VND/kg but now it has increased to 130,000 VND/kg. As for her basic salary, it has increased quite slowly. After 8 years, the regional minimum wage has increased by just over 1 million VND.
Ms. Hong recommends regularly increasing the regional minimum wage by 6% per year, not extending it every year. At the same time, the female worker said that the regional minimum wage should be increased earlier, instead of leaving it for July like previous years.
The adjustment of regional minimum wages depends on many factors
Speaking to reporters, Mr. Le Dinh Quang - Deputy Head of the Department of Policy - Law and Labor Relations of the Vietnam General Confederation of Labor - said that according to regulations, the Government will issue a regional minimum wage adjustment based on the recommendation of the National Wage Council. The National Salary Council has 3 representative agencies and a number of independent experts, the most flexible of which is the representative of the Ministry of Labor, War Invalids and Social Affairs (MOLISA) because the ministry is arranging and merging professional departments.
Resolution No. 27-NQ/TW affirms that from 2021, the State will periodically adjust the regional minimum wage based on the recommendations of the National Wage Council. Currently, the regional minimum wage is adjusted according to Decree No. 74/2024/ND-CP effective from July 1, 2024. Therefore, in 2025, there is sufficient basis to adjust the regional minimum wage.
According to Mr. Le Dinh Quang, the Vietnam General Confederation of Labor has prepared that when the organizational structure, especially when the merger of professional departments of the Ministry of Labor, Invalids and Social Affairs becomes stable, the Vietnam General Confederation of Labor will propose that the National Wage Council soon have a plan to review and propose the regional minimum wage in 2025.
In addition, according to Mr. Le Dinh Quang, the adjustment of regional minimum wages depends on 7 factors (including in-depth factors): Minimum living standards of workers and their families; minimum wages and salaries in the market; consumer price index, economic growth rate; labor supply and demand relationship; employment and unemployment; labor productivity; affordability of enterprises.
The Vietnam General Confederation of Labor has had survey data and is currently continuing to conduct more in-depth research to have a basis for proposing to adjust the regional minimum wage. Currently, the Vietnam General Confederation of Labor has not proposed a specific minimum wage increase. After the Ministry of Labor, Invalids and Social Affairs reorganizes the organization, the Vietnam General Confederation of Labor will propose that the National Wage Council soon include it in the program for the meeting group to adjust the regional minimum wage" - Mr. Le Dinh Quang said.
The current regional minimum wage according to Decree 74/2024/ND-CP is as follows: Region 1 is 4,960,000 VND/month; Region 2 is 4,410,000 VND/month; Region 3 is 3,860,000 VND/month; Region 4 is 3,450,000 VND/month.
