Minimum salary needs to be adjusted according to a regular roadmap
In the draft Decree, the minimum wage (LTT) of region I increased from 4.96 million VND/month to 5.31 million VND/month (increased by 350,000 VND); region II increased from 4.41 million VND/month to 4.73 million VND/month (increased by 320,000 VND); region III increased from 3.86 million VND/month to 4.14 million VND/month (increased by 280,000 VND); region IV increased from 3.45 million VND/month to 3.7 million VND/month (increased by 250,000 VND).
Speaking to reporters, Mr. Pham Minh Huan - former Deputy Minister of Labor, War Invalids and Social Affairs (former), who served as Chairman of the National Wage Council, assessed: The proposal to increase regional LTT is necessary to improve income for workers.
He said that in the current context, it is impossible to delay the adjustment of the minimum wage. While the cost of living such as electricity, water, gasoline, accommodation, tuition fees, etc. have all increased, if not adjusted in time, the actual income of workers will increasingly "shrink".
According to Mr. Huan, the highest regional LTT level is currently only about 5 million VND/month, while the cost of living in large cities has far exceeded this figure. If the gap between LTT and the minimum living standard continues to be maintained, workers will not be able to stay in the city, forced to withdraw from the labor market.
From a policy perspective, the former Chairman of the National Wage Council said that LTT needs to be adjusted according to a regular roadmap, avoiding the situation of "frozen for several years and then increasing suddenly", causing psychological disorders for both employers and employees.
According to Mr. Pham Minh Huan, ideally, it is necessary to adjust it annually, otherwise it should also be maintained at a frequency of 18 months/time. Only when the LTT increases steadily and can be predicted, can businesses feel secure in planning production plans, and workers have a basis to stabilize their lives.
Previously, this year's National Wage Council voted to approve it through 2 sessions. At the second session, Deputy Minister of Home Affairs, Chairman of the National Wage Council Nguyen Manh Khuong said that with 13/16 members of the council voting in favor of the regional minimum wage plan for 2026. The regional minimum wage increase rate plan for 2026 is 7.2%, the increase time is January 1, 2026.
Deputy Minister Nguyen Manh Khuong assessed this as a good ratio, suitable for the current period.
7.2% is a relatively harmonious increase
Speaking to reporters on July 18, Mr. Le Dinh Quang - an expert on labor - trade unions, former member of the National Wage Council - said that the time to adjust regional LTT has always been from January 1, except for 2 times (in 2022 and 2024) from July 1 due to socio-economic conditions, especially the time affected by the COVID-19 epidemic.
Mr. Quang said that when adjusting regional LTT from July 1, there are opinions that it will cause difficulties for businesses, especially Vietnamese businesses that often develop production and business plans from January 1 every year.
Regarding adjusting LTT from January 1, it is often associated with the Lunar New Year, when businesses have to adjust their salaries at one time, and worry about bonuses, so they may face difficulties. However, Mr. Quang agreed that the time to apply regional LTT adjustment should be from January 1 every year.
"The National Salary Council needs to have a plan to organize activities to periodically adjust regional LTT every year from January 1, so that businesses can be proactive in developing salary plans and orders" - Mr. Quang proposed.
However, in the long term, Mr. Quang proposed that adjusting the increase in regional LTT needs to closely follow the spirit of Resolution No. 27-NQ/TW, bringing regional LTT back to its true function as applied by countries around the world.
Regarding the proposed increase in the labor force in the 7.2% range, Mr. Quang said that workers may expect a higher increase, but this is a relatively harmonious increase.
Mr. Quang analyzed that the country is currently implementing strong reforms to enter a new era of growth. The economic development target is set as double-digit growth, so the minimum wage and income of workers need to be adjusted to match.
In addition, increasing regional LTT also needs to be consistent with the affordability of businesses.
