Low-lying minimum wages make many workers disadvantaged when returning home

Minh Hương |

Many workers who return to their hometowns to work or change jobs share that they have to pay lower social insurance due to changes in regional minimum wages.

Working in an industrial park in Dong Nai, Ms. Pham Thi Ly said that the company paid her social insurance for 5.3 million VND. However, when she returned to her hometown in Bac Giang (old) to work, what she felt most regretful about was the social insurance payment of only 4.3 million VND.

"The company I used to work for in Bien Hoa City, Dong Nai, belongs to Region 1, so it is paid the highest level of social insurance. Now working in my hometown in region 3, the contribution is 1 million VND lower, I feel very disadvantaged when receiving insurance benefits" - Ms. Ly said.

Sharing more, Ms. Ly said that the company's contribution rate is still higher than the region. Many other companies have an insurance premium of only about 4.15 million VND, although low, but still in accordance with regulations.

Ve que, thay doi luong toi thieu vung, muc dong bao hiem xa hoi cua chi Ly giam 1 trieu dong/thang. Anh: Minh Huong.
Returning to her hometown, changing the regional minimum wage, Ms. Pham Thi Ly's social insurance contribution rate decreased by 1 million VND/month. Photo: Minh Huong

According to the female worker, the current huge gap between regions is unfair. After many years of living in the city, the cost of goods is not much different from the countryside, the most expensive thing is the cost of renting a room, electricity and water.

However, according to Ms. Ly, workers do not only live on basic salary (the salary for social insurance contributions). Workers have to work overtime or try to produce a lot to achieve a high income.

The female worker commented that relying on the region to establish a regional minimum wage is no longer reasonable. Ms. Ly proposed to remove the minimum wage regulation for each region, only establish a common basic salary level or reduce the salary gap between regions so that workers can feel secure when they want to return home to work.

Not all workers have the conditions to stay in the city for a long time. The regional minimum wage gap between regions should be narrowed or a general minimum wage should be regulated. Only then can people be encouraged to return to their hometowns to settle down and feel secure with their salary if they work according to the time and insurance benefits they are entitled to" - Ms. Ly said.

After nearly 10 years of working with a leather shoe company, Ms. Nguyen Thi Phuong received 5.3 million VND in social insurance from the company. However, after moving to another company to work, Ms. Phuong was only paid 4.2 million VND in insurance.

"Coming to a new company, no matter what position I was in before, how much social insurance I paid, I was only able to pay the lowest level of social insurance and then gradually increase it over time" - Ms. Phuong said.

Ms. Phuong said that only when working as a manager or in an important position will the higher insurance premium be considered. The lowest level is still higher than the regional minimum wage, so it is completely in accordance with regulations but quite disadvantageous for workers.

The female worker shared that she works over time, so the regional minimum wage helps ensure stable income and more practical insurance regimes. However, companies are very limited in increasing regional minimum wages, only increasing when the State adjusts, and workers are always the most disadvantaged.

"After this, if I receive unemployment benefits, I will only receive about 2.5 million VND/month. If I receive the payment level of 5.3 million VND at my old company, I will receive 3.2 million VND/month. Low payment also has a significant impact on future pensions" - Ms. Phuong said.

To achieve a management position in the unskilled labor position, Ms. Phuong said it was extremely difficult. Therefore, more than anyone else, the female worker always hopes that the regional minimum wage will be adjusted to increase by at least 6% periodically to increase once a year.

In addition, the female worker also hopes that the State will consider regulating the social insurance payment level at the new company when transferring to a workplace equal to or lower than 10% of the payment level at the old company to feel secure about the benefits.

Minh Hương
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