Increasing regional minimum wages to retain workers

Hương Dung |

Many workers expect the regional minimum wage to increase from January 1, 2026, helping to improve income, leading to allowances and ensuring a minimum living standard in the context of escalating prices. The company also admitted that to retain employees, the income must be 8-10 million VND/month.

Increasing regional minimum wage leads to many allowances

Mr. Nguyen Huu Hau (33 years old, from Thanh Hoa), a worker at an electronic components manufacturing company in Thang Long Industrial Park, Hanoi, is one of them.

Mr. Hau said that the basic salary he currently receives is 5,430,000 VND/month - 470,000 VND higher than the minimum wage in region I (4,960,000 VND). For him, increasing the regional minimum wage from the beginning of 2026 is necessary and has practical significance.

Talking to a reporter from Lao Dong Newspaper, Mr. Hau gave the reason why increasing the minimum wage will bring many benefits to employees.

According to Mr. Hau, increasing the regional minimum wage not only helps improve basic income but also directly affects accompanying allowances. He cited: Last year, when the State adjusted the minimum wage, I received an additional allowance of about 50,000 VND for each toxic allowance, responsibility and seniority. In total, we have also earned a few hundred thousand VND, saving some living expenses".

The second reason that the male worker raised was the impact of basic salary on income during the prescribed days off.

"If the basic salary increases, income these days will be much better" - Mr. Hau analyzed.
Maple Company Limited (VSIP Industrial Park, Hai Phong) currently creates jobs for more than 3,000 workers.Every year, the company conducts a survey of employee satisfaction with the company's payment level with the guarantee of monthly spending of employees.Through 4 surveys, the majority of employees believe that their current income is not enough to cover their living expenses.

According to the survey, families of workers with 2 husbands and 2 children, with an average income of 12 million VND/month, are only temporarily enough to cover monthly expenses if the whole family is not sick. To increase income, most workers choose to work overtime, some months with 70-80 hours of overtime. However, the consequences of overtime are the risk of occupational diseases, accidents after work, employees incur costs to hire someone to look after their children, pick up and drop off their children, take care of their elderly parents, etc.

"Workers look forward to the salary increase policy of the State as well as the company, at least once a year at about 7%, although not much, it is a way to encourage the spirit of employees", said Ms. Bui Hong Lien - Chairman of the Trade Union of Maple Company Limited.

motivation for businesses to adjust salaries

At Yazaki Hai Phong Vietnam Co., Ltd. (Japan Industrial Park - Hai Phong), according to Mr. Dao Xuan Thu - Vice Chairman of the company's Trade Union, the enterprise is currently paying a minimum wage higher than 7%, which is 5,980,000 VND/person/month, the average income of employees is 11 million VND/month. If paid according to the regional minimum wage, it will be very difficult for businesses to recruit workers. In reality, the salary must be from 6 million VND or more to be able to recruit workers. Only with a guaranteed income of 8-10 million VND/month can businesses retain employees.

"Young workers who have just started working can accept a salary of 6 million VND/month, but for workers with families, this is not enough to live on. The annual salary increase must be 10% to improve the quality of life of employees, and if it increases by about 5-6%, it will only compensate for inflation" - Mr. Thu said.

According to the survey results conducted by the Vietnam General Confederation of Labor in March - April 2025 with nearly 3,000 workers answering for forms in 10 provinces and cities, up to 12.5% of workers have to borrow monthly to make ends meet; 29.9% said they have to borrow money occasionally, about 3 - 4 months/time.

From that reality, the Vietnam General Confederation of Labor continues to affirm that it will negotiate to increase the regional minimum wage in 2026 to 8.3 - 9.2% and propose to apply an increase at the time of January 1, 2026.

Although there are many negotiations ahead, the expectations of employees are clear: To be paid worthy, enough to live and have the opportunity to escape the situation of "working day by day, eating day by day".

Hương Dung
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