Income increases beyond price increases
According to the Statistics Office, the consumer price index (CPI) in the first 5 months of 2025 increased by 3.21% over the same period in 2024. In particular, the price index of food and beverage services increased by 3.83%; drugs and medical services; housing, electricity, water, fuels and construction materials... were also the groups with the strongest increase in consumer price index. Notably, groups of goods with strong price increases are all essential items that people in general, including workers and laborers, use every day and every hour.
Ms. Nguyen Ngoc Ha is currently renting a room of only 12 square meters in Thanh Liet ward (Hanoi) for 1,600,000 VND/month. Ms. Ha lives with a compatriot (from Phu Tho), both of whom are working as workers at a plastic manufacturing company located in the craft village of Thanh Liet ward.
Ms. Ha shared: My basic salary is 5,300,000 VND/month, overtime, some welfare amounts..., the total income is about 8,500,000 VND/month. With low salaries and expensive costs, we live very frugally to have some money to save for our own safety. In the middle of summer, my friend and I only dare to turn on the air conditioner for 1-2 hours and then turn off it for fear of increasing electricity bills. Every week we go to the market once to cook for a whole week, but holding the money to go to the market is like being stolen, buying everything is expensive. My friend and I are not married, so we are less pressured, because many families in the boarding house have young children who go to school and have much more difficulty."
Mr. Phung Van Ha, who is currently working at a fertilizer company in Dai Thanh commune (Hanoi), said that the company is paying him a salary of VND 4,960,000/month, equal to the minimum wage in region I. In addition to overtime, lunch, gasoline, etc., Mr. Ha has a total monthly income of about VND 11 million.
"To have this income, I signed up for continuous overtime. My family has a small child about to enter grade 1, so the burden of expenses will increase. My wife is also a worker, so my income is only 2/3 of my income. I am very happy to hear that the upcoming regional I minimum wage will increase by 350,000 VND. For the worker's family, the additional income is worth that amount. We are dizzy because prices have increased, just hoping for more salary to reduce pressure," Mr. Ha shared.
The regional minimum wage is still not a living wage
Mr. Nguyen Van Minh - Director of Thuan Minh Company (Cau Giay Ward, Hanoi) said that his company specializes in the production of medical equipment. According to Mr. Minh, his company currently applies a minimum wage for direct production workers of VND 5,600,000/month, 640,000 VND higher than the regional I minimum wage.
"We use the regional minimum wage as a " curb" and always "pull it up" to calculate the salary for workers. Over the years, every time the regional minimum wage is increased, we have increased the salary for workers. Although the company is in difficulty, we are always aware that workers are valuable assets, and during many turbulent periods, workers are still attached to the enterprise, so when there is information about salary increases, there is no reason why the enterprise does not increase their salary. We understand the mood of workers, everyone wants to increase their salary...", said Mr. Nguyen Van Minh.
Speaking to reporters, Mr. Le Quang Trung - former Deputy Director in charge of the Department of Employment commented that with the minimum wage increase of 7.2% this time, employers will have to balance, improve management capacity, and assign appropriate jobs to ensure jobs and income for workers.
Mr. Trung highly appreciated the proposal to increase the regional minimum wage by 7.2% from January 1, 2026 and said that this will be a motivation for workers to work. However, according to Mr. Trung, in absolute terms, the highest increase in the minimum wage in region I, about 350,000 VND, is not a large number.
I see that the proposal to increase the regional minimum wage to 350,000 VND, reaching over 5,310,000 VND, only partially meets the needs of workers. In big cities, the cost of living is expensive, everyone understands that this salary is not a living wage," said Mr. Trung.
The regional minimum wage increase is expected to be applied from January 1, 2026
Region 1, from VND 4,960,000 to VND 5,310,000, up VND 350,000, equivalent to 7.1%
Region 2, from VND 4,410,000 to VND 4,730,000, up VND 320,000, equivalent to 7.3%
Region 3 from VND 3,860,000 to VND 4,140,000, up VND 280,000, equivalent to 7.3%
Region 4, from VND 3,450,000 to VND 3,700,000, an increase of VND 250,000, equivalent to 7.2%.
The minimum wage is the lowest salary paid to employees doing the simplest work in normal working conditions, to ensure the minimum living standard of employees and their families, in accordance with socio-economic development conditions.
