From 2016 to now, the minimum wage has increased by an average of 5.96%/year - a figure that is considered much lower than the rate of increase in living expenses, tuition fees, hospital fees and especially housing costs.
A recent survey by the Vietnam General Confederation of Labor in 10 provinces and cities shows that only more than 54% of workers can spend enough for basic needs, the rest have to live in poverty, even 7.9% are not enough to live on. More worryingly, 30% of workers have to borrow to pay for additional expenses - a clear sign of an unstable life. A reality is that the current minimum wage has no longer ensured its minimum role. Meanwhile, Clause 1, Article 91 of the 2019 Labor Code clearly states: The minimum wage is the lowest wage 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.
Therefore, a suitable salary mechanism is needed to anchor a workforce that is struggling at the speed of change of the times. Moreover, salary payment must be implemented in accordance with the provisions and spirit of the current Labor Code.
From a strategic perspective, Vietnam is entering a new stage of development, oriented by General Secretary To Lam as the "era of rising up". The goal of becoming a developed country with high income by 2045 cannot be just a slogan. To create social wealth for workers, first of all, they themselves must be paid accordingly.
In reality, when workers live enough, they can feel secure in sticking with the enterprise for a long time, improving productivity, thereby contributing to sustainable growth.
While the Vietnam General Confederation of Labor proposed two levels of 8.3 and 9.2%, the representative of the employers proposed a much lower level, 3 - 5%. Although there are many differences, the common point to achieve is to ensure harmonious benefits, so that salaries are not a burden, but become a lever to improve productivity and stabilize society.
The issue of increasing the minimum wage should be seen as part of the national strategy for human development. Salary is not only a cost, but an investment in the most valuable resource. That is human resources.
Therefore, the proposal to increase the regional minimum wage from January 1, 2026 to 8.3 or 9.2% is reasonable and necessary. Salary must be a launching pad for workers to develop and accompany the aspiration for prosperity of the country.
