Finalize proposal to increase minimum wage by 6% from July 2024

Proposal to increase regional minimum wage from 6.5% - 7.3%, salary increase date from July 1, 2024

The National Wage Council has just held its second meeting in 2023 to discuss and negotiate a plan to adjust the regional minimum wage in 2024.

Mr. Ngo Duy Hieu, Vice President of the Vietnam General Confederation of Labor (VGCL), Vice President of the National Wage Council, said that at this meeting, the representative of workers proposed to increase the regional minimum wage from 6.5% - 7.3%, with the wage increase starting from July 1, 2024.

"The two proposed levels are based on an assessment of the economic and social situation, considering many aspects, including the responsibility shared with employers. Hopefully, the parties will have a common voice to finalize a suitable regional minimum wage that meets the needs of workers.

In the context that salaries of civil servants, public employees, and armed forces will increase from July 1 next year, adjusting workers' salaries at the same time is appropriate," said Mr. Ngo Duy Hieu.

Explaining that the proposed increase this time is higher than the previous meeting, Vice President of the Vietnam General Confederation of Labor Ngo Duy Hieu said that the current socio-economic situation shows signs of improvement. Meanwhile, the target of increasing the minimum wage from January 1, 2024 cannot be realized due to legal procedures.

"If the salary increase is delayed for a period of time (6 months), it is necessary to increase the increase to compensate the workers. We agree with increasing the regional minimum wage at the same time as the salary increase in the public sector to ensure consistency and demonstrate shared responsibility in both sectors," Mr. Ngo Duy Hieu informed.

Agree to increase regional minimum wage on July 1, 2024

Finalize proposal to increase minimum wage by 6% from July 2024 — Plan proposed by Vietnam General Confederation of Labor.

Agreeing with the need to adjust regional minimum wages as desired by the organization representing workers, on the business side, Mr. Hoang Quang Phong, Vice President of the Vietnam Confederation of Commerce and Industry (VCCI), Vice President of the National Wage Council, said that the increase proposed by the Trade Union is not suitable for the current situation.

"We agree that the minimum wage needs to be adjusted. However, 6% is high, so in my personal opinion, 4% is more reasonable," said Mr. Phong.

VCCI representative said that the adjustment is necessary in the coming time, because when public sector salaries are adjusted, the business sector also needs to implement accordingly. However, in the current context, businesses are also facing many difficulties, many units are even having to "struggle" to maintain jobs for workers.

Mr. Hoang Quang Phong analyzed that both domestic and international markets are difficult, affecting the operations of enterprises, especially export enterprises. In addition, the international situation affects the supply chain, causing business orders to decrease and employment to decrease.

There are still many businesses leaving the market. Besides the goal of keeping jobs, businesses must also consider adjusting the regime for employees, based on the endurance and payment capacity of the business.

Mr. Le Dinh Quang, Deputy Head of the Legal Policy Department, Vietnam General Confederation of Labor, said: "Through the morning discussion, the Vietnam General Confederation of Labor proposed two options; while the employers proposed no more than 5%. Regarding the time, the parties agreed to increase the regional minimum wage on July 1, 2024."

Finalize the plan to increase the regional minimum wage at an average increase of 6% from July 1, 2024

Concluding the meeting, after listening to the opinions of relevant parties, Mr. Le Van Thanh, Deputy Minister of Labor, War Invalids and Social Affairs, Chairman of the National Wage Council, said that all members of the National Wage Council present at the meeting voted to finalize the 2024 regional minimum wage increase at 6%, effective from July 1, 2024.

Mr. Ngo Duy Hieu, Vice President of the Vietnam General Confederation of Labor and Vice President of the National Wage Council, assessed: "The 6% increase is appropriate in the context of employees sharing the difficulties of businesses."

Besides, "this increase basically meets the minimum living standards of workers," said the Vice President of the Vietnam General Confederation of Labor.

With this increase in regional minimum wage, the Vietnam General Confederation of Labor will continue to promote and encourage workers to improve productivity and overcome difficulties with businesses.

Besides, businesses also need to continue to expand the market and increase orders so that workers have jobs in the coming time.

From the perspective of the employer representative, Mr. Hoang Quang Phong, Vice President of the Vietnam Federation of Commerce and Industry, Vice President of the National Wage Council, said that at the second meeting, the proposal of the employee representative included a higher rate than the rate finalized by the National Wage Council (6%).

The employer proposed a lower rate. After that, through multi-sided discussions, an increase of 6% was agreed upon to be submitted to the competent authority, from which a Decree was issued for implementation.

Mr. Phong expressed "not satisfied" with this increase because the business community is facing many difficulties, especially in the industrial, trade and service sectors; and predicted that 2024 will still be difficult.

However, Mr. Phong shared that the National Wage Council operates on the principle of consensus. Once the Council has reached an agreement, businesses and employers must comply with and strictly implement the approved regulations.

"This is also a sharing of sympathy between employers and employees in the spirit of harmonious benefits and shared risks. Employers want employees to sympathize and share," Mr. Phong expressed.

(VTV)

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