Finalize the 2024 regional minimum wage plan to increase by 6% to submit to the Government

The National Wage Council has agreed on a plan to increase the regional minimum wage in 2024 to submit to the Government for approval and application from July 1, 2024.

On the morning of December 20, the National Wage Council held its second meeting to discuss and approve the Government's recommendation on increasing the regional minimum wage applicable for 2024.

At the end of the meeting, with a majority of votes in agreement, the National Wage Council agreed on a 6% increase in the regional minimum wage in 2024 to submit to the Government. If approved by the Government, the regional minimum wage will increase from July 1, 2024 (at the same time as the reform of public sector wages).

With the above increase, the monthly minimum wage can be applied from July 1, 2024, specifically: Region 1 increases from VND 4.68 million/month to VND 4.96 million/month (an increase of VND 280,000); Region 2 increases from VND 4.16 million/month to VND 4.41 million/month (an increase of VND 250,000); Region 3 increases from VND 3.64 million/month to VND 3.86 million/month (an increase of VND 220,000); Region 4 increases from VND 3.25 million/month to VND 3.45 million/month (an increase of VND 200,000).

Similarly, with the regional minimum hourly wage, the Council also agreed to increase by 6%. Specifically, Region 1 increased from VND22,500/hour to VND23,800/hour; Region 2 increased from VND20,000/hour to VND21,200/hour; Region 3 increased from VND17,500/hour to VND18,600/hour; Region 4 increased from VND15,600/hour to VND16,600/hour.

Mr. Le Van Thanh, Deputy Minister of Labor, War Invalids and Social Affairs, Chairman of the National Wage Council, said that the council members have agreed on a plan to increase the regional minimum wage in 2024 by 6% to submit to the Government for approval.

Previously, in the discussion session, the Vietnam General Confederation of Labor proposed two options to increase the regional minimum wage in 2024 at 6.48% and 7.3%. The Vietnam Federation of Commerce and Industry proposed an increase of 4-5% and the Technical Council proposed three options of increasing by 4%, 5% and 6%.

"All council members agreed to increase the regional minimum wage by an average of 6%. This is to share difficulties between businesses and workers," said Mr. Le Van Thanh.

According to the Chairman of the National Wage Council, the wage increase plan is evaluated based on economic difficulties, world fluctuations, complex trade barriers... and the difficult living situation of workers in recent times due to price fluctuations, businesses lacking orders...

The last time the regional minimum wage was adjusted to increase was from July 1, 2022, with an average increase of 6%. After the previous adjustment, the minimum wage in Region 1 is currently maintained at 4.68 million VND/month; Region 2 at 4.16 million VND/month; Region 3 at 3.64 million VND/month; Region 4 at 3.25 million VND/month.

According to experts, increasing the regional minimum wage in 2024 is a difficult decision due to the difficult economic trend, businesses lacking orders, and unemployment that may still increase. Meanwhile, workers' lives are not easy due to reduced income due to lack of jobs. If wages are not increased, it will be difficult to meet living expenses in the context of inflation and the basic salary of the state sector and pensions have increased since last July.

In its latest report, the International Labor Organization (ILO) assessed that since 2015, Vietnam has consistently and steadily increased its minimum wage, from 119 USD/month to the current 168 USD/month. In the period 2015-2022, the minimum wage in Vietnam increased by a total of 19.8%.

In the ASEAN region, Vietnam is one of the few countries that has maintained wage increases that increase real value for workers (an increase of 0.7%); because in many countries, wage increases are lower than inflation, the real value of wages has decreased, especially since the COVID-19 pandemic.

The ILO recommends that the authorities adjust the minimum wage in line with inflation to maintain the real value of the wage increase for workers, taking into account the needs of workers and their families to promote social equity. However, wage adjustments should also be based on accurate data on inflation, economic growth, employment, business affordability and productivity.

(Vietnam+)

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