This is the question that National Assembly delegate Nguyen Thien Nhan (Ho Chi Minh City delegation) asked the Ministry of Labor, Invalids and Social Affairs.

Specifically, in the question sent to the Ministry of Labor, Invalids and Social Affairs, delegate Nguyen Thien Nhan asked: In 2017, the Party Central Committee issued Resolution No. 21 on population development in the new situation, setting a strategic goal: Each Vietnamese woman in her lifetime gives birth to an average of 2.1 children, ensuring a stable replacement birth rate. Thus, a family with 2 working spouses must support 4 people: 2 working people and 2 children. That is, one working person must support 2 people (themselves and 1 dependent person - PV).

In 2024, when Vietnam is an upper middle-income country, will the minimum wage in the Wage Reform Project be able to support 2 people? If not, will Resolution No. 21 on population development in the new situation be implemented?

Responding to the question of National Assembly Delegate Nguyen Thien Nhan, the Ministry of Labor, Invalids and Social Affairs said that according to the provisions of the Labor Code, wage policy in the enterprise sector is decided by employees and employers, based on negotiations and compromises between the two parties. The State only regulates the minimum wage as the lowest floor to protect low-skilled workers who do simple jobs from being paid too low.

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Child-rearing costs are determined based on the size of a Vietnamese household of 4 people, each of whom can raise 1 child. (Illustration: Thach Thao)

The minimum wage is decided and announced by the Government based on the recommendations of the National Wage Council and is adjusted based on the minimum living standards of workers and their families; the equivalence between the minimum wage and the market wage; the consumer price index; economic growth rate; labor productivity; and the payment capacity of enterprises.

Based on the provisions of the Labor Code, the National Wage Council has determined the minimum living standard for workers to ensure that they can pay the most basic expenses for: Food and food costs to ensure adequate Kcal supply (2,300 Kcal/day/person) so that workers can reproduce their labor;

Costs to meet minimum consumer needs for education, health care, transportation, contributions, and other expenses;

Child-rearing costs are determined based on the Vietnamese household size of 4 people, each of whom can raise 1 child.

The National Wage Council has determined the minimum living standard for workers and reviewed and updated it every two years based on the results of the population living standard survey announced by the General Statistics Office.

In 2022, based on the recommendation of the National Wage Council, the Government issued Decree No. 38 adjusting the minimum wage to increase by an average of 6%, effective from July 1, 2023, ensuring a minimum standard of living and improving it for workers.

On December 20, 2023, the National Wage Council met and agreed to recommend to the Government the minimum wage plan to be applied from July 1, 2024, with an average increase of 6% (equivalent to an increase from VND 200,000 to VND 280,000).

The Ministry of Labor, Invalids and Social Affairs will draft and submit to the Government a Decree regulating the minimum wage for employees working under labor contracts.