Proposal to increase minimum wage by 6.5%-7.3%

On the morning of December 20, the National Wage Council held its second meeting of 2023 to discuss and negotiate a plan to adjust the regional minimum wage in 2024. Initially, representatives of employers and employees expressed their own views on this issue.

Speaking before the meeting, 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% to 7.3%, 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 salaries for workers is appropriate," said Mr. Ngo Duy Hieu.

Đề xuất tăng lương tối thiểu 6,5%-7,3% - 1 — Vice President of Vietnam General Confederation of Labor Ngo Duy Hieu (Photo: Gia Doan).

Explaining that the proposed increase this time is higher than the previous meeting, the Vice President of the Vietnam General Confederation of Labor said that the current socio-economic situation is showing 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 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," said Mr. Ngo Duy Hieu.

Agreeing with the need to adjust the regional minimum wage 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 union is not suitable for the current situation.

"We agree that the minimum wage needs to be adjusted. However, the increase proposed by the union is not possible at this time," Mr. Phong said.

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

Đề xuất tăng lương tối thiểu 6,5%-7,3% - 2 — Business representatives said that increasing the regional minimum wage should be carefully considered and negotiated in a harmonious and appropriate manner (Photo: Nguyen Son).

Mr. Phong analyzed that the market is difficult both domestically and internationally, especially for export enterprises. In addition, the international situation affects the supply chain, reducing business orders and reducing employment.

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.

"Although the situation is very difficult, salaries cannot but be adjusted. I hope the National Wage Council will agree on a specific number, a harmonious and appropriate increase," Mr. Phong said.

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