Attending the event were leaders of the Ministry of Labor, War Invalids and Social Affairs; Vietnam General Confederation of Labor; Vietnam Chamber of Commerce and Industry and related units.
Milestone for workers' rights
Leaders of the National Wage Council took a souvenir photo with former leaders and representatives of the ILO in Vietnam.
Speaking at the ceremony, a representative of the National Wage Council said that with representatives from three national parties, the formation of the Council is of great significance, changing the mechanism for establishing minimum wages in Vietnam.
The Council is responsible for assessing the implementation of the minimum wage, the wage level in the labor market and the payment capacity of enterprises to develop and recommend to the Government a minimum wage plan annually and periodically.
Since the application of the 2019 Labor Code, the Council has been supplemented with independent expert members and expanded its function of advising on wage policies for employees.
According to the Council representative, after 10 years of operation, the Council has gradually affirmed its role in the minimum wage institution in Vietnam, receiving attention and support from the social community, businesses and workers.
Since its establishment, the Council has held annual meetings to review and negotiate options for adjusting the minimum wage from 2014 to 2022, with increases ranging from about 5.5% to 15.2% based on consensus between representatives of employees and employers.
Mr. Ngo Duy Hieu, Vice President of the Vietnam General Confederation of Labor, and Vice President of the National Wage Council.
In 2019, to continue to strengthen the capacity and ensure the independent and advisory role of the Council, based on the 2019 Labor Code, the Council was strengthened. In addition to the 15 members representing the parties as prescribed, the Council was supplemented with 2 more members who are independent experts.
In particular, the Council's functions have also been expanded, in addition to the function of advising on minimum wages, it has also added the function of advising on wage policies for workers.
In December 2019, the Covid-19 pandemic appeared and had a serious impact on the socio-economy, including employment and income of workers and their families. In this situation, the Council made many recommendations appropriate to the country's context, facilitating businesses to overcome difficulties, regain momentum for recovery, as well as helping workers to keep their jobs, or have favorable opportunities to re-enter the labor market.
In the context of recovering socio-economic development after the pandemic, the Council has unanimously recommended to the Government to adjust the minimum wage, increasing by an average of 6% from July 1, 2022.
At the same time, the Council also issued regulations on minimum hourly wages for the first time to strengthen protection and expand the coverage of minimum wages to groups of workers working in the informal sector, doing short-term and part-time jobs.
Continuing to promote the mission of the Wage Council
Former leaders and members of the National Wage Council attended the celebration.
Overcoming many difficulties and challenges, the National Wage Council has been promoting its role and responsibility for the common good, with 10 years of many impressive achievements.
To date, the monthly minimum wage has increased by 99.1% compared to 2013. In particular, in 2020, for the first time, the minimum wage achieved the goal of "ensuring the minimum living standards of workers and their families" in accordance with the spirit of Resolution No. 27-NQ/TW of the Party Central Committee.
In 2022, Vietnam will for the first time issue an hourly minimum wage to expand the coverage of the minimum wage to the remaining groups of workers not yet protected by the monthly minimum wage.
The Council's recommendations have been highly appreciated by the Government, appropriate and unanimously announced, ensuring harmony of interests between parties, contributing to improving workers' lives, without causing negative impacts on businesses and the economy.
The 10 years of operation of the National Wage Council show that the establishment of the National Wage Council is a correct policy of the State, consistent with the practice of market economic development and international integration.
Wage Council leaders took souvenir photos with the technical department.
Through the Council, the mechanism for establishing minimum wages in Vietnam has undergone positive changes, from being determined and announced by the State (as in the 1994 Labor Code) to being established based on the results of negotiations and agreements between partners at the national level. This mechanism contributes to improving the level of protection for workers, reducing inequality and poverty, maintaining harmonious labor relations, improving productivity, helping to promote investment, growth and sustainable development.
In the current context, minimum wages still play an important role in wage policy, as a driving force for wage growth and social security.
On the next stage, the National Wage Council affirms that it will continue to strengthen multi-dimensional research activities, learn from international experiences, negotiate and propose reasonable minimum wages for each year and period, based on evidence and an effective and reliable tripartite dialogue and negotiation mechanism.
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