'Salary increases by 1 dong, price increases by 2 dong, workers who are already in trouble become even more in trouble'

Besides the joy of the proposed salary increase, workers are also worried about the "follow the rain" in goods.

The Ministry of Labor, War Invalids and Social Affairs (MOLISA) is seeking comments on the Draft Decree regulating the minimum wage for employees working under labor contracts.

Based on the recommendation of the National Wage Council after the meeting held on January 12, 2024, the Ministry of Labor, Invalids and Social Affairs proposed to adjust the minimum wage (LTT) to increase by 6% compared to the current level, applicable from July 1, 2024.

Specifically, the monthly minimum wage in 4 regions: region I is 4,960,000 VND/month, region II is 4,410,000 VND/month, region III is 3,860,000 VND/month, region IV is 3,450,000 VND/month. The above minimum wage increases from 200,000 - 280,000 VND, about 2% higher than the minimum living standard of workers until the end of 2024; it is expected to basically ensure the minimum living standard in 2025.

Hearing the news, Ms. Tran Thi Hanh (from Nam Dinh), a worker at Khai Hoan Shoe Manufacturing Joint Stock Company (Binh Chanh District, Ho Chi Minh City) was both excited and worried. What worries workers like her is that every time the salary increases, prices increase, especially for essential goods.

She and her husband have been working as factory workers for more than 10 years, with a total monthly income of about 12-13 million VND. All expenses depend on that. Ms. Hanh said her priority is to pay for her children's tuition and send money back home to support both sets of parents. That's why her family's daily meals are very frugal. Only on special occasions do they dare to spend lavishly.

"Increase wages to compensate for inflation, ensure living standards for workers, but when wages increase by 1 dong, prices increase by 2 dong, if the government does not have a control policy, the already difficult lives of workers will become even more difficult" - Ms. Hanh expressed.

'Salary increases by 1 dong, price increases by 2 dong, workers who are already in difficulty become even more in difficulty' photo 2

Low income, daily meals of workers are very frugal, only on special occasions do they dare to spend lavishly.

Similarly, with a worker's salary, Ms. Tran Thi Kim Tan (from Ben Tre), working at Gonze Company Limited (Tan Thuan Export Processing Zone) has to calculate her spending every day to save as much as possible so as not to have to borrow money. Ms. Tan worked for 10 years as a worker for a company in District 12, earning 8-9 million VND/month, if she worked overtime. However, in 2018, the company dissolved due to difficulties, losing her job at the age of 33, she had to struggle a lot to get into the current company and has been working here for 5 years now.

Ms. Tan's husband is a freelancer and his income is not much. Therefore, the family's main source of income is Ms. Tan's salary, but for the past 2 years, there has been no salary increase while the electricity and food bills have increased compared to before, making the family even more needy. She said that with 6 million VND, she has to pay nearly 3 million VND for housing, electricity, and water each month. The rest is for food, gas, and funeral expenses...

'Salary increases by 1 dong, price increases by 2 dong, workers who are already in difficulty become even more in difficulty' photo 3

Pork, sea fish, dried meat, eggs... are the foods that workers prioritize because of their affordable prices.

To save money, the couple had to skip breakfast and did not buy anything for the house. For dinner, she did not dare spend more than 50,000 VND on food per day, except on days when the house ran out of rice, sugar, fish sauce, salt... and had to buy more.

"Some things like dried fish and dried shrimp, I also have to ask my parents in the countryside to send them up. Hearing about the salary increase, everyone is happy, I just hope the price of goods doesn't increase so we don't have to suffer anymore" - she sighed.

According to the Ministry of Labor, War Invalids and Social Affairs, the above minimum wage increases from VND 200,000 - VND 280,000 (equivalent to an average rate of 6%) compared to the current minimum wage. The above minimum wage adjustment is about 2% higher than the minimum living standard of workers until the end of 2024 to improve the living conditions of workers; it is expected to basically ensure the minimum living standard in 2025 (pre-calculating a part of the CPI of 2025 into the minimum living standard so that workers can enjoy it from mid-2024). This adjustment level shares and harmonizes the interests of workers and businesses, paying attention to improving the lives of workers while paying attention to ensuring the maintenance, recovery and development of production and business of enterprises. 100% of the members of the National Wage Council agree and recommend the Government to adjust according to this level.