Minimum Wage 2024: Businesses Want to Delay, Workers Expect an 8% Increase

Workers want a raise

It is expected that on August 9, the National Wage Council will hold its first official meeting to discuss the regional minimum wage plan for 2024.

Before the meeting, Ms. Pham Thi Thu Lan, Deputy Director of the Institute of Workers and Trade Unions (Vietnam General Confederation of Labor) said that food costs have increased, so if wages do not increase, workers' lives will be difficult.

Through the survey, many workers have income that does not guarantee minimum expenses. Therefore, many people want to work overtime. In addition, they also want to find an outside job to increase their income.

Workers' lives still face many difficulties (Illustration: Pham Nguyen).

"We are very sad to hear workers say that," Ms. Lan said.

Usually, before the salary meeting, the union wants to negotiate a higher minimum wage. However, in reality, the adjustment level is not as expected by the workers' representatives.

"In reality, a segment of workers earn more than the minimum wage. However, many businesses are trying to cut other expenses, so workers' incomes do not actually increase," said the Deputy Director of the Institute of Workers and Trade Unions.

Currently, the Vietnam General Confederation of Labor is discussing a plan to adjust the minimum wage to both improve the lives of workers and share with businesses, helping to stabilize the economy.

"Through the survey, workers want the minimum wage to increase by at least 6-8%," Ms. Lan emphasized.

No specific increase yet

Mr. Le Dinh Quang, Deputy Head of the Legal Policy Department (Vietnam General Confederation of Labor), member of the National Wage Council, said that up to this point, the Vietnam General Confederation of Labor has not signed a document to send a proposal for a specific increase to the National Wage Council as in previous years.

According to Decree No. 38, the monthly minimum wage is being applied from July 1, 2022 to December 30, 2023 in 4 regions: Region 1 is 4,680,000 VND/month; Region 2 is 4,160,000 VND/month; Region 3 is 3,640,000 VND/month and Region 4 is 3,250,000 VND/month.

Regarding the minimum hourly wage, region 1 is 22,500 VND/hour, region 2 is 20,000 VND/hour, region 3 is 17,500 VND/hour, region 4 is 15,600 VND/hour.

According to Mr. Quang, the labor representative has prepared all the data, including announcing a survey on the living conditions, employment, and wages of workers in 2023; consulting experts, union officials, etc.

A union representative said: "This year, in the difficult context, many options need to be proposed, so we will not propose a specific level. During the negotiation process, union members, based on the prepared information, will agree with each other to discuss the salary increase level."

Mr. Quang said that there are parameters that need attention such as the income of workers who cannot meet their minimum spending needs, the consumer price index, rent, and the non-food rate.

According to this person, currently the lives of workers are still difficult, however, businesses are also facing many difficulties. One of the factors in negotiating wages is the ability of the business to pay.

Mr. Le Dinh Quang, Deputy Head of Legal Policy Department.

Therefore, it is necessary to consider adjusting regional minimum wages in a harmonious manner, both to motivate workers, increase productivity and efficiency, and to be suitable to the payment capacity of enterprises.

Regarding the opinion of many businesses proposing to postpone the salary increase, Mr. Quang said that this is also the content that the parties need to pay attention to during the negotiation process.

The current regional minimum wage is implemented according to Decree 38, with an increase of 6% compared to the previous one, applied from July 1, 2022 to December 31, 2023. According to calculations by the Vietnam General Confederation of Labor, at the time of implementing the Resolution, enterprises will meet the 6% wage increase and employees will find it suitable.

However, recently, the consumer price index has increased, the demand for workers has increased, so it is necessary to consider adjusting the salary increase. If we delay, it will prolong the time before adjusting the pension. Therefore, this factor needs to be carefully considered.

Many countries have a living wage, a "decent" wage, ensuring the lives of workers and having some savings to reduce risks.

Mr. Quang said: "In the coming time, the minimum wage needs to fulfill its function as the lowest level to protect the disadvantaged and serve as a basis for wage negotiations between the parties."

Trade unions strengthen dialogue and wage negotiations. Mr. Quang admitted that for a long time, negotiations on wages and incomes of grassroots unions have not been good. Therefore, workers have to rely on businesses to increase the minimum wage.

"We must negotiate directly through wages, collective labor agreements or regulations for building salary scales and payrolls," Mr. Quang emphasized.

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