Regional minimum wage increased to nearly 5 million VND/month

According to the Politburo's conclusion on salary reform, from July 1, along with the basic salary increasing by 30%, pensions and allowances will be adjusted to increase by 15%, and the business sector will adjust the regional minimum wage (monthly and hourly) to increase by 6%.

Workers get minimum wage increase from today 1.7

Accordingly, workers in region I increased from 4.68 million VND/month to 4.96 million VND/month (an increase of 280,000 VND).

Region II increased from 4.16 million VND/month to 4.41 million VND/month (increase of 250,000 VND).

Region III increased from 3.64 million VND/month to 3.86 million VND/month (increase of 220,000 VND).

Region IV increased from 3.25 million VND/month to 3.45 million VND/month (increase of 200,000 VND).

The hourly minimum wage also increased by 6%, region I reached 23,800 VND/hour, region II increased to 21,200 VND/hour, region III was 18,600 VND/hour, region IV was 16,600 VND/hour.

The Ministry of Labor, Invalids and Social Affairs estimates the increase to be from VND 200,000 - 280,000, equivalent to an average rate of 6% compared to the current minimum wage, higher than the minimum living standard of workers expected by the end of 2024, basically ensuring the minimum living standard in 2025.

The above adjustment level is calculated based on actual factors as prescribed by the Labor Code, including: minimum living standards of workers and their families; economic factors, labor market (economic growth, labor productivity, consumer prices, labor situation, employment); factors on market wages and business capacity (wages, average income of workers, business development situation and business trends, production, orders).

The Ministry of Labor, Invalids and Social Affairs believes that adjusting the regional minimum wage increase at the same time as increasing the basic salary is very necessary to ensure the minimum living standard of workers and proposes that the Government adjust the regional minimum wage to increase by an average of 6% (from 200,000 - 280,000 VND).

Previously, the National Wage Council sent a report to the Government recommending an average increase of 6% in the minimum wage, effective from July 1.

Through calculations, with the expected CPI increase of 4 - 4.5% in 2024, the current minimum wage will no longer ensure the minimum living standard of workers and their families in 2024 (about 4% lower).

On January 12, the National Wage Council sent a report to the Government recommending an average increase of 6% in the minimum wage, effective from July 1.

Along with that, socio-economic factors, labor market, and business capabilities have changed in a more positive direction, for example: the macro economy continues to be stable, the economic growth rate (GDP) in 2023 is expected to reach 5.05%, the first quarter of 2024 is estimated to increase by 5.66% over the same period last year.

In addition, the labor market continues to maintain its recovery momentum, and business production tends to improve. Wages and incomes of workers continue to be stable and increase, with each quarter higher than the previous quarter.

Along with the increase in minimum wage, the Ministry of Labor, Invalids and Social Affairs proposed to adjust the applicable areas due to the rearrangement of administrative boundaries according to resolutions of the National Assembly Standing Committee and areas with changes in infrastructure, labor market development level, and investment attraction areas according to the proposal of the Provincial People's Committee.

Source: https://thanhnien.vn/luong-toi-thieu-vung-tang-len-gan-5-trieu-dong-thang-185240628182236231.htm