The National Wage Council on July 9 opened its first meeting of the year, discussing the regional minimum wage change to be applied next year. (Photo vnexpress.net) Hanoi (VNA) - TheNational Wage Council convened its first meeting of the year in Hanoi on July 9,discussing the regional minimum wage increase for next year.
The change will affect about ten million people who are working with labourcontracts in non-State enterprises.
At the meeting, the Vietnam General Confederation of Labour (VGCL), which represents employees, proposed anincrease of 8 percent in the regional minimum salary while the Vietnam Chamberof Commerce and Industry, reprsentating businesses, asked for the wage to remain unchanged in 2019.
Addressing the event, Deputy Minister of Labour, Invalid and Social Affairs cumChairman of the council Doan Mau Diep said that according toResolution 27-NQ/TW on salary reform that the Communist Party of Vietnam CentralCommittee issued in May 2018, the State would gradually not intervene in thewage policy of enterprises but promote negotiations between employers andemployees.
He said that from now until 2020, regional minimum wage must be adjusted toensure minimum living conditions for employees, especially those who are paidthe least.
“When negotiating minimum wage changes, factors such as GDP, labourproductivity, salary on labour market and employers’ budget must be taken intoaccount,” he said.
According to VCCI Vice Chairman Hoang Quang Phong, most domestic and foreignemployers told the chamber that next year is not the right time to adjust theminimum wage as they want to increase their financial capacity or spend funds –which they can arrange – on training and improving employees’ skills to bettermeet job requirements and increase productivity.
“The minimum wage should be increased then, in the further future,” Phong said.
Meanwhile, VGCL Vice President Mai Duc Chinh said the 8-percent increase proposedby his agency is suitable as Vietnam’s gross domestic product (GDP) in the firsthalf of this year grew more than 7 percent compared with the same period oflast year.
“The economic growth is notable and labourers deserve benefiting from theeconomic development,” he said.
He also said that Government decided the 7-percent increase for employeesworking in State organisations and enterprises this month, despite itstightened budget.
A recent survey by the VGCL showed that the monthly minimum wage could coverabout 92 percent of minimum living conditions for employees while Vietnam targetedthat by 2020, the minimum wage could ensure their minimum living conditions.
Currently, the minimum wage is applied for four different regions in Vietnam asfollows: Region I: 3.98 million VND (189 USD); Region II: 3.53 millionVND (168 USD); Region III: 3.09 million VND (147 USD) and Region IV: 2.76 millionVND (131 USD). The highest rate covers urban parts of Hanoi, Hai Phong, HCMCity, Dong Nai and Ba Ria - Vung Tau.
The 2018 regional minimum wage is 6.5 percent higher than that of 2017, equalto 180,000-230,000 VND (8-10 USD) a month.-VNA
The change will affect about ten million people who are working with labourcontracts in non-State enterprises.
At the meeting, the Vietnam General Confederation of Labour (VGCL), which represents employees, proposed anincrease of 8 percent in the regional minimum salary while the Vietnam Chamberof Commerce and Industry, reprsentating businesses, asked for the wage to remain unchanged in 2019.
Addressing the event, Deputy Minister of Labour, Invalid and Social Affairs cumChairman of the council Doan Mau Diep said that according toResolution 27-NQ/TW on salary reform that the Communist Party of Vietnam CentralCommittee issued in May 2018, the State would gradually not intervene in thewage policy of enterprises but promote negotiations between employers andemployees.
He said that from now until 2020, regional minimum wage must be adjusted toensure minimum living conditions for employees, especially those who are paidthe least.
“When negotiating minimum wage changes, factors such as GDP, labourproductivity, salary on labour market and employers’ budget must be taken intoaccount,” he said.
According to VCCI Vice Chairman Hoang Quang Phong, most domestic and foreignemployers told the chamber that next year is not the right time to adjust theminimum wage as they want to increase their financial capacity or spend funds –which they can arrange – on training and improving employees’ skills to bettermeet job requirements and increase productivity.
“The minimum wage should be increased then, in the further future,” Phong said.
Meanwhile, VGCL Vice President Mai Duc Chinh said the 8-percent increase proposedby his agency is suitable as Vietnam’s gross domestic product (GDP) in the firsthalf of this year grew more than 7 percent compared with the same period oflast year.
“The economic growth is notable and labourers deserve benefiting from theeconomic development,” he said.
He also said that Government decided the 7-percent increase for employeesworking in State organisations and enterprises this month, despite itstightened budget.
A recent survey by the VGCL showed that the monthly minimum wage could coverabout 92 percent of minimum living conditions for employees while Vietnam targetedthat by 2020, the minimum wage could ensure their minimum living conditions.
Currently, the minimum wage is applied for four different regions in Vietnam asfollows: Region I: 3.98 million VND (189 USD); Region II: 3.53 millionVND (168 USD); Region III: 3.09 million VND (147 USD) and Region IV: 2.76 millionVND (131 USD). The highest rate covers urban parts of Hanoi, Hai Phong, HCMCity, Dong Nai and Ba Ria - Vung Tau.
The 2018 regional minimum wage is 6.5 percent higher than that of 2017, equalto 180,000-230,000 VND (8-10 USD) a month.-VNA
VNA
