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Labour ministry proposes delay of 2024 regional minimum wage increase

The Ministry of Labour, Invalids and Social Affairs (MOLISA) has proposed delaying a salary negotiation meeting until the fourth quarter of 2023 because there is not enough scientific and practical basis to propose a time to adjust the regional minimum wage. ​
Labour ministry proposes delay of 2024 regional minimum wage increase ảnh 1Employees working under labour contracts are directly affected by increase of minimum regional wage. (Photo: VNA)
Hanoi (VNS/VNA) - The Ministry of Labour, Invalids andSocial Affairs (MOLISA) has proposed delaying a salary negotiationmeeting until the fourth quarter of 2023 because there is not enough scientificand practical basis to propose a time to adjust the regional minimum wage.

Accordingly, MOLISA has sent an official dispatch to theGovernment Office to delay the submission of the decree stipulatingthe minimum wage for employees working under labour contracts.

The ministry was assigned to develop the decree and submit it to the Governmentin October 2023.

MOLISA said that the economy in the second quarter and the first months ofthe third quarter this year has shown signs of improvement.

However, the global and regional socio-economic and securitysituation continues to have complex and unpredictable fluctuations affecting Vietnam’seconomy.

Businesses are facing many difficulties as exports plummetand foreign investment stagnates.

At the end of August, the National Wage Council issued a writtenreport to the Government to consider the minimum wage planfor 2024.

It clearly stated that the economic impacts had not yet been fullyevaluated and the socio-economic situation had not been predicted for thecoming time, therefore, there is not enough scientific and practical basis topropose a time to adjust the regional minimum wage.

The National Wage Council asked the Government to allowa delay of the salary negotiation meeting and to postponegiving recommendations on the regional minimum wage plan until theend of the fourth quarter this year.

The ministry also suggested the Government Office torequest that the Prime Minister remove the content of the Decreeregulating regional minimum wages for workers from the ministry's 2023 workingagenda.

The development of the decree will be carried out after theNational Wage Council recommends to the Government the minimum wage plan for2024.

According to regulations, the minimum wage is the lowest wage paidto workers doing the simplest jobs under normal working conditions to ensure aminimum living standard for workers and their families compatible withsocio-economic development conditions.

Currently, the minimum monthly salary is 4.68 million VND (192 USD)for workers working in enterprises in Region 1, 4.16 million VND (170.7 USD) inRegion 2, 3.64 million VND (149.4 USD) in Region 3 and 3.25 million VND (133.3USD) in Region 4.

These levels have increased by 6% from before July 1, 2022and apply until now.

The geographical classification is determined based on theemployer’s place of operation. 

Region 1 covers the urban areas of Hanoi and HCM City; Region 2encompasses the rural areas of Hanoi and HCM City, along with major urban areasin the country such as Can Tho, Da Nang and Hai Phong; Region 3 coversprovincial cities and the districts of Bac Ninh, Bac Giang and Hai Duongprovinces; and Region 4 comprises the rest of the country./.
VNA
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