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Region-based minimum wage in 2021 to remain unchanged after hikes

The National Wage Council will ask the Government not to adjust up the region-based minimum wage in the next year, keeping it the same as in 2020.
Region-based minimum wage in 2021 to remain unchanged after hikes ảnh 1Region-based minimum wage is not likely to hike in 2021. (Illustrative image: VietnamPlus).

Hanoi (VNA) - The National Wage Council will ask the Government not to adjust up the region-based minimum wage in the next year, keeping it the same as in 2020.

The council has decided to request the Government not to increase region-based minimum wage in 2021. The information was unveiled during a meeting of the council on the matter held in Hanoi on August 5.

Members of the council casted vote on continuing the current monthly region-based minimum wage by the end of the next year (unchanged during 2021) and postponing the decision on hourly minimum wage in tandem with the monthly sum.

During the meeting, only nine out of the Council’s 13 members casted their ballots, equivalent to 69.2 percent, all of them in favour of the option. Those who did not cast their votes were representatives of the Vietnam General Confederation of Labour (VGCL), as they did not agree on the choice.

In earlier working sessions, the VGCL put forward two options reflecting labourers’ wishes: to raise the minimum wage by 3.95 percent from the start of the second half of next year or 2.5 percent at the beginning of 2021. However, the confederation proposed the delay of a plan to raise minimum wage after negotiations.

Region-based minimum wage in 2021 to remain unchanged after hikes ảnh 2The National Wage Council holds a press conference on region-based minimum wage in 2021 (Photo: VietnamPlus)

Le Dinh Quang, member of the National Wage Council and Deputy Director of the Labour Affairs Department at the VGCL, said benchmarks for minimum wage adjustment depend significantly on the recovery of the national economy, the overcoming of consequences caused by the COVID-19 pandemic, as well as the global economy.

As the situation in 2021 remains unpredictable, the VGCL proposed the postponement of the minimum wage adjustment in the year and continue the implementation of Decree No. 90/2019/ND-CP until July 1, 2021, then consider the adjustment in keeping with the situation at the time.

Accordingly, the region-based minimum wage this year will remain unchanged by the beginning of next July.

“The Council will operate under the new elements of the 2019 Labour Code. Consideration for the minimum wage adjustment will also be applied based on seven criteria of the new Labour Code.

“Therefore, the Council is scheduled to hold meetings focusing on whether the wage should be increased or not in the first or second quarter,” Quang suggested.

Hoang Quang Phong, vice president of the Vietnam Chamber of Commerce and Industry (VCCI), said enterprises are facing a lot of difficulties and cannot afford to raise the minimum wage.

To facilitate their recovery in such a difficult time, the VCCI proposed not to increase the region-based minimum wage in 2021, he said, voicing his hope that the labourers will join hands with the enterprises to overcome the hardships.

Deputy Minister of Labour, Invalids and Social Affairs Le Van Thanh, Chairman of the National Wage Council, said that the option of not raising region-based minimum wage in the next year will be submitted to the Government for consideration, along with opinions of the VGCL.

As a result, the minimum wage for workers in Region I, which covers Hanoi and Ho Chi Minh City's urban areas, is set to remain at 4.42 million VND (191.39 USD), while that of those in Region II – covering Hanoi and HCM City's rural areas, along with major urban areas in the country like Can Tho, Da Nang and Hai Phong – will be 3.92 million VND.

Workers in Region III, or provincial cities and the districts of Bac Ninh, Bac Giang and Hai Duong provinces, will earn at least 3.43 million VND a month, while those in Region IV, or the rest of the country, will receive a minimum of 3.07 million VND.

The regional minimum wage is the lowest amount paid to an employee performing the simplest job in normal working conditions and carrying out their job as required.

Other allowances, supplemental pay, subsidies or bonuses decided by enterprises are paid according to terms and conditions of labour contracts, collective labour agreements or statutes of enterprises.

Currently, the regional minimum wage specified in Decree No. 90/2019/ND-CP is applied to employees working in enterprises of all types from January 1, 2020 by the four regions./.

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