8 associations propose to delay the minimum wage increase
Eight industry associations proposed that the Government increase the regional minimum wage from January 1, 2023 instead of July 1 this year, according to the decision of the National Wage Council.
In the petition sent to the Prime Minister and associations, the reason was that in the two years 2020-2021, the outbreak had seriously affected businesses, making them difficult and exhausted. Postponing the application of regional minimum wage increases will help businesses have the best time to prepare.
Workers of Lam Viet Wood Company in Binh Duong. Image: Dinh Trong
The associations also believe that the difficulties caused by Covid-19 have not ended as F0 workers continue to appear, a new wave of mutations still threatens production.
If raising wages at the beginning of July, it is difficult for businesses to manage because the time is too close. All of our production, financial and order plans were built at the end of the previous year, unable to increase the selling price to cover costs. Not to mention, many businesses have implemented salary increases in early 2021, 2022.
“Many businesses will have to cancel contracts because of uncertain costs, or cut workers, suspend or reduce production…”, the petition stated.
Proposing associations include Japan Business Association; Processing and exporting aquatic products; Textile; Electronic; Food in Ho Chi Minh City; Timber and forest products; Plastic; Motorcycle production. These are the industries with the largest number of employees in Vietnam.
Previously, at the second meeting on April 12, the National Wage Council agreed that, from July 1, the expected minimum wage 6% increase, ie 180,000-260,000 more than today. If approved by the Government, the minimum wage in region 1 will be 4.68 million VND; region 2 to 4.16 million; Region 3 reached 3.64 million and region 4 reached 3.25 million.
According to calculations by the Technical Department of the National Wage Council, with this option, production costs of enterprises are expected to increase by 0.5-0.6% on average, of which textiles, garments and footwear will increase. 1.1-1.2%.
In this meeting, representing employers, the Vietnam Confederation of Trade and Industry (VCCI), agreed with the salary adjustment, but wanted the time to be implemented in early 2023. VCCI proposed that the increase be within about 3-5%.
Le Tuyet
at Blogtuan.info – Source: vnexpress.net – Read the original article here
