Why did 8 associations simultaneously apply for a temporary postponement of the regional minimum wage increase in 2022?

Proposal to increase regional minimum wages from January 1, 2023

On April 12, the National Wage Council voted to agree toregional minimum wage in 2022. The increase approved by the vote is 6% (from VND 180,000 to VND 260,000), up from July 1, 2021.

While workers responded to this result, many Businesses are worrieddisagree.

On April 17, 8 business associations had Official Dispatch CHH/14042022 to the Prime Minister on the proposal to increase the regional minimum wage from January 1, 2023. The official letter proposes to delay the application of the regional minimum wage increase from January 1, 2023, instead of July 1, 2021 in order to create conditions for businesses to have the best time to prepare.

8 associations including: Japan Business Association in Vietnam, Vietnam Association of Seafood Exporters and Producers, Vietnam Textile and Garment Association, Vietnam Electronic Business Association, Food and Food Association of Ho Chi Minh City. Ho Chi Minh City, Vietnam Timber and Forest Products Association, Vietnam Plastics Association, Vietnam Motorcycle Manufacturers Association.

According to the official dispatch, on April 12, the National Wage Council met and Finalize the proposal to increase the regional minimum wage from 1/7/2022 at 6%. However, the above associations realize that the time to apply the regional minimum wage increase from July 1, 2022 will cause businesses to face many difficulties.

Therefore, the associations proposed to the Prime Minister to consider and consider solutions to support businesses, delay the time of applying the regional minimum wage increase, which will be applied from January 1, 2023, in order to create favorable conditions for businesses. have the best preparation time.

Increasing the regional minimum wage too quickly, making it difficult for businesses

Explaining the reason for the proposal to postpone the adjustment of the regional minimum wage to 2023, the 8 associations said that in the two years 2020-2021, the Covid-19 epidemic broke out strongly and unpredictable developments had a serious impact. important to all aspects of the business, making it very difficult and exhausting.

Moreover, at present, the situation of employees being F0 continues to occur, businesses are struggling to cope with that situation and subsequently the post-Covid situation, seriously affecting the productivity of enterprises. .

On the other hand, in the near future, there may be a new wave with a new variant of the Covid-19 epidemic, affecting businesses. The average consumer price index (CPI) in 2021 only increased by 1.84% compared to 2020 and did not affect the lives of workers too much and the State is also trying to control inflation.

The enterprise could not manage to change the business strategy and production plan in time because the time was too close, because all production plans, finance and orders of the enterprise were built from the end of the previous year. .

“Currently, all businesses have implemented salary increases in early 2021 and 2022. At the same time, contracts with partners including commodity prices … have all been closed and signed with partners since the beginning of the year, so they cannot be increase the selling price of goods,” the official letter said.

The associations also said that raising wages in the middle of the year like this July will push businesses into a very difficult situation, many businesses have to cancel contracts because of uncertain costs, affecting work. and employee income and business survival.

Many businesses are at risk of having to cut workers, suspend or reduce production, or even go bankrupt because they cannot afford to pay labor costs. This easily leads to the possibility of tens of thousands of workers without jobs.

Exchange after the second meeting of National Wage Council On April 12, Mr. Hoang Quang Phong, Vice Chairman of the Vietnam Confederation of Commerce and Industry (VCCI) also said that businesses all want to have the minimum wage adjustment from the beginning of 2023, and if it increases From July 1, 2022, enterprises must adjust their production and business plans.

According to Mr. Le Van Thanh – Chairman of the National Wage Council, Deputy Minister of Labour, Invalids and Social Affairs, the Council voted unanimously on the proposal level as well as the time to apply the salary increase, in which 15/17 members of the Council. agreed to increase the regional minimum wage from July 1, 2022, applied until the end of 2023, only 2/17 members chose the salary increase plan from January 1, 2023.

Due to the principle of majority decision, the National Wage Council unanimously proposed the increase time from July 1, 2022, to apply until December 31, 2023.

Mr. Thanh said: “This is not a high increase, but it ensures the concessions of the parties. Workers have the conditions to improve their lives somewhat after a long time of difficulties due to Covid-19. Employers can also rebalance the budget, ensure production recovery and stabilize human resources.