Proposing to increase the regional minimum wage by 6% from July 1
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On May 20, the Ministry of Labour, Invalids and Social Affairs began to collect opinions from 29 ministries, agencies, and associations on the draft decree regulating the rate of unemployment. minimum wageapplied to employees working under contracts in enterprises.
In the draft report, the Ministry of Labor, War Invalids and Social Affairs proposed to stipulate the minimum monthly wages in 4 regions: Region I is 4,680,000 VND/month; Region II is 4,160,000 VND/month; Region III is 3,640,000 VND/month and region IV is 3,250,000 VND/month.
The above-mentioned minimum salary increases by 6% on average (corresponding to an increase of VND 180,000 – VND 260,000) compared to the current minimum wage. The Ministry proposed the time to stipulate the time to implement the minimum wage from July 1, 2022 as the National Wage Council has recommended to the Government.
According to the Ministry of Labor, War Invalids and Social Affairs, the determination of the above minimum wage adjustment is based on an increase of 5.3% to ensure the minimum living standards of the population. workers and their families and increased by 0.7% to further improve wages for workers.
This adjustment includes the sharing and harmonization of the interests of employees and businesses, while paying attention to improving the lives of workers and ensuring the maintenance, restoration and development of production. business of the enterprise. 100% of the members of the National Wage Council agree and recommend to the Government to adjust this level.
Regarding the hourly minimum wage, the minimum hourly wages are regulated in four regions: Region I is 22,500 VND/hour, Region II is 20,000 VND/hour, Region III is 17,500 VND/hour, Region IV is 15,600 VND/hour .
According to the Ministry of Labor, War Invalids and Social Affairs, this is a new type of minimum wage to implement the provisions of the 2019 Labor Code. The hourly minimum wages are determined based on the conversion method. equivalent from the minimum monthly salary and standard working time as prescribed by the Labor Code.
The application of the above equivalence conversion method is suitable for the specific conditions in our country when the minimum hourly wage is first regulated, avoiding creating a disturbance in the payment of wages for employees, affecting the negative impact on the state of labor relations in the enterprise. This is the way to determine the minimum hourly wage, which is commonly applied in many countries around the world and is recommended by ILO experts for Vietnam to apply.
The National Wage Council on April 12 unanimously proposed to increase the regional minimum wage by 6% from July 1, 2022. If approved, this is the first time since the application of regional minimum wages in enterprises (in 2009), wages increase in the middle of the year instead of the beginning of the year and is expected to last for 18 months instead of 12 months as usual. rate.
The representative of VCCI agreed with the increase of 6% but was not satisfied with the time of the increase from July 1, and wanted to adjust it from January 1, 2023 to give businesses more time to prepare.
On April 14, eight business associations sent an official letter to the Government proposing to postpone the salary increase to early next year. The Vietnam General Confederation of Labor then commented, asking the associations to withdraw this proposal, in the context of a survey of 56% of workers saying wages are not enough to live on.
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