Many National Assembly deputies support increasing the minimum wage from July 1 to ensure the living standards of workers and stimulate consumption.
During a socio-economic discussion at the National Assembly on June 1, Mr. Pham Trong Nghia (a member of the Social Affairs Committee) asked the Government to direct the National Wage Council to soon negotiate an increase in the minimum wage, ensuring living standards of workers and families. Enterprises should understand and share with employees. “The government should also assign an independent agency to publish or critique the minimum standard of living announced by the statistical agency, increasing objectivity and science,” he said.
According to a representative of Lang Son province, workers who work part-time or part-time are a weak and vulnerable group with little benefit from social welfare. It is expected that the hourly minimum wage will range from VND 15,600 to VND 22,500, which is “too low”. The government needs to adjust the minimum hourly wage much higher than the average monthly minimum wage.
“Although the State and society have many supportive policies, most workers still fall into very difficult circumstances during and after the Covid-19 pandemic,” Nghia said, citing an investigation by the Institute of Workers and Industry. The 2021 cohort shows that 5% of respondents only eat meat and fish once or twice a week; 34% eat meat, fish three times a week; 41% can only afford some basic drugs. Many people do not dare to go to the doctor because they cannot afford to pay.
The Labor Code stipulates that the minimum wage is the lowest level paid to the simplest workers in normal conditions, in order to ensure a minimum standard of living for them and their families. But in fact, according to a survey of the Vietnam General Confederation of Labor, only 55% of workers have a salary and a living income; 25% have to spend frugally; 13% do not have enough to live on.
During the two years of the Covid-19 pandemic, the minimum wage did not increase. Since July 2022, the minimum wage has increased by 6%, but the inflation rate since 2020 has exceeded this number. With the recent increase in consumer prices, many after-hours workers have to do many other jobs at other workplaces, with long hours, exhausting their health.
Delegate Pham Trong Nghia speaks at the parliament. Video: National Assembly Media
The minimum wage in Region 1 (the region with the highest minimum wage) is 4.68 million VND (200 USD), lower than many countries in the region. Minimum monthly salary in Jakarta, Indonesia is 323 USD; Philippines 226 USD; Thailand $260… With such a minimum wage and human resource structure in the region, the minimum wage increase will not have much impact on Vietnam’s competitive advantage, Mr. Nghia analyzed.
On the contrary, increasing the minimum wage will restructure the economy in the direction of gradually reducing industries and fields with low added value and high labor deficit; contribute to ensuring the life of workers and their families. This is also a solution to stimulate consumption and stimulate the economy.
Agreeing with Mr. Nghia, Major General Nguyen Thi Xuan (Standing Member of the National Defense and Security Committee) also said that the proposal to increase the regional minimum wage from July is correct and necessary. Enterprises have to increase costs but will have more motivation to recover and develop production and business.
Representative Nguyen Thi Xuan. Image: National Assembly Media
According to a female delegate from the Dak Lak delegation, before 2020, it is customary to increase the regional minimum wage from January 1 every year, with an increase of 5-7%. However, in the past two years, due to the impact of the epidemic, the rate of underemployment and unemployment increased; regional minimum wages do not increase; reduced income; Working life is difficult. “Labor needs to be shared in difficulties after a period of exhaustion due to the epidemic and stormy weather,” she said.
Delegate Nguyen Duy Minh (Chairman of the Da Nang Labor Confederation) also proposed that the Government have solutions to overcome the situation that employees have to withdraw social insurance once to solve difficulties after the pandemic. He also asked the relevant authorities to review the implementation of the National Assembly’s resolution on the implementation of the policy of enjoying one-time social insurance benefits for employees.
At its second meeting on April 12, the National Wage Council unanimously proposed that from July 1, the minimum wage would increase by 6%, or 180,000-260,000 more than the current one. 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.
Two days later, 8 industry associations with the largest number of employees in the country petitioned the Government delay time increase salary minimum region until January 1, 2023. The reason is that the salary increase at the beginning of July makes it difficult for businesses to manage because the time is too close.
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