The proposal to increase the minimum wage by 6 months, effective from July 2024, has been finalized.

Proposals include increasing the regional minimum wage by 6.5% - 7.3%, effective from July 1, 2024.

The National Wage Council recently held its second meeting of 2023 to discuss and negotiate a plan for adjusting the regional minimum wage in 2024.

According to Mr. Ngo Duy Hieu, Vice President of the Vietnam General Confederation of Labor (VGCL) and Vice President of the National Wage Council, at this meeting, representatives of the workers proposed increasing the regional minimum wage by 6.5% - 7.3%, effective from July 1, 2024.

"The two proposed levels were put forward based on an assessment of the economic and social situation, taking into account various aspects, including the responsibility shared with employers. It is hoped that all parties will find common ground to finalize a suitable regional minimum wage that meets the needs of workers."

"Given that salaries for civil servants, public employees, and the armed forces will increase from July 1st next year, adjusting the salaries of workers at the same time is appropriate," said Mr. Ngo Duy Hieu.

Explaining why the proposed increase this time is higher than in the previous meeting, Vice President of the Vietnam General Confederation of Labor Ngo Duy Hieu said that the socio-economic situation is showing signs of improvement. Meanwhile, the goal of increasing the minimum wage from January 1, 2024, could not be achieved due to legal procedures.

"If we postpone the salary increase for a period of time (6 months), we need to increase the rate of increase to compensate for the workers. We agree with increasing the regional minimum wage at the same time as the salary increase in the public sector to ensure consistency and demonstrate shared responsibility in both sectors," Mr. Ngo Duy Hieu informed.

Agreement reached to increase regional minimum wage on July 1, 2024.

The plan proposed by the Vietnam General Confederation of Labor.

While agreeing with the need to adjust the regional minimum wage as desired by the labor representative organization, Mr. Hoang Quang Phong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) and Vice President of the National Wage Council, believes that the increase proposed by the Trade Union is not appropriate for the current situation.

"We agree that the minimum wage needs to be adjusted. However, 6% is too high, so in my personal opinion, around 4% would be more reasonable," Mr. Phong commented.

A representative from the Vietnam Chamber of Commerce and Industry (VCCI) stated that adjustments are necessary in the near future, because when salaries in the public sector are adjusted, the private sector also needs to follow suit. However, in the current context, businesses are also facing difficulties, and many are even struggling to maintain employment for their workers.

Mr. Hoang Quang Phong analyzed that both domestic and international markets are facing difficulties, affecting the operations of businesses, especially export businesses. In addition, the international situation is impacting supply chains, leading to a decrease in business orders and a reduction in employment for workers.

Many businesses are still exiting the market. Besides the goal of retaining jobs, businesses must also consider adjusting employee benefits based on their capacity to cope and their ability to pay.

Meanwhile, Mr. Le Dinh Quang, Deputy Head of the Policy and Legal Affairs Department of the Vietnam General Confederation of Labor, said: "During the morning session's discussions, the Vietnam General Confederation of Labor proposed two options; while the employers' side proposed a minimum increase of no more than 5%. Regarding the timing, the parties agreed to increase the regional minimum wage on July 1, 2024."

The plan to increase the regional minimum wage has been finalized at an average increase of 6%, effective from July 1, 2024.

Concluding the meeting, after listening to the opinions of the relevant parties, Mr. Le Van Thanh, Deputy Minister of Labor, Invalids and Social Affairs and Chairman of the National Wage Council, stated that all members of the National Wage Council present at the meeting voted to finalize the 2024 regional minimum wage increase at 6%, effective from July 1, 2024.

Mr. Ngo Duy Hieu, Vice President of the Vietnam General Confederation of Labor and Vice President of the National Wage Council, assessed: "The 6% increase is appropriate in the context of workers sharing the difficulties faced by businesses."

In addition, "this increase basically meets the minimum living standard of workers," the Vice President of the Vietnam General Confederation of Labor stated.

With this increase in the regional minimum wage, the Vietnam General Confederation of Labor will continue to promote and encourage workers to improve productivity and help businesses overcome difficulties.

In addition, businesses need to continue expanding their markets and increasing orders so that workers have jobs in the coming period.

From the perspective of employers' representatives, Mr. Hoang Quang Phong, Vice President of the Vietnam Federation of Trade and Industry and Vice President of the National Wage Council, stated that at the second meeting, the proposal from the workers' representatives included a higher rate than the rate finalized by the National Wage Council (6%).

Employers initially proposed a lower rate. After extensive discussion, a 6% increase was agreed upon and submitted to the competent authority, leading to the issuance of a Decree for implementation.

Mr. Phong expressed his "dissatisfaction" with this increase because the business community is facing significant difficulties, especially in the industrial, commercial, and service sectors; and predicted that 2024 will remain challenging.

However, Mr. Phong shared that the National Wage Council operates on the principle of consensus. Once the Council has reached an agreement, businesses and employers must comply with and strictly adhere to what has been approved.

"This also reflects empathy and understanding between employers and employees, based on the principle of harmonious benefits and shared risks. Employers expect employees to be empathetic and understanding," Mr. Phong expressed.

(VTV)

Source: https://baoninhbinh.org.vn/chot-de-xuat-tang-6-luong-toi-thieu-tu-thang-7-2024/d2023122114030301.htm