Proposal to adjust the minimum wage to increase by 6% from July 1, 7

Illustrated photo. (Source: Internet)

It is necessary to consider adjusting the minimum wage

The Ministry of Labor, War Invalids and Social Affairs said that Decree No. 38/2022/ND-CP dated June 12, 6 regulates the minimum salary for employees working under labor contracts applicable from June 2022, 01. July 07, 2022, in which: (i) The monthly minimum wage is adjusted to increase by an average of 6% compared to 2020, with the following levels: region I is 4.680.000 VND, region II is 4.160.000 VND, region III is 3.640.000 VND, region IV is 3.250.000 VND; (ii) The hourly minimum wage was issued for the first time, with the following levels: 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 .

However, according to the Ministry of Labor, War Invalids and Social Affairs, up to now, there are a number of issues that need to be considered to adjust the minimum wage specified in Decree No. 38/2022/ND-CP.

Specifically, socio-economic factors, labor market, and business capabilities in 2023 will change in a more positive direction compared to 2022: The macroeconomy continues to be stable, with rapid growth. Economic growth (GDP) reached 5,05%; The labor market continues to maintain its recovery momentum; Business productivity of enterprises tends to be better; Wages and income of workers continue to be stable and increase, each quarter is higher than the previous quarter.

The actual value of the minimum wage in Decree No. 38/2022/ND-CP gradually declines over time due to the increase in consumer price index (CPI). With an expected CPI increase of 2024% - 4% in 4,5, the above minimum wage will no longer ensure the minimum living standard of workers and their families in the second half of 2024 (about 4% lower). .

The minimum wage is currently set by region and linked to the district-level administrative boundaries, however, up to now, some areas where the minimum wage is applied are no longer appropriate due to changes in administrative boundaries (changing the minimum wage). name, new establishment, merger, dissolution) after restructuring according to the Resolutions of the National Assembly Standing Committee; or there are changes in infrastructure conditions, labor markets, investment attraction policies, etc., and need to be reviewed and updated.

On January 12, 01, the National Wage Council issued report No. 2024/BC-HDTLQG to the Government recommending adjusting the minimum wage to an average increase of 02%, applicable from July 6, 01.

From July 01, 7, the salary policy will be comprehensively reformed according to Resolution No. 2024-NQ/TW dated May 27, 21 of the Seventh Conference of the Central Executive Committee, term Public sector salaries will increase, accordingly, there needs to be an adjustment in the minimum salary level of the corporate sector to ensure general correlation.

From the above reality, according to the Ministry of Labor, War Invalids and Social Affairs, the development of a Decree stipulating the minimum wage to apply in 2024 is very necessary, to ensure the minimum living standard of workers, increase workers' salaries in accordance with labor productivity, economic growth, and enterprise competitiveness as prescribed in Article 91 of the 2019 Labor Code; Update and adjust the zoning of areas where minimum wages are applied to suit the actual situation.

Adjust the minimum wage to increase by 6%

In the draft Decree stipulating the minimum wage for employees working under labor contracts, the Ministry of Labor, War Invalids and Social Affairs proposes to adjust the minimum wage by 6% compared to the current level to Applicable from July 01, 7.

In particular, regarding the minimum wage, the Ministry of Labor, War Invalids and Social Affairs proposed to regulate monthly minimum wages in 4 regions: Region I is 4.960.000 VND/month, Region II is 4.410.000 VND/month. month, region III is 3.860.000 VND/month, region IV is 3.450.000 VND/month.

According to the Ministry of Labor, War Invalids and Social Affairs, the above minimum wage increased from 200.000 VND - 280.000 VND (corresponding to an average rate of 6%) compared to the current minimum wage. The above-mentioned minimum wage adjustment is about 2% higher than the minimum living standard of workers until the end of 2024 to improve workers' lives; It is expected to basically ensure the minimum living standard in 2025 (pre-calculating a part of 2025's CPI into the minimum living standard so that workers can enjoy it right from mid-2024). This level of adjustment shares and harmonizes the interests of workers and businesses, paying attention to improving the lives of workers and ensuring the maintenance, recovery and development of production. enterprise's business. 100% of members of the National Wage Council agreed and recommended to the Government to adjust to this level.

Minimum hourly wage

The Ministry of Labor, War Invalids and Social Affairs proposes to regulate hourly minimum wages in four regions: region I is 4 VND/hour, region II is 23.800 VND/hour, region III is 21.200 VND/hour, region IV is 18.600 VND/hour.

According to the Ministry of Labor, War Invalids and Social Affairs, the hourly minimum wage continues to be determined based on the equivalent conversion method from the monthly minimum wage and standard working time according to the provisions of the Labor Code. This is the method that ILO experts have recommended that Vietnam choose and have used when calculating the 2022 hourly minimum wage. 100% of National Wage Council members agreed and recommended adjustments to the Government. according to this level.