Expected to complete Decree on minimum wage for workers in May 2024

On December 20, 2023, the National Wage Council held its second meeting on the plan to increase the minimum wage in 2024. After a morning of sharing and discussion, 16/16 members in attendance agreed to increase the regional minimum wage by 6% from July 1, 2024.

Members of the National Wage Council also assessed that recently, workers' lives have been extremely difficult due to lack of orders and price fluctuations.

But with the strong direction of the Party, National Assembly, Government, ministries and branches, especially the participation of the entire business system, people and workers, our economy , although facing many difficulties, has achieved GDP growth of over 5% - this is a high level compared to other countries.

Our country has bright spots in the economy, controlling inflation below 4%, completing three strategic breakthroughs (institutions, infrastructure development, human resource development)...

According to the provisions of the Labor Code, the minimum wage is adjusted based on the minimum living standards of workers and their families; the correlation between the minimum wage and the market wage.

The minimum wage is adjusted based on the consumer price index, economic growth rate; labor supply and demand; employment and unemployment; labor productivity and business affordability.

The Government decides and announces the minimum wage based on the recommendations of the National Wage Council.

In Resolution No. 01/NQ-CP on key tasks and solutions for socio-economic development and the State budget in 2024, the Government has clearly stated the need to synchronously, comprehensively and effectively implement salary policy reform in accordance with Resolution No. 27-NQ/TW dated May 21, 2018 of the Central Executive Committee on salary policy reform for cadres, civil servants, public employees, armed forces and employees in enterprises.

At the same time, complete the construction of job positions for cadres, civil servants and public employees in the state administrative system before March 31, 2024; at the same time, clearly define the responsibilities of each ministry, branch, locality and head as a basis for implementing salary policy reform from July 1, 2024.

The Government has assigned the Ministry of Labor, War Invalids and Social Affairs to complete the Government Decree regulating the minimum wage for employees working under labor contracts in May 2024.

In addition, the current social allowance of 360,000 VND/month is considered low. Therefore, along with salary reform, the Ministry of Labor, War Invalids and Social Affairs proposed to increase the social allowance standard from 360,000 VND to 500,000 VND or 750,000 VND.

Regarding the regional minimum wage for workers, National Assembly delegate Tran Thi Dieu Thuy (HCMC Delegation) said that if we continue to delay and let workers struggle with their current income, workers will not be able to continue to stay in big cities, they will be forced to return to their hometowns - where they lived and grew up - to return to their old jobs.

Therefore, delegate Tran Thi Dieu Thuy proposed that the Government should consider and soon direct policies related to salary increases, including salary increases for the state sector and regional minimum wages for the production labor sector, thereby helping workers and creating confidence for them to continue to stick with production in areas with a high concentration of industrial parks and export processing zones such as Ho Chi Minh City.

Expected monthly minimum wage in 4 regions, applied from July 1, 2024 as follows:

Minimum wage in region I is 4,960,000 VND/month (increase of 280,000 VND);

Minimum wage in region II is 4,410,000 VND/month (increase of 250,000 VND);

Minimum wage in region III is 3,860,000 VND/month (increase of 220,000 VND);

Minimum wage in region IV is 3,450,000 VND/month (increase of 200,000 VND).

- The minimum hourly wage is also expected to increase by 6%, from July 1, 2024:

Minimum hourly wage in region I is 23,800 VND/hour (increase of 1,300 VND);

Minimum hourly wage in region II is 21,200 VND/hour (increase of 1,200 VND);

Minimum hourly wage in region III is 18,600 VND/hour (increase of 1,100 VND);

Minimum hourly wage in region IV is 16,600 VND/hour (increase of 1,000 VND).

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