The regional minimum wage has increased to nearly 5 million VND per month.

According to the Politburo 's conclusions on salary reform, from July 1st, along with a 30% increase in the basic salary, pensions and allowances will be adjusted upwards by 15%, and the minimum wage in the business sector will be adjusted upwards by 6% (monthly and hourly).

Workers will receive an increase in the minimum wage starting today, July 1st.

Accordingly, the average monthly salary for workers in Region I increased from 4.68 million VND to 4.96 million VND (an increase of 280,000 VND).

Region II increased from 4.16 million VND/month to 4.41 million VND/month (an increase of 250,000 VND).

Region III increased from 3.64 million VND/month to 3.86 million VND/month (an increase of 220,000 VND).

Region IV increased from 3.25 million VND/month to 3.45 million VND/month (an increase of 200,000 VND).

The minimum hourly wage also increased by 6%, reaching 23,800 VND/hour in Region I, 21,200 VND/hour in Region II, 18,600 VND/hour in Region III, and 16,600 VND/hour in Region IV.

The Ministry of Labour, Invalids and Social Affairs assesses that the increase of 200,000 - 280,000 VND, equivalent to an average rate of 6% compared to the current minimum wage, is higher than the minimum living standard for workers projected until the end of 2024, basically ensuring a minimum living standard in 2025.

The aforementioned adjustment is calculated based on practical factors as stipulated in the Labor Code, including: the minimum living standard of workers and their families; economic and labor market factors (economic growth, labor productivity, consumer prices, labor situation, employment); and factors related to market wages and the capabilities of businesses (wages, average income of workers, business development and trends in business, production, and orders).

The Ministry of Labour, Invalids and Social Affairs believes that adjusting the regional minimum wage to increase at the same time as the basic wage is essential to ensure a minimum standard of living for workers, and proposes that the Government adjust the regional minimum wage to increase by an average of 6% (from 200,000 to 280,000 VND).

Previously, the National Wage Council had submitted a report to the Government recommending an average increase of 6% in the minimum wage, effective from July 1st.

Calculations show that with a projected CPI increase of 4-4.5% in 2024, the current minimum wage will no longer guarantee a minimum standard of living for workers and their families in 2024 (approximately 4% lower).

On January 12th, the National Wage Council submitted a report to the Government recommending an average increase of 6% in the minimum wage, effective from July 1st.

In addition, socio-economic factors, the labor market, and the capabilities of businesses have changed in a more positive direction, for example: macroeconomic stability continues, the economic growth rate (GDP) in 2023 reached 5.05%, and the first quarter of 2024 is estimated to increase by 5.66% compared to the same period last year.

Furthermore, the labor market continues its recovery, and business performance is trending upwards. Workers' wages and incomes remain stable and are increasing, with each quarter surpassing the previous one.

Along with the minimum wage increase, the Ministry of Labour, Invalids and Social Affairs proposed adjusting the application areas due to the rearrangement of administrative boundaries according to resolutions of the National Assembly Standing Committee and areas with changes in infrastructure, level of labor market development, and investment attraction zones as requested by provincial People's Committees.

Source: https://thanhnien.vn/luong-toi-thieu-vung-tang-len-gan-5-trieu-dong-thang-185240628182236231.htm