Labor ministry proposes delay of 2024 regional minimum wage increase

The Ministry of Labor, Invalids and Social Affairs (MOLISA) has proposed delaying a salary negotiation meeting until the fourth quarter of 2023 because there is not enough scientific and practical basis to propose a time to adjust the regional minimum wage.

Accordingly, the MOLISA has sent an official dispatch to the Government Office to delay the submission of the decree stipulating the minimum wage for employees working under labor contracts.

The ministry was assigned to develop the decree and submit it to the Government in October 2023.

The MOLISA said that the economy in the second quarter and the first months of the third quarter this year has shown signs of improvement.

However, the global and regional socio-economic and security situation continues to have complex and unpredictable fluctuations affecting Vietnam’s economy.

Businesses are facing many difficulties as exports plummet and foreign investment stagnates.

At the end of August, the National Wage Council issued a written report to the Government to consider the minimum wage plan for 2024.

It clearly stated that the economic impacts had not yet been fully evaluated and the socio-economic situation had not been predicted for the coming time, therefore, there is not enough scientific and practical basis to propose a time to adjust the regional minimum wage.

The National Wage Council asked the Government to allow a delay of the salary negotiation meeting and to postpone giving recommendations on the regional minimum wage plan until the end of the fourth quarter this year.

The ministry also suggested the Government Office to request that the Prime Minister remove the content of the Decree regulating regional minimum wages for workers from the ministry's 2023 working agenda.

The development of the decree will be carried out after the National Wage Council recommends to the Government the minimum wage plan for2024.

According to regulations, the minimum wage is the lowest wage paid to workers doing the simplest jobs under normal working conditions to ensure a minimum living standard for workers and their families compatible with socio-economic development conditions.

Currently, the minimum monthly salary is 4.68 million VND (192 USD) for workers working in enterprises in Region 1, 4.16 million VND (170.7 USD) in Region 2, 3.64 million VND (149.4 USD) in Region 3 and 3.25 million VND (133.3USD) in Region 4.

These levels have increased by 6% from before July 1, 2022 and apply until now.

The geographical classification is determined based on the employer’s place of operation.

Region 1 covers the urban areas of Ha Noi and Ho Chi Minh city; Region 2 encompasses the rural areas of Ha Noi and Ho Chi Minh city, along with major urban areas in the country such as Can Tho, Da Nang and Hai Phong; Region 3 covers provincial cities and the districts of Bac Ninh, Bac Giang and Hai Duong provinces; and Region 4 comprises the rest of the country.

VNA