Regional minimum wage to rise 6% from July

The National Wage Council's meeting on Tuesday announced an increase in the regional minimum wage

The National Wage Council announced on Tuesday that the regional minimum wage will rise by six percent from July 1, 2022.

This increase is equivalent to a rise of VND180,000-260,000 (US$7.86-11.36), which varies between regions.

Specifically, monthly minimum wages in Region 1, which covers Ha Noi and Ho Chi Minh city’s urban areas, will be VND4.68 million ($203) per person; and in Region 2, covering Ha Noi and Ho Chi Minh city’s rural areas, along with major urban areas in the country like Can Tho, Da Nang and Hai Phong, will be VND4.16 million per person.

Those in Region 3, or provincial cities and districts of Bac Ninh, Bac Giang and Hai Duong provinces, will earn at least VND3.64 million a month; and in Region 4, or the rest of the country, will receive a minimum of VND3.25 million a month.

"This change in minimal wage hopefully will ensure the livelihoods of most workers," said Le Van Thanh, Deputy Minister of Labour, Invalids and Social Affairs. "The increase is not high, but it harmonises the will of the employees and the employers."

Deputy Minister Thanh also informed that this wage-raising plan would be sent to the Government to be decided and enacted as soon as possible.

"We are not happy with these changes because they did not reflect the common will of the business community," said Hoang Quang Phong, Deputy Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), "We expect the changes to be made from January 2023, rather than July 2022, because they will cause disruptions in business plans of 2022. However, 15 of 17 of our members have agreed with the National Wage Council's plan."

The employee's side, however, has other ideas. "As representatives for the workers, we expected the minimum wage increase to be around 7-8 percent," said Ngo Duy Hieu, Deputy Chairman of the Vietnam General Confederation of Labour, "But in the context of the pandemic, this increase of 6 percent shows the commitment of both sides, the workers and the businesses, to overcome the difficulties together."

"An increase in wages will definitely be a helpful boost to the workers' productivity and create sustainable growth for businesses," said Hieu.

VNS