Consider increasing regional minimum wages accordingly

Mr. Le Dinh Quang - Deputy Head of the Legal Policy Department (Vietnam General Confederation of Labor) said that the General Confederation always hopes to soon increase the regional minimum wage for workers. However, the first meeting of the National Wage Council has agreed to review and propose a suitable plan to recommend to the Government in the fourth quarter of this year.

Regarding the reason for postponing the draft decree on regional minimum wages next year, a representative of the Ministry of Labor, War Invalids and Social Affairs said that although the economic situation in the second and third quarters showed signs of improvement, the global socio-economic and security situation was still complicated and unpredictable, with significant impacts on the Vietnamese economy.

Domestic enterprises are facing many difficulties due to sharp decline in exports and stagnant investment in the business sector. The textile, footwear, wood processing, electronics, and seafood industries have seen sharp declines in orders and high input costs, so they have had to reduce working hours and jobs and have workers take turns taking time off.

The latest increase in minimum wage was on July 1, 2023. The regional minimum wage in 2024 is being reviewed and evaluated by members of the National Wage Council based on actual wages, workers' lives and business operations. Currently, some businesses have reduced orders, so they have to cut jobs and workers.

Cautious assessment

Mr. Pham Minh Huan, former Deputy Minister of Labor, War Invalids and Social Affairs, said that everyone wants to increase the regional minimum wage, but with the current difficult situation, businesses are lacking orders, so if the wage is increased, will businesses be able to bear it?

According to Mr. Huan, in the context of unemployment, we must consider whether to increase wages or choose jobs, or both. If we increase wages too much, businesses that are already struggling will be burdened.

“Regional minimum wages must be increased, but we should consider the appropriate level and timing. Due to the current difficult labor market, job creation must be prioritized,” said Mr. Huan.

Ms. Nguyen Thi Lan Huong, former Director of the Institute of Science - Labor and Social Affairs (Ministry of Labor, War Invalids and Social Affairs) said that because the economy is recovering slowly, if the minimum wage is increased immediately, a large number of businesses will leave the market.

Nowadays, most businesses pay higher than the minimum wage, so it is not necessary to increase wages every year. The root problem is to increase labor productivity and work efficiency. This is an indirect way to increase income for workers.