Will the minimum wage increase in 2025?

The Ministry of Labor, War Invalids and Social Affairs has requested provinces and cities across the country to review the application of the 2024 regional minimum wage. Localities also need to evaluate and propose adjustments to current zoning.

The above request of the Ministry of Labor, War Invalids and Social Affairs is to prepare for the proposal to the Government to adjust the regional minimum wage in 2025 in the coming time, according to the provisions of Article 91 of the Labor Code.

Regarding the increase in regional minimum wages in 2025, Mr. Ngo Duy Hieu, Vice President of the Vietnam General Confederation of Labor, said that as usual, this agency will propose an increase in regional minimum wages in March every year, after assessing the overall socio-economic situation.

However, in 2025, ministries and branches are focusing on implementing the restructuring and streamlining of the apparatus. Therefore, after the agencies complete the merger, the Vietnam General Confederation of Labor will officially propose the regional minimum wage.

The Vietnam General Confederation of Labor has compiled the employment and income situation to serve the adjustment of regional minimum wages. However, the adjustment of minimum wages depends on many factors, some of which are specialized.

In 2024, the regional minimum wage will be adjusted to increase by 6%. However, before that, from 2020 to 2023, due to the Covid-19 pandemic greatly affecting business operations, the increase in the regional minimum wage was postponed.

According to a labor and salary expert, from the perspective of employees, they always want to increase their salary. However, this must be calculated based on the harmony of interests between the two parties, which also depends on the ability to pay of the business, especially small and medium-sized companies.

Regional minimum wage cannot be abolished yet

The minimum wage has been in place in Vietnam for 12 years. Some now argue that it is necessary to aim for a living wage instead of a minimum wage.

Regarding this issue, Mr. Le Dinh Quang, Deputy Head of the Department of Legal Policy and Labor Relations (Vietnam General Confederation of Labor) said that in our country, it is still not possible to abolish the minimum wage because labor relations, as well as negotiations according to the market mechanism in Vietnam are not good and not thorough.

According to Mr. Quang, our country needs to move towards wage negotiations. However, negotiations are still weak, so it is necessary to maintain a wage council to negotiate annual increases in regional minimum wages.

Mr. Bui Sy Loi, former Vice Chairman of the National Assembly's Committee on Social Affairs, said that regional minimum wages are regulated under the Labor Code to ensure minimum wages for workers living in different regions due to price fluctuations and different needs and living conditions.

Minimum wages, according to the International Labor Organization (ILO) and national laws, are the lowest wages paid to workers doing simple work, under normal conditions, to ensure a living standard that meets the minimum needs of workers and their families. This is not the wage paid to all workers, but only the wage that cannot be paid lower to the lowest-income workers.

Normally, every year, the National Wage Council meets to advise the Government to adjust the minimum wage appropriately, to ensure the minimum living standard of workers according to the provisions of law.

The most recent time, the National Wage Council advised the Government to issue Decree 74/2024. Accordingly, from July 1, 2024, the regional minimum wage will increase by an average of 6% compared to the 2023 level.

Specifically, the regional minimum wage is currently applied specifically: Region I is 4.96 million VND/month; Region II is 4.41 million VND/month; Region III is 3.86 million VND/month; Region IV is 3.45 million VND/month.