09:17 | 08/08/2017 Economy- Society
The National Salary Council (NSC) has adopted a proposal on a 6.5% rise in region-based monthly minimum wage in 2018, which will be submitted to the Prime Minister for approval.
An average rise of 6.5%, in comparison to 2017, was agreed on by the majority of the NSC members in a ballot at a negotiation meeting in Hanoi, on August 7, following the failure of the Vietnam General Confederation of Labour (VGCL) and the Vietnam Chamber of Commerce and Industry (VCCI) to find a common voice.
Accordingly, the minimum wage will be applied across four different regions in Vietnam, as follows Region I: VND 3.98 million (US$ 189); Region II: VND 3.53 million (US$ 168); Region III: VND 3.09 million (US$ 147) and Region IV: VND 2.76 million (US$131).
Vice President of the Vietnam General Confederation of Labor Mai Duc Chinh judged that the minimum wage hike has yet to satisfy employers. However, the rise has shown that laborers shared difficulties with businesses. However, the 6.5% minimum wage rise will only meet the minimum living standards until late 2020.
Vice President of the Vietnam Chamber of Commerce and Industry Hoang Quang Phong was also unsatisfied with the rise. He reported that in the first seven months of the year, over 73,000 enterprises were founded. Approximately 50,000 others were dissolved or temporally suspended. He suggested that labourers not rely on the minimum wage increase but do their upmost to improve their skills; promote labor disciplines, and raise labor productivity.
The minimum wage rise is supposed to meet 92-96% of the minimum living standards.