Proposal to increase regional minimum wage by 450,000 VND

The Vietnam General Confederation of Labor has just announced that the results of its survey on wages and income show that the lives of workers in 2017 still face many difficulties and need to be improved.

Specifically, 51.3% of workers have an income that is just enough to cover their living expenses; 20.6% said they have to spend frugally and austerely; 12.0% have income that is not enough to live on, and only 16.1% of workers can save from their income.

In particular, some industries with low wages and incomes have experienced "strikes", for example, the textile industry had 69 strikes (accounting for nearly 51.8%), and the footwear industry had 30 strikes (accounting for nearly 22.5%).

Meanwhile, assessing the level of satisfaction with salary and income, the survey results showed that only 22.7% of employees felt satisfied; 52.4% were somewhat satisfied; 24.9% were dissatisfied. In addition, up to 54% of employees said that their salary and wages were not commensurate with the labor they put in.

Proposal to increase regional minimum wage.

According to the Vietnam General Confederation of Labor (VGCL), the survey results also show that most of the income of workers must cover daily living expenses. Without overtime and support from businesses, workers' salaries are very low, life is difficult and there is no savings.

From the above survey results, the Vietnam General Confederation of Labor proposed an increase in the regional minimum wage in 2018 from 370,000 to 450,000 VND, equivalent to 13.3% compared to the minimum wage in 2017.

Previously, on June 27, the National Wage Council held its first meeting to discuss the 2018 regional minimum wage increase. Many different wage increase options were proposed for discussion.

The council's technical department proposed three levels, specifically increasing from 130,000 VND to 180,000 VND (5%); two are 160,000-220,000 VND (6%) and 180,000-250,000 VND (6.8%).

However, based on the above living standards of workers, the Vietnam General Confederation of Labor proposed an absolute increase of VND370,000-450,000 (13.3%). Meanwhile, the representative of employers - the Vietnam Chamber of Commerce and Industry (VCCI) said that businesses are facing fierce competition and shrinking production, so the proposed increase of less than 5% is reasonable.

"The level below 5% as proposed by VCCI only ensures compensation for inflation, meaning no increase. Meanwhile, the regional minimum wage, although adjusted to increase annually, still does not ensure a minimum living standard for workers," a representative of the Vietnam General Confederation of Labor affirmed.

After discussion, the parties agreed that the increase should harmonize interests, both solving the difficulties of employees and being suitable to the capabilities of the enterprise to increase competitiveness. Therefore, the increase will be met by the council and gradually adjusted in the following sessions in the coming time.

According to PLO