National Wage Council meeting: Will the minimum wage increase by 5-6%?

Ahead of the first negotiation session of the National Wage Council, both the Vietnam General Confederation of Labor and the Vietnam Chamber of Commerce and Industry (VCCI) are keeping their proposed rates secret.

According to experts, adjusting the minimum wage needs to be consistent with the economic and social situation, ensuring the rights of both workers and business owners.

Discussing this issue, former Deputy Minister of Labor, Invalids and Social Affairs Pham Minh Huan said that in negotiating minimum wages, it is necessary to meet the minimum living standards of workers.

“Resolution No. 27-NQ/TW continues to affirm and implement adjustments to increase regional minimum wages in accordance with the socio-economic development situation and the payment capacity of enterprises so that by 2020 the minimum wage will ensure the minimum living standards of workers.

Based on the Labor Law, the minimum wage increase will be affected by factors such as: Minimum living needs, socio-economic situation, economic growth, employment, GDP index, labor productivity, business endurance, price index, wage level in the market... The parties will base on these factors to propose the minimum wage increase", Mr. Huan analyzed.

This expert also said that many businesses do not want to increase the regional minimum wage, but still need to ensure the actual and legitimate needs of workers.Increasing wages will be one of the factors that increase workers' income, creating better quality jobs.

Besides, Mr. Pham Minh Huan also noted that increasing the minimum wage is to protect vulnerable workers but still needs to pay attention to the payment capacity of businesses.

Commenting on the 2019 regional minimum wage adjustment, the former Deputy Minister said that wage increase is inevitable.

“The 2019 salary may increase by 5-6% compared to the 2018 minimum wage,” Mr. Huan predicted.

Sharing the same view, Ms. Nguyen Thi Lan Huong - former Chairwoman of the National Wage Council, former member of the National Wage Council, former Director of the Institute of Labor Science and Social Affairs (Ministry of Labor, Invalids and Social Affairs) - said that the increase should also be maintained at 5 - 6%.

Ms. Huong analyzed that, in principle, the minimum wage increase rate should be lower and only equal to 70% of the labor productivity increase. Therefore, if GDP in 2019 increases by 6.5 - 7%, the minimum wage increase should only stop at 5 - 6%.

Besides, this expert also believes that the adjustment of minimum wage should be limited to the current "leveling" direction, but should pay attention to the original meaning to ensure the lowest floor level for workers.

"It was thought that the minimum wage increase was only for workers without technical expertise, but now it is increasing for all workers. Thus, those with higher salary coefficients and higher job positions will benefit more," Ms. Huong pointed out./.