Wages, price increases and workers' concerns
From July 1, 2024, workers working under contracts will receive a minimum wage increase of 6% according to Decree 74/2024/ND-CP dated June 30, 2024 of the Government. This policy makes many workers working under contracts in the province feel very excited. However, it is also necessary to ensure control of market prices when increasing wages.
More motivation to compete in production
For over a month now, the story of the new salary level has been a topic of interest to many workers and laborers in industrial zones and clusters in the province. Among them, many workers in some enterprises have received the new salary level early.
"Since July, I have received a new basic salary of 3,860,000 VND, an increase of 220,000 VND compared to the old level. Although the increase in basic salary is not high, this is the basis for calculating overtime and social insurance payments, so employees like us are very excited. Thanks to the salary increase, my total income at the company will fluctuate between 8 and 8.5 million VND in the near future, an increase of more than 1 million VND compared to before July 2024."
Mr. Hoang Cong Anh - Ironing worker of Mareep Company Limited, an FDI enterprise operating in the field of garment export, located in Dien Thinh commune, Dien Chau district
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The company currently has over 750 employees. Grasping information about the Government's policy of increasing regional minimum wages, since the end of June, the Union has successfully negotiated with the company's leaders to increase wages for employees. The wage increase helps employees have more motivation to compete in labor and production, contributing to increased productivity, work efficiency and continued long-term commitment to the company.
Mr. Duong Minh Hoang - Chairman of the Trade Union of Mareep Company Limited
Mr. Ha Huy Dong - Chairman of the Dien Chau District Labor Federation said: "As soon as Decree 74 of the Government took effect, the District Labor Federation guided and supported grassroots trade unions at enterprises to grasp the thoughts and aspirations of workers; review working standards and conditions to proactively propose and dialogue and negotiate with employers to establish agreements on wages.
After more than 1 month, through understanding and reporting from grassroots Trade Unions, for enterprises paying workers' salaries once every half month, up to now, most enterprises have paid basic salaries to employees with the correct increase and have plans to ensure timely payment of overtime allowances for July 2024 in the second half of August 2024. Enterprises paying salaries once a month also ensure payment of all salaries and bonuses to workers from the second half of August 2024 according to the new regional minimum wage.
For businesses in the Southeast Economic Zone, most of them pay salaries once a month, so it is not until mid-August that workers will receive the new salary according to Decree No. 74. However, with the news of increasing the regional minimum wage, many workers are excited because they will have more money to cover living expenses.
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Her current salary is more than 6.5 million VND/month. Normally, with this salary, if you spend sparingly, it is enough, but when the child is sick and needs a lot of expenses, it is very difficult to manage. Therefore, a salary increase will help her family to have less difficulty in life.
Ms. Le Thi Hoa, residing in Nghi Xa commune (Nghi Loc), is a worker at Kyungshin Nghe An Co., Ltd. (operating in the field of manufacturing automotive wires, located in WHA Industrial Park).
Need to ensure market control
According to Decree 74/2024/ND-CP dated June 30, 2024 of the Government regulating the minimum wage for employees working under labor contracts, the monthly minimum wage increases by 6% (from VND 200,000 to VND 280,000/month) compared to the minimum wage before July 1, 2024. Enterprises that have been implementing a minimum wage equal to or higher than the regulations in Decree 74 do not have to adjust the wage increase; enterprises that are paying wages lower than the regional minimum wage must increase wages for employees.
Pursuant to Decree No. 74/2024/ND-CP, from July 1, 2024, districts, cities and towns of Nghe An province have the following regional minimum wages:
Region II:The minimum monthly wage is 4,410,000 VND (an increase of 250,000 VND), the minimum hourly wage is 21,200 VND (an increase of 1,200 VND). Applicable to Vinh city, Cua Lo town and Nghi Loc and Hung Nguyen districts.
Region III:The minimum monthly wage is 3,860,000 VND (an increase of 220,000 VND), the minimum hourly wage is 18,600 VND (an increase of 1,100 VND). Applicable to the districts of Quynh Luu, Yen Thanh, Dien Chau, Do Luong, Nam Dan, Nghia Dan and the towns of Thai Hoa and Hoang Mai.
Region IV:The minimum monthly wage is 3,450,000 VND (an increase of 200,000 VND), the minimum hourly wage is 16,600 VND (an increase of 1,000 VND). Applicable to the districts of Anh Son, Con Cuong, Quy Chau, Ky Son, Que Phong, Quy Hop, Tan Ky, Thanh Chuong, and Tuong Duong.
When the regional minimum wage increases, many payments to employees will increase, including: Increase in severance pay if the job has to be stopped due to the employee's fault or an incident (electricity, water, fire, natural disaster, etc.); increase in minimum wage when transferring jobs; increase in social insurance contributions, accordingly, the level of social insurance benefits will also increase; increase in unemployment insurance contributions; increase in maximum unemployment benefits.
According to experts, this salary increase is appropriate because it has taken into account the payment capacity of businesses as well as the labor market. However, many workers also expressed their desire that along with the salary increase, there should be solutions to ensure control of market prices.
“The salary increase makes me and many workers very happy, but we are also worried about the price increase of many items such as: food, consumer goods, services... If market prices are not controlled, we workers will still have to cut down on spending to make ends meet.”
Mr. Hoang Cong Anh - Worker of Mareep Company Limited
