2020 regional minimum wage increased by 5.5%
The 5.5% increase is expected to cover 100% of the minimum living standards for workers.
On the afternoon of July 11, the National Wage Council finalized a plan to increase the regional minimum wage in 2020 by 5.5% compared to 2019.
Accordingly, in 2020, the minimum monthly wage in region 1 will increase from 4.18 to 4.42 million VND (an increase of 240,000 VND), region 2 will increase from 3.71 to 3.92 million VND (an increase of 210,000 VND); region 3 will increase from 3.25 to 3.43 million VND (an increase of 180,000 VND); region 4 will increase from 2.92 to 3.07 million VND (an increase of 150,000 VND).
The 5.5% increase is expected to cover 100% of the minimum living standards for workers and will be submitted to the Government for decision by the National Wage Council.
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Regional minimum wage in 2020 increased by 5.5% compared to 2019. |
Participating in the meeting of the National Wage Council, with the desire to best improve the lives of workers, the Vietnam General Confederation of Labor proposed an increase of 8.18% or 7.06% (first negotiation), then added an option of increasing 6.52% in the second negotiation.
On the contrary, the Vietnam Chamber of Commerce and Industry (VCCI, representing businesses), said that it is necessary to extend the roadmap for adjusting the regional minimum wage until 2020 or only adjust the increase by 1-2%. The reason is to support businesses in improving productivity, labor quality, increasing competitiveness and sustainable development, and handling the risk of cyclical growth decline. After discussion, VCCI increased the increase to 2.5-3.5%, then 4%.
At the end of the negotiation session, the parties agreed to a 5.5% increase and reached consensus when voting.
At the first meeting in June, VCCI representatives proposed an increase of less than 2% and the Vietnam General Confederation of Labor proposed an increase of 8.1%.
The regional minimum wage is the lowest level that serves as a basis for businesses and employees to negotiate and pay wages. People who are eligible for this wage are those working under the contract regime of the Labor Code; working in enterprises established under the Law on Enterprises; cooperatives, farms, households, individuals and other organizations in Vietnam that hire workers under contracts; foreign agencies, organizations, international organizations and foreign individuals in Vietnam that hire workers.
