National Assembly deputies support minimum wage increase from July 1
Many National Assembly deputies support increasing the minimum wage from July 1 to ensure workers' lives and stimulate consumption.
Discussing socio-economic issues at the National Assembly on June 1, Mr. Pham Trong Nghia (full-time member of the Social Committee) suggested that the Government direct the National Wage Council to soon negotiate an increase in the minimum wage, ensuring the living standards of workers and their families. Enterprises should understand and share with workers. "The Government should also assign an independent agency to announce or criticize the minimum living standards announced by the statistical agency, increasing objectivity and science," he said.
According to a delegate from Lang Son province, part-time workers are a disadvantaged and vulnerable group, with little access to social benefits. The expected hourly minimum wage will range from VND15,600 to VND22,500, which is "too low". The government needs to adjust the hourly minimum wage to be much higher than the average monthly minimum wage.
"Although the State and society have many support policies, the majority of workers still fall into very difficult circumstances during and after the Covid-19 pandemic," said Mr. Nghia, citing a 2021 survey by the Institute of Workers and Trade Unions showing that 5% of respondents only eat meat and fish once or twice a week; 34% eat meat and fish three times a week; 41% only have enough money to buy some basic medicines. Many people do not dare to go to the doctor because they cannot afford it.
The Labor Code stipulates that the minimum wage is the lowest level paid to workers who do the simplest work under normal conditions, in order to ensure a minimum standard of living for them and their families. But in reality, according to a survey by the Vietnam General Confederation of Labor, only 55% of workers have enough salary and income to live on; 25% have to spend frugally; 13% do not have enough to live on.
During the two years of the Covid-19 pandemic, the minimum wage has not increased. From July 2022, the minimum wage will increase by 6%, but the inflation rate from 2020 to now has exceeded this number. With the recent increase in consumer prices, many workers after their main work hours have to do many other jobs at other workplaces, exhausting their health.
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Delegate Pham Trong Nghia speaks at the parliament. Photo:National Assembly Media |
The minimum wage in region 1 (the region with the highest minimum wage) is 4.68 million VND (200 USD), lower than many countries in the region. The monthly minimum wage in Jakarta, Indonesia is 323 USD; Philippines 226 USD; Thailand 260 USD... With such minimum wages and human resource structure in the region, increasing the minimum wage will not have much impact on Vietnam's competitive advantage, Mr. Nghia analyzed.
On the contrary, increasing the minimum wage will restructure the economy towards gradually reducing industries and sectors with low added value and high labor shortage; contributing to ensuring the lives of workers and their families. This is also a solution to stimulate consumption and the economy.
Agreeing with Mr. Nghia, Major General Nguyen Thi Xuan (Standing Member of the National Defense and Security Committee) also said that the proposal to increase the regional minimum wage from July is correct and necessary. Enterprises will have to increase costs but will have more motivation to recover and develop production and business.
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Delegate Nguyen Thi Xuan. Photo:National Assembly Media |
According to the female delegate of Dak Lak, before 2020, according to tradition, the increase in regional minimum wages was adjusted from January 1 every year, with an increase of 5-7%. However, in the past two years, due to the impact of the pandemic, the rate of underemployment and unemployment increased; the regional minimum wage did not increase; income decreased; and workers' lives faced many difficulties. "Workers need to share the hardship after a period of exhaustion due to the pandemic and price storms," she said.
Delegate Nguyen Duy Minh (Chairman of the Da Nang City Labor Federation) also proposed that the Government find a solution to overcome the situation of workers having to withdraw their social insurance benefits at one time to solve difficulties after the pandemic. He also asked the authorities to summarize the implementation of the National Assembly's resolution on implementing the policy of receiving social insurance benefits at one time for workers.
At the second meeting on April 12, the National Wage Council unanimously proposed a 6% increase in minimum wage from July 1, an increase of VND180,000-260,000 compared to the current level. If approved by the Government, the minimum wage in region 1 will be VND4.68 million; region 2 will be VND4.16 million; region 3 will be VND3.64 million and region 4 will be VND3.25 million.
Two days later, eight industry associations with the largest number of workers in the country jointly petitioned the Government to postpone the regional minimum wage increase to January 1, 2023. The reason is that increasing wages in early July makes it difficult for businesses to cope in time due to the close timing.