Wages, rising prices, and workers' anxieties.
From July 1st, 2024, contract workers will receive a 6% increase in minimum wage according to Government Decree 74/2024/ND-CP dated June 30th, 2024. This policy has brought great joy to many contract workers in the province. However, it is also necessary to ensure price control in the market when wages are increased.
Adding motivation for production competition.
For over a month now, the issue of new wages has been a topic of interest for many workers in industrial zones and clusters throughout the province. In particular, many workers in some businesses have already received their new wages.
"Starting in July, I received a new basic salary of 3,860,000 VND, an increase of 220,000 VND compared to the previous amount. Although the increase in basic salary isn't significant, it's the basis for calculating overtime pay and social insurance contributions, so employees like us are very happy. Thanks to the salary increase, my total income at the company will soon range from 8 to 8.5 million VND, an increase of more than 1 million VND compared to before July 2024."
Mr. Hoang Cong Anh is a worker in the ironing department of Mareep Co., Ltd., a foreign-invested enterprise operating in the garment export sector, located in Dien Thinh commune, Dien Chau district.
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The company currently employs over 750 workers. Having learned about the government's policy to increase the regional minimum wage, the trade union successfully negotiated a wage increase with the company's leadership at the end of June. This wage increase motivates workers to strive for higher productivity and efficiency, contributing to increased work performance and long-term commitment to the company.
Mr. Duong Minh Hoang - Chairman of the Trade Union of Mareep Co., Ltd.
Mr. Ha Huy Dong, Chairman of the Dien Chau District Labor Union, said: “As soon as Government Decree 74 came into effect, the District Labor Union guided and supported grassroots labor unions in enterprises to understand the thoughts and aspirations of workers; reviewed labor standards and conditions to proactively propose and engage in dialogue and negotiation with employers to establish agreements on wages.”
After more than a month, based on information gathered and reports from grassroots trade unions, for businesses that pay workers their salaries bi-weekly, most have now paid basic wages to their employees at the legally mandated increase and have plans to ensure timely payment of overtime pay for July 2024 in the second half of August 2024. Businesses that pay salaries monthly have also ensured the payment of all wages 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 pay salaries once a month, so employees will only receive the new minimum wage according to Decree No. 74 from mid-August onwards. However, many workers are delighted by the news of the increase in the regional minimum wage as it provides additional funds to offset living expenses.
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Her current salary is over 6.5 million VND per month. Normally, with this salary, she can manage her expenses carefully, but when her child gets sick and needs more money, it becomes very difficult to cope. Therefore, a salary increase would help ease some of the financial difficulties her family faces.
Ms. Le Thi Hoa, residing in Nghi Xa commune (Nghi Loc district), is a worker at Kyungshin Nghe An Co., Ltd. (operating in the field of automotive wiring harness manufacturing, located in WHA Industrial Park).
Market control needs to be ensured.
According to Government Decree 74/2024/ND-CP dated June 30, 2024, which stipulates the minimum wage for employees working under labor contracts, the monthly minimum wage will increase by 6% (from 200,000 to 280,000 VND/month) compared to the minimum wage before July 1, 2024. Businesses that have been paying a minimum wage equal to or higher than the minimum wage stipulated in Decree 74 are not required to adjust wages; businesses currently paying wages below the regional minimum wage must increase wages for their employees.
According to Decree No. 74/2024/ND-CP, from July 1, 2024, the districts, cities, and towns of Nghe An province have the following regional minimum wage levels:
Region II:The monthly minimum wage is 4,410,000 VND (an increase of 250,000 VND), and the hourly minimum wage is 21,200 VND (an increase of 1,200 VND). This applies to Vinh City, Cua Lo Town, and Nghi Loc and Hung Nguyen Districts.
Region III:The monthly minimum wage is 3,860,000 VND (an increase of 220,000 VND), and the hourly minimum wage is 18,600 VND (an increase of 1,100 VND). This applies to the districts of Quỳnh Lưu, Yên Thành, Diễn Châu, Đô Lương, Nam Đàn, Nghĩa Đàn, and the towns of Thái Hòa and Hoàng Mai.
Region IV:The minimum monthly wage is 3,450,000 VND (an increase of 200,000 VND), and the minimum hourly wage is 16,600 VND (an increase of 1,000 VND). This applies 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 of the benefits for workers will also increase, including: increased wages for work stoppages caused by employee fault or incidents (electricity, water, fire, natural disasters, etc.); increased minimum wage when transferring jobs; increased social insurance contributions, leading to increased benefits under social insurance schemes; increased unemployment insurance contributions; and increased maximum unemployment benefits.
According to experts, this wage increase is appropriate as it takes into account the affordability of businesses and the labor market. However, many workers have also expressed their desire for necessary measures to control market prices alongside the wage increase.
"The wage increase has made me and many other workers very happy, but we are also worried about rising prices of many goods such as food, consumer goods, and services... If market prices are not controlled, we workers will still have to cut back on spending just to make ends meet."
Mr. Hoang Cong Anh - Worker at Mareep Co., Ltd.