Prime Minister appoints new Chairman of National Wage Council

The Prime Minister has just signed Decision 236/QD-TTg appointing Deputy Minister Doan Mau Diep to hold the position of Chairman of the National Wage Council, replacing Mr. Pham Minh Huan who has retired. Thus, Mr. Doan Mau Diep will officially lead the Negotiation Sessions to increase the minimum wage this year.

Deputy Minister Doan Mau Diep was assigned to hold the position of Chairman of the National Wage Council from February 17, 2017.

Assessing the 2017 regional minimum wage, many labor and employment experts believe that the wage only meets about 80% of the minimum living standards of workers.

Also related to the development of the 2018 regional minimum wage increase, Mr. Pham Minh Huan - former Chairman of the National Wage Council, former Deputy Minister of Labor, Invalids and Social Affairs - commented to Dan Tri reporter that there will likely be two scenarios for the development of the 2018 minimum wage increase.

“A good scenario with a similar increase of about 7.3% - as the proposed increase for 2017. This must be accompanied by factors such as: The general production situation does not fluctuate in a too unfavorable direction, the Government manages the macro economy well and continues to control inflation. At the same time, the consumer price index occurs according to the assessment of the National Assembly Resolution. At that time, the proposed increase as above is appropriate” - Mr. Pham Minh Huan said.

In addition, the former Chairman of the National Wage Council also noted the second scenario, when the situation may not be favorable: "However, it is too early to conclude at this time, we need to monitor to have an exact answer around May and June."

Explaining the two scenarios for increasing the regional minimum wage in 2018, Mr. Pham Minh Huan added: Vietnam's economy is mainly based on exports. Meanwhile, many large countries such as the US are changing their economic policies. It is predicted that this will have a significant impact on the exports of many countries, including Vietnam.

“Meanwhile, labor-intensive export enterprises such as footwear, garment, electronics, etc. identify minimum wages as a factor that significantly affects the “input” costs of the enterprise. Therefore, we must closely monitor the situation to consider decisions based on the balance between the “health” of the enterprise and the lives of the workers,” said Mr. Pham Minh Huan.

According to information provided to the press by the Ho Chi Minh City Labor Federation, up to now, 7,116 enterprises have adjusted the regional minimum wage in 2017 with an increase of 180,000 - 250,000 VND.

Also in February, the Ministry of Labor, Invalids and Social Affairs requested the People's Committees of provinces and centrally run cities to review the implementation of the regional minimum wage in 2017 to have a basis for proposing adjustments to the regional minimum wage in 2018. The report is expected to be completed before April 30.

According to Dan Tri