Proposal to boost regional minimum salaries by 6% beginning July 1, 2022

DNHN - The National Wage Council approved and finalized the proposal to increase the regional minimum wage by 6% beginning July 1, 2022, to submit to the Government for review and determination with a majority of votes in favour.

Employees have collaborated with businesses, accompanied them, and worked alongside them to overcome obstacles and outbreaks and stabilize production and business conditions during the last two years. On the company side, it is also vital to bear responsibility for reimbursing employees' wages and income to assure their survival.

Currently, the regional minimum wage is kept at Region I is 4.42 million VND/month; Region II is 3.92 million VND/month; Region III is 3.43 million VND/month; Region IV is 3.07 million VND/month. This salary will be maintained by the Government from January 1, 2020, due to the impact of the COVID-19 epidemic. 

If applying the increase to 6%, the minimum wage in Region I will increase by 260,000 VND/month, to 4.68 million VND/month; region II increased by 240,000 VND/month, to 4.16 million VND/month; region III increased by 210,000 VND/month, to 3.64 million VND/month; Region IV increased by 180,000 VND, to 3.25 million VND/month. 

According to the Vietnam General Confederation of Labor, there are many grounds to increase wages for employees from July 1, 2022, such as: 

Under Article 91 of the Labor Code 2019: “Minimum wage is the lowest salary paid to employees who perform the simplest jobs under normal working conditions to ensure the minimum standard of living of employees. and their families, suitable for socio-economic development conditions”. 

Under Res 27-NQ/TW dated May 19, 2018, of the 7th Conference, the 12th Party Central Committee on reforming salary policy for cadres, civil servants, public employees and force armed forces and employees in enterprises, determined: "From 2021, the State periodically adjusts regional minimum wages based on recommendations of the National Wage Council"; "Adjusting the regional minimum wage to ensure the minimum living standard of workers and their families, about factors of the labour market and socio-economic development (supply - labour demand, economic growth rate, consumer price index, labour productivity, employment, unemployment,...)".

Based on the socio-economic development situation: GDP increased about 6.0-6.5% according to the Resolution on Socio-Economic Development Plan 2022 of the National Assembly, the growth rate of the consumer price index average consumption (CPI) is about 4%, social labour produclaboury increases by over 5%. 

According to the ratio of food, food, and non-food prices, certain countries' food is comparable to that of Vietnam. 

It is necessary to adjust the minimum wage to ensure the minimum living standards of employees in the context that the Government has not adjusted the minimum wage for nearly 2 years. 

 Ngọc Nguyễn