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VGCL proposes 11% increase in minimum wage

Update: July, 14/2016 - 19:00
Illustrative image. The Việt Nam General Confederation of Labour (VGCL) has asked the National Salary Council to increase regional minimum wages in 2017 by 10-11 per cent from the current rates.— Photo vietnamplus.vn
Viet Nam News

HÀ NỘI — The Việt Nam General Confederation of Labour (VGCL) has asked the National Salary Council to increase regional minimum wages in 2017 by 10-11 per cent from the current rates.

Lê Đình Quảng, deputy head of the labour friendship department under VGCL, said the proposal was carefully made with a view to harmonise businesses’ economic situation with workers’ daily needs.

Surveys conducted by VGCL showed that only eight per cent of workers had income that could help them meet their demands and also save some money; about 20 per cent of the workers had income below their living standards; and the rest were struggling to make ends meet, Quảng said.

He said an annual wage increase might cause difficulties for businesses, while the current wage helped workers to cover 80 per cent of their basic demands.

The VGCL wanted the regional minimum wage road map to ensure that the basic demands of labourers and their families were met, he said.

Phạm Minh Huân, deputy minister of labour, invalids and social affairs, said the negotiation on wage hikes in 2017 would not be as difficult as it had been in previous years, as the gap between the wage proposals had been narrowed.

The Việt Nam Garment and Textile Association has proposed there should not be a minimum wage hike, while the Viet Nam Chamber of Commerce and Industry (VCCI) has suggested a low rate of increase and VGCL has revised its wage increase proposal.

The regional minimum wage increase in 2017 would not be as high as the 12.4 per cent increase this year, Huân said.

The National Salary Council would decide on a wage hike at a meeting later this month, before submitting a final plan to the government for approval, he said.

Last year, the government decided to raise the minimum wage in 2016 by 12.4 per cent.

Accordingly, from January 1, 2016, the minimum wages range between VNĐ2.4-3.5 million (US$108-157), depending on geographical zone.

The wage hike was agreed upon after several negotiations between VGCL, which represents employees, and VCCI, which represent employers.

The two sides had failed to agree on how much the wages should be raised as VCCI had asked for a hike of no more than 10 per cent, while the VGCL had requested a 16.8 per cent increase. — VNS

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