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Minimum wage likely to remain unchanged in 2021

Update: August, 06/2020 - 15:20

 

The region-based minimum wage will not be adjusted in 2021, according to the National Wage Council. — VNA/VNS Illustrative Photo

HÀ NỘI — A top official has called for the minimum wage to be unchanged in 2021.

The region-based minimum wage should not be adjusted in 2021, according to Deputy Minister of Labour, Invalids and Social Affairs Lê Văn Thanh, chairman of the National Wage Council.

The minimum monthly wage for workers in Region I, which covers Hà Nội and HCM City's urban areas, is currentlyVNĐ4.42 million (US$191.39), Region II – covering Hà Nội and HCM City's rural areas, along with major urban areas like Cần Thơ, Đà Nẵng and Hải Phòng – will be VNĐ3.92 million.

Those in Region III, or provincial cities and the districts of Bắc Ninh, Bắc Giang and Hải Dương provinces, earn at least VNĐ3.43 million a month, while Region IV, or the rest of the country, will receive a minimum of VNĐ3.07 million.

The regional minimum wage has applied to employees working in enterprises of all types from January 1, 2020.

Thanh said a proposal to not increase the region-based minimum wage in 2021 will be submitted to the Government for further consideration.

At a meeting of the National Wage Council in Hà Nội on Wednesday, the Việt Nam General Confederation of Labour (VGCL) proposed two options.

In the first option, the minimum wage would increase by an average of 3.95 per cent from July 1, 2021.

The second option would see minimum wage increase by 2.5 per cent from January 1, 2021.

After negotiations, the VGCL suggested the time of adjusting the salary increase should be reviewed.

Lê Đình Quảng, deputy director of the Department of Labour Relations, from the VGCL, said the adjustment of wages depends greatly on the recovery of the economy after the impact of the COVID-19 pandemic and the world economic situation.

"Next year, the National Wage Council will hold a meeting and consider whether to adjust or not," said Quảng.

Hoàng Quang Phòng, vice president of Việt Nam Chamber of Commerce and Industry (VCCI), said enterprises are facing a lot of difficulties and cannot afford to raise the minimum wage.

Labourers need to share these difficulties with businesses, he said.

The regional minimum wage is the lowest amount paid to an employee performing the simplest job in normal working conditions and carrying out their job as required.

Other allowances, supplemental pay, subsidies or bonuses decided by enterprises are paid according to terms and conditions of labour contracts, collective labour agreements or statutes of enterprises. — VNS

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