A worker at Gio Linh Textile Factory in Gio Linh, Quảng Trị. — VNA/VNS Photo Thanh Thủy

HÀ NỘI — The minimum regional wage will be raised in 2024, according to the National Wage Council in the first meeting on adjusting the minimum wage.

Three sides participated in the meeting yesterday, with the Vietnam Chamber of Commerce and Industry (VCCI) representing businesses, the Ministry of Labour, Invalids and Social Affairs (MOLISA) representing the government, and the Vietnam General Confederation of Labor (VGCL) representing the employees.

All sides agreed in principle that the minimum regional wage be raised in 2024, but delayed the final decision on how much and when it should be raised until the next meeting in November 2023.

The meeting was held in the face of a decline in the economy forcing half a million workers into unemployed, with the Consumer Price Index (CPI) rising 3.29 per cent and inflation rising 4.74 per cent compared to the same period in 2022.

According to Lê Đình Quảng, Deputy Director of Legal Policies, VGCL, although the parties did not come to an agreement on the details of the raise, they voted and decided to organise another meeting at the end of the year for further negotiations.

In yesterday's negotiations, the VGCL asked for a raise of 6 per cent to the minimum wage, which translates to a minimum increase of VNĐ195,000 (US$8.21) for Region IV and VNĐ280,000 (US$11.79) for Region I.

The VGCL's claims have a base: according to a study done in 2023 on workers' living, the average monthly income of workers is a mere VNĐ7.88 million (US$330), whereas their monthly expenditure is higher, at around VNĐ11.7 million (US$500).

The expenditure has risen 19 per cent compared to 2022, mostly due to rising costs, specifically in electricity and water.

Quảng added that he shares the concern of businesses, with low orders and job cuts glooming, but the minimum wage in 2024 should still be raised so that the actual salary of workers does not go into decline.

The raise, however, should be assessed to ensure that businesses can afford it.

Deputy Director of the VCCI Hoàng Quang Phòng, representing the businesses said that keeping jobs and orders in current times is essential, with many businesses struggling to keep jobs for their employees.

"We agree that raising the minimum wage is necessary," said Phòng, "But to adjust it now, it's impossible."

Typically, the minimum wage negotiations are made over two or three meetings until the final decision is made.

The regional minimum wage is the lowest level and is used as the basis for businesses to negotiate and pay wages to labourers. This amount applies to individuals working under the employment contract framework of the Labour Code; working within enterprises; cooperatives, farms, households, individuals, and other Vietnamese organisations that employ staff under contracts; as well as foreign organizations and individuals in Việt Nam that employ labourers.

In July 2022, the monthly minimum wage increased by an additional 6 per cent. — VNS