Workers working on wooden children's toys at Đức Thành Company in HCM City. — VNA/VNS Photo Hồng Đạt

HÀ NỘI — The National Wage Council has officially submitted their proposal to the Government over a 6 per cent increase in the regional minimum wage, equivalent to VNĐ238,000 (about US$9.8) per month on average, starting from July 1.

The increase, which was agreed by all 16 members of the council after two negotiation sessions in 2023, was suggested in the context that more than 18,300 new businesses were either established or returned to the market each month, and the number of orders rose quarter by quarter.

According to the proposal, the wage will be lifted to VNĐ4.96 million ($203.42) per month in Region 1; VNĐ4.41 million in Region 2; VNĐ3.86 million in Region 3 and VNĐ3.45 million in Region 4.

Region 1 covers the urban areas of Hà Nội and HCM City, two biggest economic centres of the country; Region 2 encompasses the rural areas of Hà Nội and HCM City, along with other major urban areas in the country such as Cần Thơ, Đà Nẵng, and Hải Phòng; Region 3 covers provincial cities and the districts of Bắc Ninh, Bắc Giang, and Hải Dương provinces; while Region 4 comprises the rest of the country.

Currently, the wage varies from VNĐ3.25-4.68 million per month depending on regions. Meanwhile, with the 6 per cent rise, the minimum hourly wage will reach VNĐ16,600-23,800.

Once approved, this will be the second time in four years that the regional minimum wage has increased in early July, after an adjustment on July 1, 2022 due to the impact of the COVID-19 pandemic. As a practice over the past 10 years, the regional minimum wage usually increases on January 1.

Deputy Minister of Labour, Invalids and Social Affairs Lê Văn Thành, who is Chairman of the National Wage Council, said that the 6 per cent rise is a harmonious level, showing the sharing of difficulties between employees and employers.

The increase date proposed by the council is from July 1, which coincides with the time for the implementation of wage reform in the State sector, providing time for businesses to prepare plans and resources for the scheme, he said. — VNS