HÀ NỘI — The Ministry of Labour, Invalids and Social Affairs (MoLISA) is working on a proposal to adjust the regional minimum wages in certain districts.

Regional minimum wages (RMW) in a district are set based on the district's administrative boundaries and living standards.

Adjusting RMW becomes essential as some districts have witnessed significant changes in their administrative borders and economic situation in recent years.

Under the proposal, Quảng Yên Town, Đông Triều Thao, Uông Bí City and Móng Cái City in Quảng Ninh Province will be recategorised from Region-2 to Region-1 where RMW are set at VNĐ4.96 million (US$199) monthly and VNĐ23,800 ($0.95) hourly. Region 1 covers most of big urban areas of Hà Nội, HCM City, Hải Phòng, Bà Rịa-Vũng Tàu, Đồng Nai, and Bình Dương provinces.

The proposal also seek to recategorise Thái Bình City in Thái Bình Province, Thanh Hóa City, Sầm Sơn City, Nghi Sơn Town and Bỉm Sơn Town in Thanh Hóa Province, Ninh Hòa Town in Khánh Hòa Province and Sóc Trăng City in Sóc Trăng Province from Region-3 to Region-2 where RMW are set at VNĐ4.41 million ($177) monthly and VNĐ21,200 ($0.85) hourly.

Re-categorisation from Region-4 to Region-3 is proposed to apply to Thái Thụy District and Tiền Hải District in Thái Bình Province, Triệu Sơn District, Thọ Xuân District, Yên Định District, Vĩnh Lộc District, Thiệu Hóa District, Hà Trung District, Hậu Lộc District, Nga Sơn District, Hoằng Hóa District and Nông Công District in Thanh Hóa Province, and Ninh Phước District in Ninh Thuận Province.

RMW in Region-3 is set at VNĐ3.86 million ($155) monthly and VNĐ18,600 ($0.75) hourly.

MOLISA believes that the proposal will create a balance in labour costs among neighbouring areas, given the high development of these towns, cities and districts in labour markets and infrastructure.

MOLISA also proposes an average increase of 6.0 per cent in RMW for 2024, about 2.0 percentage points higher than the growth of the average living standards during the year.

The proposed rise in RMW is believed to be reasonable given the country's economic growth rate of 5.05 per cent and a fast-recovering labour market and business sector.

It is also believed to offset the erosion of purchasing power caused by a projected CPI growth rate of between 4.0 to 4.5 per cent in 2024, ensuring decent minimum income for workers and their families. — VNS