Việt Nam has adjusted the regional minimum wage 16 times since 2009. — VNA/VNS Photo Nguyễn Lành

HÀ NỘI — The Việt Nam General Confederation of Labour (VGCL) has proposed raising the minimum wage for all regions, arguing that a raise of up to 9.2 per cent is necessary to improve workers’ quality of life.

The VGCL has suggested two options for the regional minimum wage increase: by 9.2 per cent or by 8.3 per cent. The proposal was made at a meeting in June with representatives from the Ministry of Home Affairs, the Việt Nam Chamber of Commerce and Industry (VCCI) and independent experts.

At the meeting, the VCCI said that the raise should be at a ‘moderate’ rate of around 3-5 per cent, citing businesses’ payment and growth capacity as well as complex international trade developments.

The change is expected to take effect on January 1, 2026.

Phan Nhạc Linh, deputy director of the Institute for Strategic Studies and member of the National Wage Council, noted that VGCL based its proposal on the current socio-economic context, national development goals and reports presented at the National Assembly (NA), alongside regular surveys conducted by the confederation.

Việt Nam aimed to become a high-income, developed country by 2045, with a target per capita income of US$15,000, up from the current $4,700. This meant workers’ incomes must rise by over $400 annually, he said.

Linh also noted that if the minimum wage in the private sector continues to rise by only 5-6 per cent, it would lag far behind projected increases for civil servants and public employees, potentially affecting social sentiment and overall harmony.

A survey conducted by the VGCL in March-April 2025 with 3,000 workers across 10 centrally governed cities and provinces found that 93.3 per cent of employees reported receiving previous minimum wage adjustments as required.

However, respondents noted that some businesses applied the adjustment only to a subset of low-wage workers for insurance contributions, meaning actual take-home pay remained unchanged.

This reflected either a lack of compliance, limited financial capacity or even deliberate circumvention of the law.

The survey also revealed that 54.9 per cent of workers said their income merely covered basic family expenses, and 26.3 per cent had to cut back severely to make ends meet.

Meanwhile, 7.9 per cent reported that their main income was insufficient to live on, forcing them to seek extra jobs.

Many workers resorted to borrowing for unforeseen expenses. About 12.5 per cent reported having to borrow money monthly to maintain a stable life, while 29.9 per cent said they occasionally needed to borrow every three to four months.

Only 55.5 per cent of surveyed workers could afford meat or fish at every main meal (excluding workplace-provided meals), indicating that many still lacked stable and adequate nutrition.

This impacted both their physical health and work productivity, and ultimately the quality of life for themselves and their families, the survey said.

As many as 72.6 per cent of unmarried workers said low wages were the main reason for their marriage decisions. They felt that their current income could not support a stable family life, especially given the rising cost of living and child care.

Meanwhile, 72.5 per cent of married workers said their current income directly affected their decision to have more children. More than 53.3 per cent of workers said their income covered only roughly 50 per cent of their children’s education expenses.

Highlighting rising prices and insufficient incomes, NA deputy Thái Thu Xương recently raised the issue of the gap between regional minimum wage and minimum living standards at the assembly’s ninth session.

The legislator, who also serves as the standing vice president of the VGCL, pointed out that industrial workers faced a double burden – rising electricity, food and commodity prices on one hand, and unstable employment and declining income on the other.

From 2023 until now, the state utility Việt Nam Electricity had raised electricity prices four times, amounting to a 17 per cent increase, while the minimum wage had only risen once by 6 per cent, Xương noted.

She urged the Government to take immediate action to control inflation, particularly for essentials such as food and electricity. She also recommended revising electricity pricing in favour of low-income earners.

Since 2009, Việt Nam has adjusted the regional minimum wage 16 times.

Most recently, under Decree 74/2024/NĐ-CP, the Government raised monthly minimum wages by 6 per cent on July 1, 2024. — VNS