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First debate on 2018 regional minimum wage kicks off

Update: June, 28/2017 - 18:04
Current regional minimum wage is said to help employees cover 90 per cent of costs of minimum living conditions. — VNA/VNS Photo
Viet Nam News

HÀ NỘI — The National Salary Council on Tuesday kicked off the first debate on regional minimum wage for 2018.

Various options for the wage were recommended, including keeping it unchanged, increasing it by 5 per cent, 6 per cent, 6.8 per cent or up to 13.3 per cent compared with the current wage.

Regional minimum wage rates are the lowest rates used as the basis for any arrangement between enterprises and employees on salary and salary payment.

The wage rates are paid to employees who work under normal working conditions, meet monthly working hour standards and fully discharge their obligations for predetermined labour productivity norms or agreed work duties.

Việt Nam currently has four regions ranked according to the socio-economic development level of each region. Region I includes the large districts and towns of Hà Nội, Hải Phòng, HCM City and Đồng Nai, as well as Bình Dương and Bà Rịa-Vũng Tàu

Since January 1, 2017, the regional minimum wage rate applicable for employees working for enterprises in Region I is VNĐ3,750,000 per month, in Region II is VNĐ3,320,000 per month, in Region III is VNĐ2,900,000 per month and in Region IV is VNĐ2,580,000 per month.

The rates are 7.3 per cent higher than those in 2016.

At the meeting on Tuesday, the Việt Nam General Confederation of Labour (VGCL) – representative of labourers – recommended the highest increase of 13.3 per cent, or VNĐ160,000-VNĐ220,000, depending on regions.

The recommendation is based on the recently-announced positive economic index, which includes the increased number of new enterprises, lower unemployment rate and controlled inflation rate, with the current minimum wage insufficient for labourers to meet minimum living conditions.

However, the Việt Nam Chamber of Commerce and Industry on behalf of enterprises said it wanted the wage to be unchanged, or increased just 2-4 per cent, claiming enterprises were facing difficulties and increasing competition.

VGCL, however, said any increase of less than five per cent was too modest and barely enough for employees to meet their basic needs in the context of rising prices due to inflation.

It was decided that they would continue their debate next month. — VNS

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