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Minimum wage may rise 6.5% in 2018

Released at: 17:11, 07/08/2017

Minimum wage may rise 6.5% in 2018

Photo: Internet

National Wage Council submits proposal to government for approval.

by Ngoc Chi

The minimum wage will be increased by 6.5 per cent in 2018, from between VND180,000 ($7.9) and VND230,000 ($10.5) depending on the region, a National Wage Council meeting on August 7 decided.

According to Mr. Doan Mau Diep, Deputy Minister of Labor, Invalids and Social Affairs, (MoLISA) and Chairman of the National Wage Council, the Vietnam General Confederation of Labor (VGCL) and the Vietnam Chamber of Commerce and Industry (VCCI) proposed two options to be voted upon at the meeting: increases of 7 per cent and 6.5 per cent, respectively.

Six out of the 14 council members voted for the 7 per cent increase while 8 voted for the 6.5 per cent increase.

“The National Wage Council has therefore decided on an increase of 6.5 per cent to the minimum wage, which will be submitted to the government for approval,” Mr. Diep said.

Earlier, during their first meeting, VGCL and VCCI could not agree on regional minimum wage increases.

VGCL proposed an increase of 13.3 per cent, between VND370,000 ($16.3) and VND450,000 ($19.8) per month depending on the region. Meanwhile, VCCI suggested no increase or a maximum increase of 5 per cent.

The minimum wage per month is now VND3.75 million ($165) in Region I, VND3.32 million ($146) in Region II, VND2.9 million ($127.6) in Region III, and VND2.58 million ($113.5) in Region IV.

If the increase of 6.5 per cent is approved by the government, the minimum monthly wage would increase to VND3.98 million ($175.1) in Region I, VND3.53 million ($155.3) in Region II, VND3.09 million ($135.9) in Region III, and VND2.76 million ($121.4) in Region IV. 

Though agreement has been reached, neither VGCL or VCCI are pleased. Mr. Mai Duc Chinh, Vice Chairman of VGCL, said that the lowest increase should have been 7.3 per cent.

A VGCL survey conducted in 17 cities and provinces revealed that more than 51 per cent of workers earn an income that covers their living costs, more than 20 per cent must be constantly frugal, 12 per cent don’t earn enough to cover their living costs, and only 16 per cent earn enough to save money.

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