Minimum wage could increase by 5.3 per cent in 2019
Minimum wage could increase by 5.3 per cent in 2019
If the National Salary Council’s proposal is approved by the government, the regional minimum wage will be increased by 5.3 per cent in 2019.
On August 13, the National Salary Council organised the third meeting to discuss increasing regional minimum wages in 2019. After discussions, the authorities and representatives of employers and employees reached a compromise at the rate of 5.3 per cent, equalling an average of VND175,000 ($7.74) per month. The National Salary Council will seek the government’s approval.
Once the 5.3 per cent is approved by the government, the minimum wage of Region I will increase by VND200,000 ($8.84) per month, while the raise will be VND180,000 ($7.96) in Region II and VND160,000 ($7.07) in Region III and IV.
Previously, at the first meeting, the Vietnam General Confederation of Labour (VGCL) proposed increasing the regional minimum wage by 8 per cent, equalling VND220,000-330,000 ($9.55-14.32) per month.
Meanwhile, the Vietnam Chamber of Commerce and Industry (VCCI) proposed not to increase the regional minimum wage at all.
At the second meeting, the parties changed their stances. Accordingly, VCCI proposed an increase of 2 per cent, while the Vietnam Cooperative Alliance requested 4 per cent.
In December 2017, the government issued Decree No.141/2017/ND-CP, amending the regional minimum wage for workers employed under a labour contract. Accordingly, the minimum wage was officially increased from January 1, 2018 by an extra VND180,000-230,000 ($8.07-10.13), depending on the region.
