Sides agree on 7.3% raise of minimum wage

The surprising consensus reached at its second meeting this year came amid doubts that the NWC could ever pull off a final figure as its members kept proposing vastly different increase rates at the first meeting late last month.

An average of 7.3% raise in the minimum wage would equal an extra of VND180,000 to VND250,000 (US$8-11) a month for employees in the private sector.

The exact increase, however, would depend on the specific rate applied to the areas where the employees work, with those in Region I benefitting from the highest wage surge, from VND3.5 million to VND3.75 million a month.

Region I includes big districts and towns in Hanoi, Haiphong, HCM City, Dong Nai, Binh Duong and Ba Ria-Vung Tau.

The increased amount in Region II is VND220,000 and decrementally less by VND20,000 for other regions.

The 7.3% raise is large compared to the initial figure of 4.62% proposed by the representative of the employers, the Vietnam Chamber of Commerce and Industry (VCCI).

Vietnam’s General Confederation of Labour, on behalf of the employees, also compromised on its initial demand for an 11.1% hike.

The NWC will submit its proposal to Prime Minister Nguyen Xuan Phuc for approval. The wage hikes will be applied on January 1, 2017 if it is signed into effect.