Regional minimum wage increase remains pending

The National Salary Council failed to decide on a regional minimum wage hike in 2017 at a meeting in the northern port city of Hai Phong on July 20, according to Deputy Minister of Labour, Invalids and Social Affairs Pham Minh Huan, who is also head of the council.

regional minimum wage increase remains pending hinh 0
The Vietnam Chamber of Commerce and Industry (VCCI), representing employers, proposed a 4.62% rise, ranging from VND100,000 (US$4.5) to 180,000 VND (US$8.1), depending on regions.

Meanwhile, the Vietnam General Confederation of Labour (VGCL) - the representative of employees – asked for an augmentation of between VND250,000-400,000 (US$11.25-US$18), equivalent to about 11%.

The council is scheduled to decide on a wage hike at a meeting in August.

Last year, the government decided to raise the minimum wage in 2016 by 12.4%.

Accordingly, from January 1, 2016, the minimum wages range between 2.4-VND3.5 million (US$108-157), depending on geographical zone.

The wage hike was agreed upon after several negotiations between the VGCL and the VCCI.

Regionally-based monthly minimum wages vary between four different regions based on four separate benchmarks determined by living standards in each area.

Region 1 covers urban Hanoi and HCM City; Region 2 covers rural Hanoi and HCM City along with urban Can Tho, Da Nang and Hai Phong cities; Region 3 applies to provincial cities and the districts of Bac Ninh, Bac Giang, Hai Duong, and Vinh Phuc provinces; and Region 4 encompasses the remaining localities.

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