Debate on 2020 regional minimum wage continues

July 12, 2019 | 13:32

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As usual, at the annual meeting of the National Wage Council next year's changes to the regional minimum wage were discussed.

debate on 2020 regional minimum wage continues

The VGCL's highest proposal was 8.18 per cent, while other bodies proposed 3 and 5.2 per cent, leaving large room for negotiations

According to Le Dinh Quang, deputy head of the Labour Relations Department at the Vietnam General Federation of Labour (VGCL), at the first negotiation in mid-June the VGCL proposed three plans. The first plan would increase minimum wages by 8.18 per cent (VND180,000-380,000), the second one by 7.6 per cent (VND160,000-330,000), and the third one by 6.52 per cent (VND120,000-320,000), applicable to all four regions. These figures were calculated based on price fluctuations, the growth of labour productivity, and the difference between the minimum wage and the minimum living needs.

Previously, at the first round of negotiations, the VGCL also proposed three plans with the largest increase of 8.18 per cent while the Vietnam Chamber of Commerce and Industry (VCCI) proposed an increase of 3 per cent and the National Wage Council 5.2 per cent.

Vietnam’s National Wage Council increased the minimum wage by an average of 5.3 per cent in 2019. The hike, which was lower than in previous years, will increase the minimum wage in the four regions by $7-9 per month. In 2018, the increase was 6.5 per cent, while it was 7.3 per cent in 2017.

The National Wage Council will continue to organise more negotiations before submitting a final proposal to the government.

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