>> Low salaries drive workers out of IZs
Vietnamese workers will receive a 12.4 per cent rise in the minimum wage according to a proposal by the National Salary Council finalised at a meeting on September 3 in Hanoi.
Deputy Minister of the Labour, Invalids and Social Affairs Pham Minh Huan, who is also chairman of the National Salary Council, said that the rate was decided after a vote after the Vietnam General Confederation of Labour (VGCL) and the Vietnam Chamber of Commerce and Industry (VCCI) failed to reach an agreement.
"14 out of 15 members of the council agreed to the proposal which will be sent to the PM later this month," Huan said. "I hope that the increase will mean that some of the country’s poorest workers have enough to live on," Huan said.
There had been a stalemate between the VGCL and VCCI at two meetings held in August, with the VGCL proposing a 16.8% increase while VCCI was only prepared to accept a paltry 10 per cent increase.
The current monthly minimum wage varies based on location. With this increase, the wage in Hanoi and HCM City will be raised by VND400,000 (USD17.75) to VND3.5 million (USD155) a month; in Can Tho, Danang, Haiphong and on the outskirts of Hanoi and HCM City by VND350,000 to VND 3.1 million; in Bac Ninh, Bac Giang, Hai Duong and Vinh Phuc provinces and provincial cities by VND300,000 to VND2.7 million while in the remaining locations it will increase by VND250,000 to VND2.4 million.