Hanoi (VNA) – The National WageCouncil has agreed to propose a region-based minimum wage increase of 6.5percent for 2018 to the Government for consideration.

Accordingly, the regional minimum wage foremployees working for enterprises in Region 1 is proposed at 3.98 million VND(175 USD) per month (up 230,000 VND from 2017), Region 2 at 3.53 million VND(up 210,000 VND), Region 3 at 2.9 million VND (up 190,000 VND), and Region 4 at2.58 million VND (up 180,000 VND). 

Deputy Minister of Labour, Invalids and SocialAffairs Doan Mau Diep, who also chairs the National Wage Council, said at thecouncil’s third meeting on the issue on August 7, eight of the 14 votes were infavour of the 6.5-percent rise.

However, the Vietnam General Confederation ofLabour (VGCL), which represents employees, and the Vietnam Chamber of Commerceand Industry (VCCI), on behalf of employers, still showed their dissatisfactionwith the increase.

VGCL Vice President Mai Duc Chinh said a surveyof the VGCL in 17 provinces and cities show that 51 percent of the surveyed employeeshave income just enough to make ends meet, and over 20 percent have to practiceausterity. While the income of 12 percent of the respondents is not enough tocover their daily life, only 16 percent can make savings.

The regional minimum wage should have beenraised by about 6.8 percent, not lower than the increase rate in 2017. Due tosocio-economic difficulties, the VGCL agreed to reschedule the road map for theminimum wage increase to meet basic living standards. With the rise of 6.5percent, the road map could last until after 2020, he said.

VCCI Vice Chairman Hoang Quang Phong said theminimum wage hike must concurrently help improve workers’ living conditions andensure businesses’ development.

He noted in the first seven months of 2017, morethan 73,000 new businesses were set up, but 50,000 others were dissolved orsuspended operations. The proposed increase of 6.5 percent, in fact, hasalready exceeded enterprises’ payment capacity. A VCCI survey shows bothdomestic and FDI firms share the view that if the minimum wage is continuallyaugmented like it has been for the past years, they will be affectedconsiderably.

Phong said employees’ living standards are basedon not only minimum wage but also other factors. Employees should work harderand improve their skills, observance of disciplines and productivity, basing onwhich businesses can give bonuses and other welfare. 

Only when both sides make efforts can workers’living standards improve, he added.-VNA