Hanoi: The National Wage Council has proposed to the Government a 6% increase in the regional minimum wage, equivalent to 238,000 VND per month on average, starting from July 1.
The increase, which was agreed by all 16 members of the council after two negotiation sessions in 2023, was suggested in the context that more than 18,300 new businesses were established and return to the market each month, and the number of orders rose quarter by quarter.
According to the proposal, the wage will be lifted to 4.96 million VND (203.42 USD) per month in Region 1; 4.41 million VND in Region 2; 3.86 million VND in Region 3 and 3.45 million VND in Region 4.
Region 1 covers the urban areas of Hanoi and Ho Chi Minh City; Region 2 encompasses the rural areas of Hanoi and HCM City, along with major urban areas in the country such as Can Tho, Da Nang and Hai Phong; Region 3 covers provincial cities and the districts of Bac Ninh, Bac Giang and Hai Duong provinces; and Region 4 comprises the rest of the country.
Currently, th
e wage varies from 3.25 – 4.68 million VND per month depending on regions. Meanwhile, with the 6% rise, the minimum hourly wage will reach 16,600 – 23,800 VND.
Once approved, this will be the second time in four years that the regional minimum wage has increased in early July, after an adjustment on July 1, 2022 due to the impact of the COVID-19 pandemic. As a practice over the past 10 years, the regional minimum wage usually increases on January 1.
Deputy Minister of Labour, Invalids and Social Affairs Le Van Thanh, who is also Chairman of the National Wage Council, said that the 6% rise is a harmonious level, showing the sharing of difficulties between employees and employers.
The increase date proposed by the council is from July 1, which coincides with the time for the implementation of wage reform in the State sector, providing time for businesses to prepare plans and resources for the scheme, he said./.
Source: Vietnam News Agency