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Minimum wage increase still debated

by VTV425 August 2015 Last updated at 16:40 PM

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VTV.vn - The national Wage Council convened the second meeting to discuss minimum regional wage increases in 2016. The first meeting, which took place 3 weeks ago, failed to reach agreement.

The General Confederation of Labour proposed an increase of 16% in the minimum wage. This means increases of 350 thousand to 500 thousand dong or 15 USD to 22 USD a month, depending on the regions.

Meanwhile, Vietnam Chamber of Commerce and Industry (VCCI) put forward an increase of 10%. According to the General Confederation of Labour, a minimal increase in the minimum wage will have almost no effect on the living standards of a large number of workers, meaning they will have to work overtime to make a reasonable wage. 

The VCCI unsurprisingly claimed the trade union-backed increase would be a burden on enterprises as they have to spend much more on wages and insurance.