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Regional minimum wages to increase by 5.5% in 2020

by NDO12 July 2019 Last updated at 17:00 PM

With a hike of 5.5%, the new wages are expected to meet 100% of the minimum standards of living. (Illustrative image)
With a hike of 5.5%, the new wages are expected to meet 100% of the minimum standards of living. (Illustrative image)

The National Wage Council reached a consensus on raising the regional minimum wages in 2020 by 5.5% compared to that of 2019, which will be applied to Vietnamese employees working with labour contracts in non-State enterprises from January 1, 2020.

The wage change was reached at the second debate of the National Wage Council held in Hanoi on July 11, which discussed options for adjusting regional minimum wages in 2020.

At the first debate of the National Wage Council held in June, the proposals on wage hikes from representatives of employees and employers were quite different. The Vietnam General Confederation of Labour (VGCL), which represents employees, suggested the highest rise, at 8.18%, while the Vietnam Chamber of Commerce and Industry (VCCI), representing employers, proposed a small increase of below 3%.

With a rise of 5.5%, the regional monthly minimum wages of four different regions in Vietnam will be raised in 2020; from VND4.18 million to VND4.42 million (up VND240,000) for region 1, from VND3.71 million to VND3.92 million (up VND210,000) for region 2, from VND3.25 million to VND3.43 million (up VND180,000) for region 3, and from VND2.92 million to VND3.07 million (up VND150,000) for region 4.

According to the VGCL, the current minimum wages have met over 95% of the minimum living standards of workers and their families. With a hike of 5.5%, the new wages are expected to meet 100% of the minimum standards of living.

After 2020, the National Wage Council will continue to convene on adjusting minimum wages depending on living standards of workers and other indicators.

Regional minimum wages have been increased for three consecutive years, with a hike of 7.3% in 2017, 6.5% in 2018 and 5.3% in 2019.

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