Vietnam is preparing for a potential rise in the regional minimum wage this year. Both the ministry of labour, invalids and social affairs (MoLISA) and the Vietnam General Confederation of Labour (VGCL) are drafting proposals regarding that.
The ministry has requested local authorities to review and update the geographical areas applicable to the minimum wage policy, considering recent changes to administrative boundaries.
These include renaming, merging and altering administrative units.
This aim is to align wage regulations with recent administrative changes and ensure fair compensation for workers across the country.
The request followed a June 30, 2024, government decree that set regional minimum wages for workers under labour contracts. The decree classified minimum wages by region corresponding to administrative divisions at the district level.
Since then, several provinces and centrally-run cities have undergone changes in their administrative structure, necessitating a review and update of the regions where the minimum wage applies to maintain consistency with the new administrative landscape, domestic media outlets reported.
Under a July 1, 2024, Decree, the government raised the average minimum wage by 6 per cent. The monthly minimum wages were adjusted to VNÐ4.
96 million (~$200) for Region I, VNÐ4.41 million (~$180) for Region II, VNÐ3.86 million (~0) for Region III and VNÐ3.
45 million (~$140) for Region IV. To prepare for further adjustments this year, MoLISA conducted a survey on wages and labour conditions last year covering 3,400 businesses, involving 6,800 workers across 18 provinces and cities.
The survey results will help establish average wage benchmarks in the labour market and support negotiations between businesses and workers.
