Should the regional minimum wage rise amid difficult times?

On 9 August, the National Wage Council entered its first official meeting to discuss the plan to adjust the sectoral minimum wages in 2024. The proposed tier of the parties has not been disclosed.

wages didn’t go up, prices went up

exchange with young onlineMs Pham Thi Thu Lan – deputy director of the Institute of Workers and Trade Unions – said the cost of food and drink had increased. If the wages do not increase, the life of the workers will become more difficult.

A survey of nearly 3,000 employees of the agency, published on August 8, shows that the average income is about 7.9 million, but the expenditure is more than 11.7 million.

Ms. Lan expressed and expected a minimum wage, “In fact, a portion of employees have incomes higher than the minimum wage. But many businesses find ways to cut back on other expenses, so that workers’ incomes don’t increase. ” 8%.

And Mr. Le Dinh Quang – deputy head of the Legal Policy Department (Vietnam General Confederation of Labour), member of the National Wage Council – said that this agency has not made any specific proposal yet, but focused on negotiating with the government Is. parties.

According to Mr. Quang, although workers have a tough life, businesses also have to calculate and adjust payment plans, increase productivity, expand orders, and more. Tell us more about the offer. Wage hikes, in the event that there is an increase in the consumer price index, should be considered for increases if appropriate.

“In the coming period, the minimum wage needs to be properly worked out as the lowest floor to protect vulnerable and base wage negotiations,” Kwong said.

pressure on businesses to raise costs

Ms. Nguyen Thi Lan Huang – former member of the National Wage Council – said that the minimum wage should not be increased immediately because the number of businesses leaving the market is huge, the economy has not recovered in the first 6 months of the year.

Ms. Huang said most businesses pay more than the minimum wage, so it is not necessary to raise wages every year. The basic problem is to increase labor productivity and work efficiency.

It is an indirect way of increasing income for the employees. In addition, if wages are too high, enterprises may cut labor and increase the cost burden.

Recalling international lessons, Ms. Huang said many countries did not raise wages mechanically for workers, but through the “three ways” of raising labor productivity, implementing collective labor agreements and legalizing wages. Supported. the minimum.

Also, there are many people who do additional work like driving technology, online sales, so the minimum wage regulation is not flexible.

Commenting on the minimum wage increase, Ms. Pham Bao An, Deputy Director of Du Loi Manufacturing Company Limited (HCMC), said that the minimum wage increase will mainly increase the cost of enterprises to pay social insurance contributions. For workers, because most businesses paid workers more than the regional minimum wage.

In which businesses with several thousand employees will be under heavy pressure to increase costs. Therefore, it is necessary to consider a suitable increase in this time period.

Proposal to increase regional minimum wage by 6% from July 1

TTO – Invoking the provisions of Article 91 of the Labor Code, the Ministry of Labor, War Invalid and Social Affairs issued a written order on May 20 to the ministries, branches and localities to draft the Report and Decree of the Ministry of Labour, War Invalid and Sent request. and social affairs. The government sets the minimum wage.