The living wage ranges between 6.14 – 8.61 million VND
Research from 14 provinces and 22 districts in the North, Central and South provided living wage data for four regions, which can be seen as corresponding to the four minimum wages implemented in the four regions of Vietnam. Name is applying.
Region 1 includes large cities such as Ho Chi Minh City and Hanoi. Region 2 is the provinces and cities surrounding Ho Chi Minh City and Hanoi. Region 3 is other urban areas. Area 4 is considered a remote and inaccessible area.
Accordingly, the living wage for Regions 1, 2, 3 and 4 in 2022 announced by the study is Rs 8.55 million – 7.61 million – 7.39 million – 6.1 million respectively. Meanwhile, Vietnam’s official 2022 regional minimum wage is 4.68 million – 4.16 million – 3.64 million – 3.25 million.
As per the above study the updated living wage for 2023 for 4 sectors is 8.61 million – 7.88 million – 7.66 million – 6.14 million respectively.
This salary is calculated based on several factors including the cost of food, the cost of housing, the cost of other needs (education, clothing, shoes, health needs…), the average number of workers in the family, the “nuclear” The number of members included. family”, 5% marginal cost and mandatory social security contribution rate.
Anchor compared the living wage with Vietnam’s current minimum wage in the research results and determined that the minimum wage implemented in Vietnam in 2022 will reach about 50% of the living wage.
Typically, the 2022 living wage in Region 1 (Ho Chi Minh City, Hanoi) is 8.55 million VND, according to Anchor. While in Region 1 the regional minimum wage for 2023 is £4.68 million (equivalent to 54.7% of the living wage).
Minimum wage is just a hindrance
Currently, the Ministry of Labour, War Invalids and Social Affairs is consulting with experts, researchers as well as representatives from the labor sector to prepare a draft dossier for submission to the Organization’s Convention No. 131. International Labor Office (ILO) setting minimum wages.
At the consultation held in Ho Chi Minh City on 15 and 16 November, most experts commented that “the minimum wage is still low.”, does not ensure the minimum living requirements of workers and their families as per the provisions of the Labor Code.” At the same time, it is still far away from the Asian wage level and the Global Living Wage Alliance’s living wage.
A representative of the Department of Labor Relations and Wages said that the minimum wage only regulates the floor level, which is the lowest level in the labor market and employers are not allowed to pay a lower level.
As far as the salary paid to employees and how to increase their salary depends on the negotiations between them and the employer.
However, experts also believe that the mechanism of negotiation and collective bargaining is not strong enough, so the parties are still stuck on the regional minimum wage. Employers stick to the regional minimum wage to pay social insurance for employees at a low level while limiting costs.
Meanwhile, even when businesses are in tough times, workers stick to minimum wage increases to press for pay increases.
Although Vietnam’s minimum wage is still low, Mr.
According to him, Vietnam can fully and effectively continue the current consultation mechanism with the participation of three parties (employees – state – employers) to achieve the goal of “wage wages”. Minimum to meet the basic needs of workers.
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