REGIONAL MINIMUM WAGE MAY BE UNCHANGED IN 2021

Due to the impact of the COVID-19 pandemic on the country’s economy and enterprises’ operation, almost all members of the National Salary Council agree with the plan to maintain the existing regional minimum wage by the end of 2021.

At the second meeting of the National Salary Council organised on August 5, 9 of 13 members voted in favour of the plan not to increase the regional minimum wage in 2021. The representative of the Vietnam General Confederation of Labour refused to vote.

According to Le Thanh, Deputy Minister of Labour, Invalids and Social Affairs, enterprises are facing numerous difficulties in maintaining operations. Thus, keeping the current regional minimum wage would share some of the burdens.

While the view was not unequivocally shared by council members, the National Salary Council will submit this plan to the government, along with the opinion of the representative of the Vietnam General Confederation of Labour. The final decision will depend on developments in the pandemic front and socioeconomic development.

Previously, at its first meeting in late June, the National Salary Council discussed two options: maintaining or increasing the regional minimum wage by 2.5 per cent.

The first plan would help enterprises overcome the difficulties caused by the COVID-19 pandemic as well as the consecutive minimum wage increases of the last years.

Regarding the second proposal, from July 1, 2021 (six months later than the January 1 date for previous increases), wages would be adjusted by 2.5 per cent on average to maintain minimum living standards for workers. This figure was calculated based on increases in the consumer price index (CPI) this year.

Source: VGP