Ministry proposes minimum wages increase by 7%

The Ministry of Labor, Invalids and Social Affairs (MOLISA) has proposed the Government to issue a new decree on regional minimum wage, which will take effect from July 1, 2024.

Under the proposal, regional minimum wage should be increased by 6% on average in all four regions, or around VND200,000-280,000 ($7.8-11).

Accordingly, the monthly minimum wage should be increased from current VND4.68 million ($184) to VND4.96 million ($195) in region I; from VND4.16 million ($163) to VND4.41 million ($173) in region II, from VND3.64 million ($143) to VND3.86 million ($152) in region III, and VND3.25 million ($128) to VND3.45 million ($136) in region IV.

Region I covers urban areas of Hanoi and Ho Chi Minh City, while region II covers rural areas of Ha Noi and Ho Chi Minh City along with Can Tho, Da Nang and Hai Phong cities.

Region III covers provincial-level cities and districts of Bac Ninh, Bac Giang, Hai Duong, and Vinh Phuc provinces and region IV encompasses the rest of the country.

The proposal was made as the consumer price index is forecast to rise from 4-4.5% this year, making it difficult for workers to ensure the minimum living standard for their families with the current regional minimum wage approved two years ago.