Minimum wage increases by an average of nearly 6%/year

According to the plan to implement tasks in March, the Ministry of Home Affairs said it will focus on preparing content on adjusting the minimum wage, especially related to the zoning of minimum wages to suit changes in areas when implementing administrative unit arrangement.

Every year, the National Wage Council meets to advise the Government on appropriate minimum wage adjustments to ensure a minimum standard of living for workers.

The most recent time, the National Wage Council advised the Government to issue Decree No. 74/2024. Accordingly, from July 1, the regional minimum wage will increase by an average of 6% compared to the 2023 level. According to this Decree, the regional minimum wage currently applied from July 1, 2024 to present is region 1 with 4.96 million VND/month; region 2 is 4.41 million VND/month; region 3 is 3.86 million VND/month; region 4 is 3.45 million VND/month.

The regional minimum wage directly affects the income of workers working under labor contracts. Since 2009, this wage has been adjusted 16 times.

According to statistics from the labor management agency, in nearly 10 years (2016-2024), the minimum wage has been periodically adjusted with an average increase rate of 5.96%/year. The average salary of salaried workers increased by an average of 6.57%/year.

Negotiate a higher salary

To have data to serve the adjustment of regional minimum wages in 2025, the Ministry of Labor, Invalids and Social Affairs (now the Ministry of Home Affairs) issued a Decision on the 2024 survey on labor and wages in enterprises.

The survey was conducted at 3,400 enterprises with 6,800 employees in 18 provinces and cities representing 8 economic regions of the country with a large number of enterprises and a developed labor market. Of which, the 2 localities with the largest number of surveyed enterprises are Hanoi and Ho Chi Minh City.

The collected results will also serve the management and publication of average wages in the labor market for businesses and employees to refer to as a basis for salary negotiations.

Mr. Le Dinh Quang, Deputy Head of the Department of Legal Policy and Labor Relations (Vietnam General Confederation of Labor), said that increasing wages not only improves workers' lives but also motivates productivity, thereby contributing to economic development.

Grassroots unions should support workers in negotiating wages higher than the minimum wage through collective bargaining agreements.

To have a basis for proposing a minimum wage this year, the Trade Union conducted a preliminary survey on the living conditions, employment, wages and income of workers.

However, to propose adjustments to the regional minimum wage, more in-depth surveys need to be conducted in the future. Compared to actual needs and current living standards, workers expect the regional minimum wage in 2025 to be adjusted upward to ensure their livelihoods.