2018 minimum wage closed 6.5 per cent rise deals with claims

By Vu Long - Aug 07, 2017 | 05:08 PM GMT+7

TheLEADERHaving experienced many debated sessions, the Viet Nam’s National Wage Council (NWC) reaches a final decision on a rise of minimum wage by 6.5 per cent in 2018, a balance move to settle a harmonization between employers and employees.

2018 minimum wage closed 6.5 per cent rise deals with claims
A rise at 6.5 per cent in minimum wage does not meet expectation. Photo: Internet

The final increase at between VND180,000 (US$7.92) and VND230,000 (US$10.13) has helped the minimum wage up to VND3.98 million (US$175.33), VND3.53 million (US$155.5), VND3.09 million (US$136.12) and VND2.76 million (US$121.6) to be paid for employees located in region I, II, III, IV, respectively.

It is very tough task for NWC to reach a decision because the Vietnam Confederation of Labor on behalf of laborers proposed a much higher rise of 13.3%, defending that a lower one would not be adequate to guarantee a decent living for workers.

In contrast, the Vietnam Chamber of Commerce and Industry (VCCI), representing businesses, insisted on a low rise of less than 5% or, even better, no rise at all. According to VCCI, companies are still having difficult times, facing tough competition and are at risks of reduced scales of production.

Doan Mau Diep, Deputy Minister of Labor, Invalids and Social Affairs (MOLISA), NWC's President said that after three heated sessions, the difference on wage increase had narrowed from the initial recommendation of the Confederation at around 13 per cent.

In the meanwhile, the representative of employers had changed from the initial proposal of a zero rise up to 6.5 or 7 per cent. 

Eventually, the final vote at 11 AM today reached the favor of the rise at 6.5 per cent for eight out of 14 members of NWC.

"All the dialogues have occured in a compromising spirit so as to stimulate the social economic development, bring in benefits for laborers as well as relieve burdens for employers," Diep said.

The increase at 6.5 per cent, however, has actually not satisfied with expectation of both employers and employees.

Mai Duc Chinh, deputy president of the Vietnam Confederation of Labor confirmed that the expected rise was at 7.3 per cent equivalent to that reaped last year.

"Under calculation of the Confederation, such a rise will not meet with minimum living conditions of labors as stipulated in the prevailing labor law," he said.

Hoang Quang Phong, VCCI's representative said that several enterprises would have to deal with difficulties under such a rise because throughout 10 consecutive years, the minimum wage increased year after year, having resulted in troubles.

VCCI's arguments refered that if labors wished to improve incomes, they should rely on labor productivity and dedication other than leaning on the minimum salary rise," Phong said.