The regional minimum wage to surge 5.3 per cent in 2019

The National Wage Council convened the third meeting on August 13, 2018, in order to agree on the 2019 regional minimum wage.

At the meeting, the Vietnam General Confederation of Labor (VGCL), which represents labourers, proposed minimum wage in 2019 to rise by 5.5 per cent while the Chamber of Commerce and Industry of Vietnam (VCCI) representing to employers proposed a 5.3 per cent increase.

After the discussion session, the National Wage Council totally agreed with the proposal to increase the minimum wage by 5.3 per cent on average for Region I, up VND200,000 ($8.6); Region II, up VND180,000 ($7.74); Regions III and IV, up VND160,000 ($6.88). This result will be submitted to the Prime Minister for review and final decision.

Four regions are regulated and classified subject to the geography and location of employees ranging from remote, moutainous, island, rural to urban areas across the nation.

According to Doan Mau Diep, Deputy Minister of Labor, Invalids and Social Affairs, at the second meeting held by the National Wage Council, VGCL kept an increase of 8 per cent as proposed in the first meeting, equivalent to between VND220,000 ($9.45) and VND330,000 ($14.2) depending on each region. The reason given by VGCL was due to inflation.

However, VCCI asked for the wage to remain unchanged in 2019 in the first meeting and proposed a 2-per cent increase in the second meeting.

The regional minimum wage increase is 6.8 per cent in 2018 and 7.3 per cent in 2017 meanwhile the inflation rate reached 3.53 per cent in 2017 and is expected to reach between 3.5 per cent and 3.8 per cent in 2018.