The Vietnam Chamber of Commerce and Industry and the Vietnam General Confederation of Labour fell short of fixing the minimum wage increase for 2016 during a meeting in Hanoi on August 25.
The Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam General Confederation of Labour (VGCL) fell short of fixing the minimum wage increase for 2016 during a meeting in Hanoi on August 25.
The VGCL, representing employees, proposed a 16.8 percent pay hike while the VCCI – representative of employers, recommended a mere 10 percent, according to Deputy Minister of Labour, Invalids and Social Affairs Pham Minh Huan when briefing about the outcomes of the second meeting of the Vietnam National Wage Council.
If the third meeting, slated for September 3, fails to reach a consensus, the Council will decide the final solution to submit to the Prime Minister for approval, Huan said.
VCCI Vice President Hoang Quang Phong insisted that the 10 percent hike is reasonable, given a 3 percent productivity rise and 1-3 percent Vietnamese dong depreciation.
If the minimum pay climbs 10 percent, businesses in fact have to shell out 17-18 percent inclusive of social insurance for workers, meaning that they have to pay an extra amount of 30-45 percent compared to 2015.
VGCL Vice President Mai Duc Chinh raised the fact that about 8 percent of employees nationwide earn more than 5 million VND (230 USD) per month, which is enough to cover only necessities.
He suggested the Council make field trips to industrial parks to learn about workers’ lives, and emphasised that the 2016 pay rise should at least be equal to the 2014 level, or 14.6 percent.-VNA
Civil servants members of the armed forces and socio-political organisations staff will enjoy an increase of 9.5 percent to their monthly minimum wage from July 1.
The National Wage Council (NWC) on August 6 adopted a proposal on a 15.1 percent rise in region-based monthly minimum wage in 2015, which will be submitted to the Prime Minister for approval.
Vietnam is facing many challenges in implementing a roadmap on raising minimum wage to cover basic needs of labourers by 2017, said Deputy Minister of Labour, Invalids and Social Affairs (MOLISA) Pham Minh Huan.
A meeting of the National Salary Council on August 5 failed to reach agreement on increasing the regional minimum wage in 2016 and the council is scheduled to meet again in the next two weeks.
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Illustrative image (Source: VNA)
