Vietnam to raise minimum wage in business sector by 6% in July 2024

The meeting was the second one after the first in August failed to arrive at a consensus on the minimum wage hike.

The Vietnam General Confederation of Labour had proposed a 6.48 per cent or 7.3 per cent wage hike citing rise in export orders.

The Vietnam Chamber of Commerce and Industry, however, proposed a 4.5-5 per cent rate, saying new orders are just arriving and maintaining sustainability of business operations is important.

Following negotiation, all 16 members of the National Wage Council voted for a 6 per cent hike. The minimum wage will now be raised between VND 200,000-280,000 ($8.22-11.5), depending on regions, to VND 3.45 million-4.96 million a month, domestic media outlets reported.

The minimum wage was raised by 5.88 per cent to VND 4.68 million ($197.07) per month in July last year.

The country saw 4.27-per cent inflation in the first 11 months this year, and businesses have been struggling with a fall in orders, leading to waves of layoffs since late last year.

ALCHEMPro News Desk (DS)