Vietnam's National Wage Council raised the minimum wage by an average of 5.3% in 2019. Minimum wage increased by US$7-9 per month, the lowest increase compared to previous years. The rate of increase in 2018 was 6.5%, and the minimum wage increased by 7.3% compared to 2017.
The Vietnam Labor Confederation (VGCL), representing workers, proposed an increase of at least 6.1%. The management-side Vietnam Chamber of Commerce and Industry (VCCI) proposed an increase of 5.1%. After consulting the National Wage Council, all parties agreed on 5.3%.
Minimum wage in Vietnam
The minimum wage in 2018 ranged from VND2.76 million (US$118) to VND3.98 million (US$171), depending on the region. The minimum wage for 2019 will range from VND2.92 million (US$125) to VND4.18 million (US$180).
Region I Cities Hanoi and Ho Chi Minh City Region II Urban Can Tho, Da Nang, Hai Phong, Hanoi and Ho Chi Minh Rural Areas Region III Local Cities, Bac Ninh, Bac Giang, Hai Duong, Vinh Phuc Region IV Others
Hard life even with increased minimum wage | Vietnam
The 2018 VGCL survey covers 3,000 workers in 150 occupations in Vietnam. According to the survey results, 26.5% of workers said they were struggling to make ends meet and 12.5% said their wages were not enough to support their families. About 44% of employees surveyed are working an average of 28 hours of overtime due to hardships.
The survey found that the minimum monthly expenditure for a typical worker is VND6.5 million (USD280), while the base salary is only VND4.6 million (USD197.8), forcing workers to work overtime. .
The consumer price index rose 3.53% in 2017 and 3.54% in 2018. Since there is a strong correlation between inflation and wages, rising inflation affects wage growth.
Although the wage increase rate is higher than the consumer price index increase rate in 2018, it is expected that the government will request a higher wage increase rate in 2020 in order to maintain high purchasing power.
Payroll and Wage Management in Vietnam
This time, I explained in detail the situation of wage increases in Vietnam in 2019. The column also explains the salary and wage management of Vietnamese employees and tax relations.
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