This year the economy has improved but the Vietnam Chamber of Commerce and Industry (VCCI) proposed a minimum salary hike of around 10% and this is unacceptable, Mai Duc Chinh, vice chairman of the Vietnam General Confederation of Labor (VGCL), said before he walked out of the meeting.
The VGCL proposed in July increasing the 2016 minimum wage by 350,000-550,000 vnd per month, or a rise of around 17%.
At the Aug 3 National Wage Council meeting, the VGCL suggested a lower increase, of around 400,000 vnd. Such a proposed hike could not meet laborers’ “basic living needs” as mentioned in Article 91 of the Labor Code, according to Chinh.
VCCI, the agency representing employers, initially proposed a wage rise of over 10%, with 4-5% calculated for the consumer price index, 3% for average labor productivity and 3% for basic needs of workers.
But VCCI lowered its proposal to 6-7% at the Aug 3 meeting.
The Vietnam Textile and Apparel Association told local reporters that the 2015 minimum wage hike should be 6%, and 7% in 2017 and 2018. Besides, VITAS suggested a minimum wage adjustment every two years instead of every year to avoid hurting the competitiveness of enterprises.
The technical team of the National Wage Council also offered three minimum wage adjustment plans with average hikes of 12.4%, 11.4% and 10.7%.
Another meeting will be held in about two weeks.
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VCCI proposes 6~7% Minimum Wage adjustment for 2016, Aug 3, 2015