Proposal on minimum wage to be submitted for Government approval, Illustrative image (Photo: VNA)

Hanoi – After two negotiation sessions, the National Salary Council on December 20 reached a consensus to finalise the proposal to increase the regional minimum wage by 6 per cent starting from July 1, 2024, to submit for Government for approval.

In the meeting on the same day morning, representatives from union organisations proposed an increase of between 6.5 - 7.3 per cent, while those from employers suggested maintaining an increase between 4 - 5 per cent.

If the proposal is approved, the minimum wage for Regions I, II, III and IV will respectively rise by 280,000 VND (nearly 11.5 USD), 250,000 VND, 220,000 VND, and 200,000 VND to 4.96 million VND, 4.41 million VND, 3.86 million VND, and 3.45 million VND.

The hourly minimum wage will also increase by 6 per cent starting from the same date, with the highest increase level for Region I at 23,800 VND per hour.

Regionally-based monthly minimum wages vary between four different regions based on four separate benchmarks determined by living standards in each area.

Region 1 covers urban Hanoi and HCM City; Region 2 covers rural Hanoi and HCM City along with Can Tho, Da Nang and Hai Phong cities; Region 3 applies to cities and districts of Bac Ninh, Bac Giang, Hai Duong, and Vinh Phuc provinces; and Region 4 encompasses the remaining localities.