Vietnam plans to increase minimum wage rate by 6% from July

If approved, the plan would see the increase of the minimum monthly wage to between VND3.25 million and VND4.68 million.
By: | April 14, 2022
Topics: Compensation and Benefits | Health and Wellness | News | Vietnam

Vietnam plans to increase its minimum wage rate by 6% from July to help workers tide through the impact of the pandemic.

The plan, pending approval from the prime minister, would see the increase of the minimum monthly wage to between VND3.25 million (US$142) and VND4.68 million (US$205).

“A proportion of labourers are facing difficulties due to the pandemic, and therefore an increase in the minimum salary at this time is needed to help them stabilise their life and stay with their employers,” said head of Vietnam General Confederation of Labour, Ngo Duy Hieu in a statement. 

The Vietnam Chamber of Commerce and Industry, which represents businesses in the country, said firms would try to increase their productivity to help fund the wage hike, according to Reuters. 

READ: Vietnam raises the number of overtime hours

If approved, the wage hike would be Vietnam’s second wage increase in two years.  The country reported a gross domestic product growth of 5.03% in the Q1’2022, exceeding the 4.72% expansion recorded in Q1’2021, but down from 5.22% in Q4’2021.