Vietnam’s minimum wage hike aimed at protecting lower paid workers
Vietnam’s minimum wage hike, set to take effect on July 1, is aimed at protecting lower-paid workers, help reduce poverty and inequity, and contribute to economic stability, said the International Labour Organisation (ILO) Country Office for Vietnam.
The minimum wage revisions show the commitment of workers and businesses to overcome difficulties together, said ILO, reports Hanoi Times.
For lower-paid workers, adequate minimum wages are crucial to prevent wages from falling down to really low levels, thereby providing some buffer against poverty, it noted.
Many countries in Southeast Asia have established minimum wages to protect its lower-paid workers and reduce inequalities, noted ILO. Vietnam, which typically holds minimum wage revisions on an annual basis, delayed such revisions in 2020 and 2021 to focus on business recovery.
Minimum wages are crucial to serving as a measure of social protection to mitigate the negative impact on vulnerable workers and reduce the exacerbated inequalities that have emerged, striking particular groups of workers such as women and youth, ILO said.