Proposal to Increase Minimum Wage for Workers from July 1, 2024, and Reduce Weekly Working Hours
Proposal to Increase Minimum Wage for Workers from July 1, 2024, and Reduce Weekly Working Hours?
At the discussion session on socio-economic issues on October 31, a representative from Lang Son province suggested that the Government of Vietnam consider presenting to the National Assembly the reduction of regular working hours for workers in the private sector from 48 hours/week to 44 hours/week, moving towards 40 hours/week as in the public sector.
Referring to working hours, a representative stated that workers need to be cared for, shared with, and must enjoy better from the achievements of the country's development. Therefore, it is suggested that the Government of Vietnam consider presenting to the National Assembly the reduction of regular working hours for workers in the private sector from 48 hours/week to 44 hours/week, moving towards 40 hours/week as in the public sector (which has been implemented since 1999).
In addition, the representative also suggested that the Government of Vietnam direct the National Wage Council to conduct early negotiations to increase the minimum wage for workers to ensure its implementation from July 1, 2024, coinciding with the implementation of wage reform in the public sector.
Source: Government of Vietnam Newspaper
Proposal to Increase Minimum Wage for Workers from July 1, 2024, and Reduce Weekly Working Hours?
What is the Maximum Regular Working Hours Currently According to Regulations?
Regarding regular working hours, it is stipulated in Article 105 of the Labor Code 2019 as follows:
Regular working hours
1. Regular working hours shall not exceed 08 hours per day and not exceed 48 hours per week.
2. Employers have the right to determine working hours by day or by week but must notify employees; in the case of weekly calculation, regular working hours shall not exceed 10 hours per day and not exceed 48 hours per week.
The State encourages employers to implement a 40-hour working week for employees.
3. Employers are responsible for ensuring that working time exposed to hazardous and harmful factors complies with national technical standards and related laws.
Thus, the current regular working hours shall not exceed 08 hours per day and not exceed 48 hours per week.
Employers have the right to determine working hours by day or by week but must notify employees; in the case of weekly calculation, regular working hours shall not exceed 10 hours per day and not exceed 48 hours per week.
Currently, the State still encourages employers to implement a 40-hour working week for employees.
In addition, employers are responsible for ensuring that working time exposed to hazardous and harmful factors complies with national technical standards and related laws.
Specific Roadmap for Wage Reform from 2021 to 2025 and Vision to 2030
In Resolution 27-NQ/TW of 2018, specific goals for wage reform from 2021 to 2025 and vision to 2030 are set out as follows:
* For the public sector
- From 2021, apply new unified wage policies for officials, public employees, and armed forces across the entire political system.
- In 2021, the lowest wage of officials and public employees will be equal to the average lowest wage of the regions in the enterprise sector.
- Periodic adjustments to wage levels in line with the consumer price index, economic growth rate, and the capability of the state budget.
- By 2025, the lowest wage of officials and public employees will be higher than the average lowest wage of the regions in the enterprise sector.
- By 2030, the lowest wage of officials and public employees will be equal to or higher than the lowest wage of the highest region in the enterprise sector.
* For the enterprise sector
- From 2021, the State periodically adjusts regional minimum wage levels based on the recommendations of the National Wage Council. Enterprises will implement wage policies based on negotiations and agreements between employers and employees and collective representatives of employees; the State will not directly intervene in the wage policies of enterprises.
- Implement labor and wage management in state-owned enterprises through a wage cost-based contracting approach linked to the business tasks of the enterprise by 2025, and moving forward to business task contracting for enterprises by 2030.
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