Starting from July 1, 2022, the minimum wage will experience a 6% increase as stated in Decree 38/2022/ND-CP. In an interview with the press, Ms. Nguyen Thu Huong, Senior Manager of the Good Governance Program at Oxfam in Vietnam, emphasized the significance of this decision in alleviating the hardships faced by workers amidst the challenges posed by the Covid-19 pandemic.
Nevertheless, the 6% increment remains modest, considering that Vietnam's minimum wage, as per regulations, falls below the amount required to cover essential living expenses such as food, housing, healthcare, and education.
"Our interviews with workers in the "Insufficient Living Wages and Consequences" report revealed that the repercussions of low wages are forcing them to work overtime to supplement their income. They are compelled to sacrifice their other needs, desires, and aspirations in order to earn enough to meet their basic daily living expenses."
Oxfam strongly recommends that the Government develop a roadmap aimed at elevating the current national minimum wage to a level that guarantees a decent living wage, aligning with the globally recognized definition of a living wage. This progression can be implemented within established timeframes, allowing for market adjustments. It is essential for the National Wage Council to disclose further details on how the minimum wage is calculated while also seeking public opinions and expert consultations.