The average salary of Vietnamese wage earners reached approximately 8.5 million VND ($340) per month in 2024.

While this figure is significantly higher than the regional minimum wage, it still falls short of covering basic living expenses, especially in major cities.

Current minimum wage levels remain too low

According to Government Decree 74/2024, the highest regional minimum wage in Vietnam is currently 4.96 million VND ($198) per month in Region 1 (Hanoi and Ho Chi Minh City), while the lowest is 3.45 million VND ($138) per month in Region 4.

However, in cities like Hanoi and Ho Chi Minh City, a minimum wage of 4.96 million VND is insufficient for workers to cover their daily expenses.

A report by relevant authorities at the end of 2024 showed that the average wage for salaried workers was 8.5 million VND per month. Despite being significantly higher than the minimum wage, this amount is still inadequate for a decent standard of living.

A previous survey by the Institute of Workers and Trade Unions (under the Vietnam General Confederation of Labor) revealed that the average monthly expenditure for a worker’s household reached 14.059 million VND ($562) and tends to increase toward the year-end. The largest spending categories include food, education, and debt payments, highlighting the financial strain on workers.

Individual worker incomes currently cover only about 63% of household expenses. To meet basic living costs, at least two family members need to be employed.

Many workers take on additional jobs, but not everyone has the opportunity, particularly female workers with young children. As a result, many laborers accept lower living standards, including inadequate diets, cramped and substandard housing, and sending their children back to their hometowns for care.

A push for a substantial minimum wage increase

Le Dinh Quang, Deputy Head of the Policy and Legal Affairs Department at the Vietnam General Confederation of Labor, stressed the need for faster wage growth to keep up with economic realities.

Between 2015 and 2020, Vietnam’s minimum wage increased by an average of 9% per year. However, from 2020 onwards, the growth rate has slowed to around 5-6% annually.

In March, the labor union will propose a new minimum wage adjustment to the National Wage Council. The proposal will consider key factors such as labor supply and demand, consumer price index (CPI), economic growth, productivity, unemployment rates, and business affordability.

A labor and wage expert noted that Vietnam’s GDP is projected to grow by 8% in 2025, higher than in 2024, making it feasible to propose a more significant minimum wage increase.

To ensure fair wage negotiations, stronger engagement is needed from labor representatives, employers, and the government in setting the 2025 minimum wage levels.

Businesses that achieve strong financial performance should also be encouraged to negotiate wage increases directly with employees, applying higher minimum wage standards within their companies.

Supporting workers beyond wage increases

While wage hikes are essential, other measures must be taken to ensure worker well-being. When the minimum wage does not fully cover living costs, the government should expand support programs for low-income workers, including housing assistance.

Additionally, authorities need to regulate the prices of essential goods, particularly food and basic services, to ease the financial burden on workers.

Employers should also improve compensation packages by strengthening benefits such as social insurance (BHXH) and health insurance (BHYT). Offering more comprehensive financial protections will help workers cope with health issues and emergencies.

In the long run, achieving a living wage requires a multifaceted approach that includes boosting labor productivity. This can be achieved through better workforce training, more efficient production organization, and a shift toward high-value industries such as electronics and semiconductors.

Vu Diep