According to its March task plan, the Ministry of Home Affairs announced that it would focus on adjusting the minimum wage, particularly revising regional wage classifications to align with administrative restructuring efforts.

Each year, the National Wage Council meets to advise the government on appropriate minimum wage adjustments to ensure that workers' wages meet basic living standards.

The most recent wage adjustment was implemented under Decree No. 74/2024, which took effect on July 1. Under this decree, the minimum wage increased by an average of 6% compared to 2023. The current minimum wage rates are:

Region 1: $195/month (4.96 million VND)

Region 2: $173/month (4.41 million VND)

Region 3: $151/month (3.86 million VND)

Region 4: $135/month (3.45 million VND)

These changes directly impact employees working under labor contracts. Since 2009, the minimum wage has been adjusted 16 times. Over the past decade (2016–2024), the average annual increase in minimum wages has been 5.96%, while average employee salaries have grown by 6.57% per year.

Negotiating for higher wage increases

To ensure fair wage adjustments in 2025, the Ministry of Home Affairs (formerly the Ministry of Labor, Invalids, and Social Affairs) has launched a comprehensive labor and wage survey.

This survey covers 3,400 businesses and 6,800 employees across 18 provinces and cities representing eight key economic regions. The two cities with the highest number of surveyed businesses are Hanoi and Ho Chi Minh City.

The findings will not only inform the government’s decision-making process but also serve as a benchmark for businesses and employees negotiating wages.

Le Dinh Quang, Deputy Head of the Policy and Legal Affairs Department at the Vietnam General Confederation of Labor, emphasized that wage increases not only improve workers' livelihoods but also drive productivity and overall economic growth. He urged labor unions to help employees negotiate higher wages through collective labor agreements.

To support fair wage negotiations, labor organizations have conducted preliminary surveys on workers' living conditions, employment, and earnings. However, more in-depth research will be necessary before finalizing the proposed adjustments for 2025. Given the rising cost of living, employees across Vietnam are highly anticipating a substantial increase in the minimum wage to ensure financial stability.

Vu Diep