Proposed minimum wage insufficient to make ends meet: insiders

As the Ministry of Labour, Invalids and Social Affairs has been gathering comments on a draft on the minimum wage, insiders said the proposed wages are insufficient to make ends meet.
Proposed minimum wage insufficient to make ends meet: insiders ảnh 1Full-time workers at a textile factory. (Photo: vneconomy.vn)
Hanoi (VNS/VNA) - As the Ministry of Labour, Invalids and SocialAffairs has been gathering comments on a draft on the minimum wage,insiders said the proposed wages are insufficient to make ends meet.

Underthe draft, minimum wages are set by region with an hourly wage of 22,500 VND (0.97USD) for Region I, 22,000 VND for Region II, 17,500 VND for Region III and 15,600VND for Region IV. Lawmakers expect the wages to maintain a decent livingstandard for workers, notably those working part-time.

LeDinh Quang, Deputy Head of the Labour Relation Department under the VietnamGeneral Confederation of Labour (VGCL), thought otherwise.

Quangsaid workers are currently paid 18,000-23,000 VND per hour, already lowcompared to the price level. He opined that minimum hourly wages between 20,000VND and 30,000 VND would be more suitable for labour contracts.

TranVan Trieu, Director of the Legal Consulting Centre, shared this view andattributed the low proposed wages to payroll miscalculations.

Specifically,hourly wages have been calculated by dividing minimum monthly wages by totalworking hours in a month, which are the product of 26 working days per monthand eight hours per day.

"Suchcalculation is problematic as total working days per month should be 24 daysdue to maternity leave and sick leave, not 26 days. Higher total working dayshave driven down hourly wages," Trieu said.

Thedirector also believed that current minimum monthly wages are not high enoughto meet workers' basic needs, so the wages should be adjusted up. He suggestedminimum hourly wages increase to 30,000-40,000 VND.

TranHuu Tin, head of the Tin and Partners Law Office, remarked that full-timeworkers are entitled to social insurance, healthcare insurance, unemploymentinsurance and bonuses in addition to wages. Meanwhile, hourly workers arenormally eligible for wages only, putting them at a disadvantage. He proposedinsurance and bonuses be included in hourly wages to improve workers' incomes.

"Theproposal is consistent with the Law on Social Insurance, which requiresemployers to pay workers an additional amount of the wage equal to socialinsurance payments in case they are not subject to the compulsory insurancescheme," he said.

VuMinh Tien, Director of the Institute of Workers and Unions, stressed thatpart-time workers are normally not entitled to benefits, allowances and bonuseslike full-time workers.

Accordingly,the minimum wage should be adjusted up to cover such a disparity, ensuringequal treatment for both types of workers.

NguyenThi Bong, a full-time worker at Pou Yuen Vietnam JSC., revealed that sheoften works as a waitress during her free time to make extramoney for her family. The part-time job earns her around 16,000-20,000 VND perhour, comparable to the proposed minimum wages.

"Thewage is not worth my effort, but I have to accept it as it is an extra sourceof income," she said./.
VNA

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