Employees get excited to receive salary increase

As of now, many enterprises in the province have paid the basic wage that is higher than the regional minimum level under the Government’s Decree No. 38/2022/ND-CP. However, many businesses said they will continue increasing wages after July 1 to support workers to reduce difficulties in the context of escalating prices. In addition, allowances are also added to take better care of employees.

Feeling happy when getting information of salary increase

The Decree No. 38/2022/NDCP on increasing the regional minimum wage for employees takes effect from July 1. The above-mentioned minimum wage increases by an average of 6% (corresponding to an increase of VND180,000 - VND260,000) compared to the current minimum wage. Accordingly, Binh Duong belongs to the region I, so the monthly minimum wage will increase by VND 260,000, from VND 4.42 million per month to VND 4.68 million per month.

Employees are waiting for businesses to increase wages, helping them stabilize their lives

Pham Van Tuyen, Deputy Director of provincial Department of Labor, War Invalids and Social Affairs (DoLISA) said that many businesses in the province have paid the basic salary for employees with the level that is higher than the regional minimum one under the Decree No. 38/2022/ND-CP. However, they said that they will continue increasing wages for workers after July 1, to support workers to reduce difficulties in the time of escalating prices. The above job is very good, helping employees stabilize their lives while retaining them.

Typically, at Tan Nhat Wood Company in the South Tan Uyen Industrial Park, the basic monthly salary of employees is more than VND 4.9 million per person, plus an allowance of about VND 300,000 per month, corresponding to the monthly basic salary of VND5.3million per person. However, this enterprise has just announced to workers that it will continue increasing wages from July 1. Ha Van Lam, a worker working for more than 5 years at the company shared: “We have just been informed by trade union officials that the company will increase wages for employees from July 1 under the Decree No.38. According to the Decree, employees will be increased by VND 260,000 per month, but the company said that it will increase by VND300,000 per month. The average income from salary plus allowances and overtime pay, we receive over VND 10 million per month on average. However, the price of goods increases every day like now, making the life of workers fall into general difficulties. Therefore, the monthly increase of VND 300,000 per person per month is the motivation for laborers to continue working ".

Similarly, at Thien Nam Investment and Development Joint Stock Company in Di An city, right from January 1, 2022, the basic monthly salary of workers has been adjusted by the company and increased by over VND5million per person per month before the Government’s announcement of the time to increase the regional minimum wage. Tran Ngoc Vinh, Chairman of the company's Trade Union said: "After the peak of the Covid-19 pandemic, seeing the prices of all kinds of goods increasing day by day, making workers' lives face difficulties, the company’s Trade Union proposed to increase the basic salary for employees by about 8% from January 1, 2022 and approved by the company’s leaders. On January 1, 2023, the company will continue increasing the basic salary for employees by 8%-10%. In addition to policies to take care of employees' lives, our company is always proactive in salary increase for employees before regulations."

Trade union officials being proactive to give proposal of salary increase to enterprises

Talking about increasing the regional minimum wage in accordance with regulations, ensuring workers ‘legitimate rights and interests, Nguyen Van Dung, Chairman of Tan Nhat Wood Company’s Trade Union said that most enterprises in Binh Duong have paid the basic salary that is higher than the regional minimum level, but they have still planned to increase wages for workers from July 1. Currently, the prices of consumer goods are increasing. If enterprises do not increase wages, workers will face difficulties. In this regard, the role of trade union officials is very important. Trade union officials must be proactive to give proposals to enterprises, demanding benefits for employees.

According to Huynh Van Chu, General Director of No. 1 Packaging and Mineral Joint Stock Company in Thuan An city’s Binh Chuan ward said that over the past 2 years, workers had no regional minimum salary increase, making them face many difficulties. Especially in 2021, they had to stop working for many months, due to the impact of the Covid-19 pandemic. The difficulty of enterprises is at the macro level while the difficulty of employees is urgent that needs to be considered immediately. “In 2021, although facing difficulties, our company increased the salary level for workers by about 5%, equivalent to VND200,000 per person per month. Each employee earns the average income of VND9million-VND10million per month. I think the Government's decision to increase the regional minimum wage by 6% from July 1 is reasonable", Mr. Chu said.

Mr. Tuyen added that in a bid to ensure employees ‘interests and rights, provincial Department of Labor, War Invalids and Social Affairs has just issued a document guiding the implementation of the regional minimum wage to employers in the area under the Decree No. 38/2022 /ND-CP. Accordingly, employers are responsible for implementing the prescribed minimum wage. If having salary payrolls that are no longer consistent with the provisions of Decree No. 38/2022/ND-CP, they must recheck for adjustment in accordance with the above Decree.

“Enterprises need to organize a review of the agreements in the labor contract, the collective labor agreement and the regulations of the employer for appropriate adjustment; do not remove or reduce salary regimes when employees work overtime, work at night... For the contents of agreements and commitments in the labor contract, labor agreement or other legal agreements that are more beneficial to employees than those specified in the Decree No. 38/2022/ND-CP, they need to continue being performed, unless there are other agreements from the parties. Employers must send relevant reports to provincial Department of Labor, War Invalids and Social Affairs after July 1", said Mr.Tuyen.

Reported by Quang Tam-Translated by Kim Tin