Regional minimum wage fails to meet workers’ living standards

Amid rising living costs, the lives of many workers and laborers in industrial zones across Dong Nai province continue to face numerous difficulties. Many workers have to “tighten their belts” or cut down on expenses just to make ends meet in the current situation.

The Institute for Workers and Trade Unions under the Vietnam General Confederation of Labour surveyed the employment and living conditions of workers and laborers in Dong Nai at the end of 2024. Photo: N. Hoa

Adjusting the regional minimum wage increase is considered an urgent requirement to ensure the minimum living standard for the majority of workers.

Rising living costs, wages falling behind

Dong Nai is among the provinces with the largest labor force, employing more than 1.4 million workers in its industrial zones. However, according to workers, the current regional minimum wage does not meet actual living expenses, especially for rent, food, transportation, and childcare. Meanwhile, the prices of many essential goods and services, including food, housing, electricity, tuition fees, and fuel, have all increased, placing significant pressure on workers’ daily lives.

Do Thu Ha, a garment worker at Amata Industrial Park in Long Binh ward, shared that in October, the company had fewer orders, resulting in no overtime work and even reduced regular working hours while waiting for year-end orders. As a result, workers’ incomes dropped sharply compared to September. “Each month, my family spends nearly 2 million VND on rent, electricity, and water, and another 3 to 4 million VND on food and childcare. If we rely solely on the basic salary, it’s very difficult. Workers have to work overtime constantly just to make ends meet,” Ha said.

The regional minimum wage is currently applied in accordance with Decree No. 74/2024/ND-CP, which took effect on July 1, 2024. Specifically, the monthly wage is set at 4.96 million VND for Region 1, 4.41 million VND for Region 2, 3.86 million VND for Region 3, and 3.45 million VND for Region 4.

In a similar situation, Do Thi Hai, a wood production worker from Ha Tinh Province, who works at Thanh Phu Industrial Park in Tan Trieu ward, also lives paycheck to paycheck. Hai said her family of three rents a 14-square-meter room near the company. Each month, they pay 1.5 million VND for rent and 1.7 million VND for their child’s tuition, with the rest spent on food and other daily expenses. She shared that only by working overtime continuously can she and her husband cover their basic living costs; without overtime, they have to live extremely frugally. Hai expressed hope that the regional minimum wage will increase and that a Tet bonus will be offered in 2026 so her family can afford to return to their hometown to celebrate the Lunar New Year.

According to Hai, in addition to adjusting salary increases, the government should also implement supporting policies such as developing social housing and affordable rental accommodations for workers, reducing healthcare costs, and providing loans to help them improve their living conditions. At the same time, prices of essential goods should be controlled. These measures are necessary to help workers feel secure, stay committed to their enterprises, and contribute to the local community.

Raising wages to stabilize workers’ livelihoods

In recent years, the State has made several adjustments to the regional minimum wage for workers. However, the pace of wage increases has not kept up with the rising prices of goods and living costs, especially in major urban areas. As rents, electricity, water, food, and education expenses continue to rise, an annual increase of only a few hundred thousand VND in the regional minimum wage remains insufficient. Workers still have to work overtime to cover daily expenses, often leaving them with little time for rest or recreation.

Workers of Vietnam Fortune Technology International Co., Ltd. (Binh Phuoc ward, Dong Nai province) during working hours. Photo: Thao My

According to the Vietnam General Confederation of Labor, the average monthly income of workers currently ranges from 7 to 8.5 million VND, but living costs continue to rise. A recent survey by the Institute for Workers and Trade Unions found that over 70% of workers no longer have any savings, and many are forced to work overtime or take on side jobs to make ends meet. Meanwhile, the minimum living expenses of a worker’s family exceed their actual income. This challenge means that even those working full-time still cannot earn enough to cover their basic needs.

Vu Van Ninh, a worker at Son Ha Co., Ltd. in Tam Hiep ward, shared his concern that due to the low regional minimum wage, many workers have to send their children back to their hometowns to be cared for by relatives so they can devote all their time to work. Ninh expressed his hope that the government will soon adjust the regional minimum wage to improve living conditions, along with introducing more practical support policies to help workers overcome difficulties.

During discussions on the draft Population Law at the 10th session of the 15th National Assembly, delegates emphasized that each worker should receive a minimum wage sufficient to support themselves and one child. They stated that increasing the regional minimum wage is the most crucial economic lever. Without ensuring this initiative, other policies would serve only as encouragement and would not effectively address the issue of low birth rates.

According to the Ministry of Home Affairs, Government Decree No. 74/2024/ND-CP, which regulates the regional minimum wage for workers, took effect in early July 2024 with an average increase of 6%. However, the Ministry has noted that several issues now require review and adjustment. Notably, economic and social conditions, the labor market, and business capacity have all shifted in a more positive direction. As a result, an increase in the regional minimum wage at the beginning of 2026 is considered necessary.

On July 25, the National Wage Council submitted a report to the government, recommending an average increase of 7.2% in the regional minimum wage, effective January 1, 2026. This adjustment is expected to help ease workers’ financial pressures while enabling businesses to retain employees and prevent labor shortages after the Lunar New Year, as seen in previous years.

Pham Thi Kim Thu, a human resources officer at Topband Smart Co., Ltd. in Long Thanh commune, stated that to retain its workers, the company increased employees’ salaries by 1 million VND per person at the beginning of 2025. This adjustment includes a 500,000 VND increase in basic salary and an additional 500,000 VND in various allowances. “The increase in regional minimum wages not only helps improve living standards but also demonstrates the shared responsibility of both enterprises and the State in ensuring social welfare. Once workers are paid fairly, they will feel more secure in their jobs, contributing to improving productivity and production efficiency,” Dung shared.

If the increase in the regional minimum wage were implemented, it would send a positive signal to workers across the country, especially those in Dong Nai province. Most workers expressed hope that the new policy would not only help ease their daily living expenses but also serve as a motivator, encouraging them to stay with their employers in the long term and contribute positively to local development.

By Thao My - Translated by Huyen Trang, Minho