On June 26, at the first meeting of the National Wage Council to develop the 2026 minimum wage plan, the Vietnam General Confederation of Labor (VGCL) proposed two options: a 9.2 percent and an 8.3 percent increase. The proposal was based on a review of Decree 74/2024/ND-CP implementation across provinces, cities, industries, and enterprises.

According to a labor expert, the proposed 8.3 percent and 9.2 percent minimum wage increases are necessary and well-founded, given that current income levels remain low and fail to meet the actual minimum living standards of most workers.

Nhac Phan Linh, Vice Director of the VGCL’s Institute for Strategic Research and Labor-Union Magazine, said the new minimum wages should be created in reference to other socio-economic factors. With Vietnam aiming to become a developed, high-income country by 2045, Linh stated that the income per capita must reach $15,000 per person, while it currently stands at $4,700 per person.

Thus, workers’ income needs to increase by over $400 per person annually (equivalent to more than VND10 million).

Linh said this is the basis for the National Wage Council to adopt a new approach, distinct from previous discussions. 

"Of course, the minimum wage determination still depends heavily on the basket of goods, CPI, etc... But we also need to refer to the political goals set by the Party and State to create a new breakthrough," Linh said.

Though the proposed increases are higher than the 2024 adjustment (6 percent), they are minor compared with the rising costs of living, childcare, housing, and healthcare.

Recent surveys found that most workers can only cover basic expenses, with little to no savings, and some even rely on frequent borrowing to make ends meet. Meanwhile, the minimum wage, considered a "social safety net," does not yet reflect the true value of labor or basic living needs.

Thus, the proposed 9.2 percent minimum wage increase is a positive signal, but long-term adjustments should aim to align with reality, so as to be sure that the minimum wage truly supports workers.

The expert added that the minimum wage should be adjusted before January 1, 2026, to help workers overcome difficulties. Current incomes fail to cover basic living costs, forcing many to borrow or work extra hours, impacting their health and quality of life.

Workers face significant challenges

A VGCL survey in March-April 2025 on 3,000 workers in 10 major provinces and cities, paints a concerning picture of living conditions: 12.5 percent of workers borrow monthly to cover expenses; 29.9 percent borrow occasionally (3-4 times a year); 26.3 percent live frugally; and 7.9 percent cannot make ends meet.

Moreover, only slightly over half (55.5 percent) of workers reported that their main meals include sufficient meat or fish—a basic need that remains out of reach for many worker families. Low nutrition levels not only affect health and productivity but also harm long-term quality of life.

The survey showed that wages are not only used to just cover meals, bills, or short-term loans but also influence major life decisions.

Up to 72.6 percent of unmarried workers said their current income is a major barrier to marriage, and 72.5 percent of married workers said wages affect their decision to have more children.

Over 53.3 percent of workers said their income covers only a portion (over 50 percent) of their children’s education costs.

These indicators show that the minimum wage is no longer just a financial issue but a factor shaping the future, security, and long-term social structure.

In the current context, the adjustment of the regional minimum wage cannot be delayed. This is not only a legitimate right, but also a basic condition for workers to live up to the value of their labor.

A “true” minimum wage must not only ensure social insurance contributions, but must be enough to support oneself, raise children, maintain health and maintain a basic quality of life – something that many workers today are still looking forward to.

According to VGCL, labor productivity in 2024 was estimated to rise by 5.88 percent compared to the previous year, surpassing the National Assembly’s target (4.8–5.3 percent). This is a positive signal in the roadmap to achieve an average productivity growth of over 6.5 percent per year by 2030.

With the economy supported by policies like tax exemptions, fee reductions, and access to land and finance, 2025 is set as a year to accelerate and lay the foundation for the 2026–2030 development period.

Vu Diep