Launching ceremony of National Wage Council
The newly adopted Labour Code 2012 stipulates that “Based on the minimum living needs of the employee and his/her family, social and economic conditions, and wage levels in the labour market, the Government shall announce the regional minimum wage on the basis of the recommendation of the National Wage Council”. The introduction of this tripartite minimum wage fixing body in Vietnam recognizes the importance of participation of workers and employers (direct interested parties) into the Minimum Wage fixing process.
Over the past 15 years, the Government has played a decisive role in minimum wage fixing. This practice undermines the role of workers representatives or employers representatives in minimum wage determination. The National Wage Council which now works based on joint decision making of three parties: workers, employers and Government will help to give legitimacy to the agreed minimum regional wage rates which are final outcomes achieved based on negotiation.
The establishment of the National Wage Council will also enable workers and employers organizations to work more proactively in developing minimum wage proposals which should reflect needs and concerns of their members and people who are directly affected by minimum wage. And through negotiation, MW is expected to be adjusted at a relevant level which helps to balance interests of workers and employers.
In addition, the operation of the National Wage Council will allow more systematic wage related data collection and analysis which plays a very important role in minimum wage determination.
Composition of the National Wage Council: the National Wage Council includes 15 members in total: 5 members each representing workers, employers and Ministry of Labour, Invalids and Social Affairs. The composition reflects a tripartite equal representation in the Council. The presence of Government representatives in the Council will help to fulfill its commitment to maintain minimum wage as a mechanism to provide protection to workers at the lowest wage level.
The important Launching will be attended by the Deputy Prime Minister, Minister of Labour, Invalids and Social Affairs and the representatives of employers, employees and other stakeholders.
The establishment of the National Wage Council will also enable workers and employers organizations to work more proactively in developing minimum wage proposals which should reflect needs and concerns of their members and people who are directly affected by minimum wage. And through negotiation, MW is expected to be adjusted at a relevant level which helps to balance interests of workers and employers.
In addition, the operation of the National Wage Council will allow more systematic wage related data collection and analysis which plays a very important role in minimum wage determination.
Composition of the National Wage Council: the National Wage Council includes 15 members in total: 5 members each representing workers, employers and Ministry of Labour, Invalids and Social Affairs. The composition reflects a tripartite equal representation in the Council. The presence of Government representatives in the Council will help to fulfill its commitment to maintain minimum wage as a mechanism to provide protection to workers at the lowest wage level.
The important Launching will be attended by the Deputy Prime Minister, Minister of Labour, Invalids and Social Affairs and the representatives of employers, employees and other stakeholders.