After a long time of facing the pandemic, workers have continued getting hardships when the prices of goods escalate, due to rising gasoline prices. Along with the support packages of the Government and the province, the Decree No. 38/2022/ND-CP of the Government on increasing the regional minimum wage for employees takes effect from July 1 as a "cool breeze" giving more motivation for employees to overcome difficulties. Although the regional minimum wage increase this time is not much, it is enough to offset the price slippage, helping workers stabilize their lives to continue sticking with enterprises.
Over the past two years, the Covid-19 pandemic severely affected the activities of production and business, the lives of people, especially employees. At times, employees had to quit their jobs and their incomes were reduced. Therefore, they are looking forward to being raised the regional minimum wage soon.
The increase in the regional minimum wage at this time, instead of January 1, 2023, is a very high political determination of the Government. With an increase of 6% and the extension of the regional minimum wage increase to 18 months, instead of 12 months as before, it shows the Government's harmonious regulation in supporting workers while creating opportunities for enterprises to prepare plans on production and business.
The adjustment of the regional minimum wage will certainly have a direct impact on enterprises. This is because when wages increase, production costs increase. Therefore, product prices will also increase. However, most enterprises in the province agree with the policy of increasing the regional minimum wage that the Government has issued. After being affected by the epidemic, many enterprises are aware that in order to retain employees, the important issue is still the increase of wages. A reasonable minimum wage adjustment will bring "double benefits" for employees and enterprises. For employees, increasing wages is the driving force for them to increase productivity and help them stick with enterprises. For enterprises, increasing wages means the reduction of profits, but it creates a harmonious relationship, solving the problem of human resource shortage that occurred during the pandemic period.
In order to help enterprises overcome difficulties and stabilize production-business soon after the pandemic, the Government also previously issued many support policies on making tax exemption, reduction for enterprises; reducing corporate income tax, value added tax for enterprises with difficulties; supporting employers affected by Covid-19 from the Unemployment Insurance Fund…These policies have created motivation for businesses to soon recover and agreed with the policy of increasing the regional minimum wage to share difficulties with employees, gradually recovering and developing the labor market after the pandemic.
Reported by Le Quang-Translated by Kim Tin
