The National Wage Council has officially concluded the regional minimum salary increase (RMSI) in 2020 after many previous proposals. Accordingly, RMSI in 2020 will increase by 5.5% compared to 2019. This increase will officially be submitted to the Government in the coming time. Binh Duong Newspaper interviewed enterprises and workers about this issue.
Workers of Dong Hung Industry Joint Stock Company (Di An Town) are excited about the information of the regional minimum salary increase in 2020.
All are ready for realization
With the annual salary increase roadmap, enterprises in the province were prepared to comply with the regulations. However, to companies with a large number of employees, expense of salary increase compared to 2019 is not a small number. On the other hand, together with RMSI, expenses for salaries, insurance, trade union fees... of businesses will also increase.
These increase amounts will be charged to production cost, which increase product price, leading to reduced competitiveness. Therefore, in order to survive in the market, enterprises are forced to improve their technology, promote the application of scientific and technical advances. This is a fairly effective solution for businesses to increase labor productivity and quality of production and business processes. That is the common thought of businesses in this interview.
Nguyen Thi Ha Binh, HR Manager of Bowker Vietnam Company (Thuan An town), said that the company's basic salary paid to employees was higher than RMSI. A new and unskilled employee gets a monthly salary of VND 4.8 million. In addition, they also receive monthly bonus. However, with RMSI, the company will also balance profits from production or boost production so that by early 2020 there would be additional expenses for salary increase and bonus for employees.
Dang Quang Duan, President of Apparel Far Eastern Vietnam Company (VSIP 1), said that in order to maintain sustainable development, RMSI meant an increase in cost of the company. But business would be not completely unbenefited by RMSI. Employee’s commitment to the company would be stronger and be motivated to improve productivity, quality and efficiency of their work. The company’s salary is now higher than RMSI, but when RMSI decision becomes effective, trade union will advise Directors Board to increase the support regime for employees.
Waiting for salary increase
Workers are very happy, when their salary increases a few hundred thousand VND. Worker’s life, especially migrant workers, is very difficult with many monthly expenses, such as accommodation rental, school fees for children, food, healthcare... all are burdens on their shoulders. Therefore, a salary increase of VND 240,000 / month makes workers’ spirit very exhilarated. Employees, who have higher salary than RMSI, will have more bonuses from their company, and will be motivated at work. Nguyen Ngoc Nhu Y, worker of Chi Hung Company (Tan Uyen town), said: "If RMSI becomes effective, workers will be very happy. However, the more the society develops, the more expensive the price is, our lives still have difficulties with the current salary”.
All workers are happy with salary increase, but this coupled with worry about rising prices. It can be seen, RMSI in 2020 would bring gains and losses for both employees and employers, but the annual salary increase is always expected and welcomed by everybody. Especially workers, they hope that when their salary increases, they would have an extra amount to cover their lives.
Reported by Thien Ly – Translated by Ngoc Huynh
