Reforming wage policy for workers towards living wage in Vietnam

Abstract

Currently, in Vietnam, wage policy is implemented through an important tool, the minimum wage. However, the reality shows that the use of the minimum wage to pay employees is still inadequate and far from reality. Instead of using the minimum wage, a number of developed countries have recently used a new concept in wage policy making, which is “living wage” with high efficiency. In line with the trend of international integration, a living wage needs to be recognized and researched and applied in practice in Vietnam to bring about more positive effects, ensuring the life of workers and the whole country the sustainable development of the business. The article uses information and secondary data to analyze the current situation of minimum wages, scientific basis for living wages and policy implications to aim at workers with a living wage in the future.