The increase in the minimum wage is entirely in line with the goal of promoting domestic consumption demand, especially in the context of increasing living costs. In addition, raising the minimum wage is also one of the moves to curb inflation of the government.
Even so, the minimum wage in most ASEAN countries is still significantly lower than developed economies in Asia and around the world.
The Indonesian labor market has a significant difference in the minimum wage increase among localities. The monthly salary is published by the council in different provinces.
In October last year, the country's labor minister issued a circular authorizing local governments to increase the minimum wage to 8.51% for 2020.
Jakarta continues to be the leader in the minimum wage at 4,200,000 rupiahs (about 298 USD). While the lowest is Central Java province with 1,742 rupiahs (about 123 USD).
Although the minimum wage has increased every year, labor productivity in Indonesia remains relatively low.
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In the 2020 budget announcement, the Malaysian government is expected to raise the minimum wage in 57 major cities from 1,100 ringgit (about 270 USD) to 1,200 (about 295 USD). However, the minimum wage in rural areas will remain at 1,100 ringgit.
In Cambodia, the minimum wage increase is mainly to ensure the interests of textile and footwear workers. The salary here has increased to US $ 190 in 2020, from US $ 182 in 2019.
Despite a significant increase, the new wage will not affect the competitive advantage of the textile industry as the government continues to postpone taxes and eliminate export management fees.
The new wage will affect more than 800,000 textile and garment workers, the country's largest workforce by contributing more than $ 10 billion to the economy.
Laos has not implemented minimum wage increases since 2018. Previously, the minimum wage for all businesses and enterprises in the country was increased to 124 USD per month.
The minimum daily wage in Myanmar is revised every two years. This salary is currently at 3.29 USD for 8 hours of work per day. After a review of the cost of living and health in the country, Myanmar's union proposed raising a new wage in 2020 to 4.88 USD/day (about 126 USD).
The Philippines has a minimum daily wage that varies by region, from USD 5.7 to USD 10.61 per day. It is also one of the countries with the highest salaries in ASEAN, besides Indonesia, Thailand, and Vietnam.
The Thai government has just announced a minimum wage increase from US $ 10 to US $ 11 per day starting in early 2020.
This is the second salary increase in seven years in this country. In 9 of these localities, the increase was 6 baht (about 0.2 USD), while the rest increased by only 5 baht (about 0.16 USD).
Along with the high economic growth rate over the past time, Vietnam has also considered raising wages for its workers to control inflation.
The monthly minimum wage has increased to 5.7% from January 2020, higher than 5.3% in 2019. With the new increase, the minimum wage in the region I (including Hanoi and Ho Chi Minh City) will increase to VND 4,420,000 (about USD 190). Meanwhile the lowest region IV also increased from 2,920,000 to 3,070,000 VND (about 132 USD).
In addition, trained workers will be paid at least 7% higher than the current minimum wage.
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