The 15-strong National Wage Council, a government think-tank focused on minimum wage rates backed by the International Labor Organization, was officially founded in Hanoi Tuesday.
The council was established under a decision of Prime Minister Nguyen Tan Dung. It has five members each representing workers, employers and the Ministry of Labor, War Invalids and Social Affairs (MOLISA).
Pham Minh Huan, MOLISA's deputy chief, was appointed as the council's chairman.
The council, which works based on joint decision making by workers, employers and the government, will help to give legitimacy to minimum regional wage rates achieved by negotiation, according to the ILO.
The council will also enable workers and employer organizations to work more proactively in developing minimum wage proposals that should reflect needs and concerns of their members and people who are directly affected by minimum wage.
And through negotiations, the minimum wage is expected to be adjusted at a relevant level to help balance interests of workers and employers.
In addition, the operation of the council will allow more systematic wage-related data collection and analysis to play a more important role in minimum wage determination.
Based on the council's proposals, the government will decide minimum regional wage rates.
As scheduled, the newly established council will mull over minimum regional wage rate proposals for 2014 and submit them to the government this year.