Has the latest regional minimum hourly wage schedule applicable from July 1, 2024 been released? What are the regional minimum wages for 2024?
Has the latest regional minimum wage chart by the hour applicable from July 01, 2024, been released?
The National Wage Council has agreed and finalized a proposal to increase the regional minimum wage by 6% from July 1, 2024, to present to the Government of Vietnam for consideration and decision.
If the proposal is approved, the minimum wage for Region I will increase from 4.68 million VND/month to approximately 4.96 million VND/month (an additional 280,000 VND); Region II will increase from 4.16 million VND/month to approximately 4.41 million VND/month (an increase of 250,000 VND); Region III will increase from 3.64 million VND/month to approximately 3.86 million VND/month (an increase of 220,000 VND); Region IV will increase from 3.25 million VND/month to approximately 3.45 million VND/month (an increase of 200,000 VND).
For the hourly regional minimum wage, the National Wage Council also agreed to an increase of 6% from July 1, 2024.
To be specific, Region I will increase from 22,500 VND/hour to approximately 23,800 VND/hour; Region II will increase from 20,000 VND/hour to approximately 21,000 VND/hour; Region III will increase from 17,500 VND/hour to approximately 18,600 VND/hour; Region IV will increase from 15,600 VND/hour to approximately 16,600 VND/hour.
Thus, according to the proposal agreed upon by the National Wage Council, the regional minimum wage by the hour will increase by 6% from July 1, 2024.
The latest regional minimum wage chart by the hour applicable from July 01, 2024 (estimated) is as follows:
| Region | Hourly Minimum Wage
(Unit: VND/hour) || --- | --- || Region I | 23,800 || Region II | 21,000 || Region III | 18,600 || Region IV | 16,600 |
The above regional minimum wage chart has been determined according to the final plan agreed upon by the National Wage Council. However, the detailed and official regional minimum wage chart applicable from July 01, 2024, needs to await approval and issuance by the Government of Vietnam in the near future.
Has the latest regional minimum wage chart by the hour applicable from July 01, 2024, been released? What is the regional minimum wage in 2024? (Image from the Internet)
How is the regional minimum wage applied?
According to the provisions of Article 4 Decree 38/2022/ND-CP, the regional minimum wage is applied as follows:
- The monthly minimum wage is the lowest salary used as a basis for negotiating and paying wages to employees who are paid monthly, ensuring that the wage according to the job or position of the employee who works for the full normal working hours in the month and completes the agreed labor quota or work is not lower than the monthly minimum wage.
- The hourly minimum wage is the lowest salary used as a basis for negotiating and paying wages to employees who are paid hourly, ensuring that the wage according to the job or position of the employee who works for one hour and completes the agreed labor quota or work is not lower than the hourly minimum wage.
- For employees who are paid weekly, daily, product-based, or lump sum wages, the wages of these payment forms, when converted to monthly or hourly salaries, shall not be lower than the monthly minimum wage or hourly minimum wage. The converted monthly or hourly salary is based on the normal working hours selected by the employer in accordance with labor law as follows:
+ The converted monthly salary is the weekly salary multiplied by 52 weeks divided by 12 months; or the daily salary multiplied by the number of normal working days in the month; or the product-based, lump sum salary performed during normal working hours in the month.
+ The converted hourly salary is the weekly or daily salary divided by the number of normal working hours in a week or day; or the product-based, lump sum salary divided by the number of working hours during normal working hours to produce the product or perform the lump sum task.
How is the organizational structure of the National Wage Council regulated?
According to the provisions of Article 51 Decree 145/2020/ND-CP, the organizational structure of the National Wage Council is as follows:
- The National Wage Council consists of 17 members, including: 05 members representing the Ministry of Labor, Invalids and Social Affairs; 05 members representing the Vietnam General Confederation of Labor; 05 members representing some central employer representative organizations; 02 members are independent experts (hereinafter referred to as independent members). Among them:
+ The Chairman of the National Wage Council is a Deputy Minister of the Ministry of Labor, Invalids and Social Affairs;
+ 03 Vice-Chairmen of the National Wage Council, including:
01 Vice-Chairman of the Council is the Vice-President of the Vietnam General Confederation of Labor;01 Vice-Chairman of the Council is the Vice-President of the Vietnam Chamber of Commerce and Industry;01 Vice-Chairman of the Council is the Vice-President of the Vietnam Cooperative Alliance;
+ The remaining members of the National Wage Council include:
04 members representing the Ministry of Labor, Invalids and Social Affairs;04 members representing the Vietnam General Confederation of Labor;03 members representing central employer representative organizations (including 01 member representing the Vietnam Association of Small and Medium Enterprises, 02 members representing two central industrial associations using many employees);02 independent members who are experts and scientists in the fields of labor, wages, socio-economics (excluding experts and scientists working at agencies, units, research institutes, and universities under the Ministry of Labor, Invalids and Social Affairs, the Vietnam General Confederation of Labor, and central employer representative organizations).
- The Prime Minister of the Government of Vietnam appoints and dismisses the Chairman, Vice-Chairmen of the National Wage Council as stipulated in points a and b, clause 1, Article 51 of Decree 145/2020/ND-CP and authorizes the Minister of the Ministry of Labor, Invalids and Social Affairs to appoint and dismiss other members of the National Wage Council as stipulated in point c, clause 1, Article 51 of Decree 145/2020/ND-CP. The Chairman, Vice-Chairmen, and members of the National Wage Council work concurrently. The appointment term of the National Wage Council members does not exceed 05 years.
- The National Wage Council has a Technical Division and a Standing Division to assist the Council and the Chairman of the Council in preparing technical reports related to the Council's tasks and performing the Council's administrative work. Members of the Technical Division and the Standing Division are personnel from the member agencies of the Council, related agencies, and organizations, working concurrently.
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