09:27 | 22/12/2023

From July 1, 2024: To increase the region-based minimum wages in Vietnam by 6% to nearly 5 million VND/month?

From July 1, 2024: To increase the region-based minimum wages in Vietnam by 6% to nearly 5 million VND/month? H.V - Khanh Hoa.

From July 1, 2024: To increase the region-based minimum wages in Vietnam by 6% to nearly 5 million VND/month?

On the morning of December 20, the National Wage Council met for the second session in 2023, to discuss and negotiate a plan to adjust region-based minimum wages in 2024.

Speaking at the conclusion of the meeting, after listening to the opinions of relevant parties, Mr. Le Van Thanh, Deputy Minister of Labor, War Invalids and Social Affairs, Chairman of the National Wage Council said, all members Members of the National Wage Council present at the meeting voted to set the 2024 region-based minimum wage increase at 6%, effective from July 1, 2024.

Accordingly, from July 1, 2024: Apply the new region-based minimum wage level, increasing 6% of the region-based minimum wage level compared to the current region-based minimum wage level.

Thus, when increasing the region-based minimum wage level by 6%, the minimum wage level for 04 regions is expected to be as follows:

Region

Region-based minimum wage per month

(Unit: VND/month)

Region 1

4.960.000

Region 2

4.410.000

Region 3

3.860.000

Region 4

3.450.000

Accordingly, if the expected region-based minimum wage level is officially approved, the region-based minimum wage level 1 will be about 4.96 million VND/month, increasing to nearly 5 million VND with a 6% increase in the region-based minimum wage level from July 1, 2024.

From July 1, 2024: To increase the region-based minimum wages in Vietnam by 6% to nearly 5 million VND/month? (Picture from internet)

What are the current region-based minimum wages in Vietnam?

According to the provisions of Clause 1, Article 3 of Decree 38/2022/ND-CP, regulations on region-based minimum wages are as follows:

- The region-based statutory minimum wages per month and per hour paid to employees are provided for as follows:

Region

Statutory minimum wages per month

(Unit: VND/month)

Statutory minimum wages per hour

(Unit: VND/hour)

Region I

4.680.000

22.500

Region II

4.160.000

20.000

Region III

3.640.000

17.500

Region IV

3.250.000

15.600

- The list of areas of region I, region II, region III, and region IV is specified in the Appendix issued with Decree 38/2022/ND-CP.

What are the penalties for salary payment which are lower than the region-based minimum wages in Vietnam?

Pursuant to the provisions of Article 17 of Decree 12/2022/ND-CP regulating penalties for violations against regulations on salaries as follows:

Violations against regulations on salaries
...
3. The following fines shall be imposed upon an employer for paying their employees salaries which are lower than the statutory minimum wages announced by the Government:
a) A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed if the violation involves 01 - 10 employees;
b) A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed if the violation involves 11 - 50 employees;
c) A fine ranging from VND 50.000.000 to VND 75.000.000 shall be imposed if the violation involves 51 employees or more.
4. The following fines shall be imposed upon an employer for failing to pay or insufficiently paying employees, who are not covered by compulsory social insurance, health insurance or unemployment insurance as prescribed by law, in addition to and at the same time with salary payment, amounts of money equal to total sums of compulsory social insurance, compulsory health insurance, and unemployment insurance premiums payable by the employer:
a) A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed if the violation involves 01 - 10 employees;
b) A fine ranging from VND 5.000.000 to VND 8.000.000 shall be imposed if the violation involves 11 - 50 employees;
c) A fine ranging from VND 8.000.000 to VND 12.000.000 shall be imposed if the violation involves 51 - 100 employees;
d) A fine ranging from VND 12.000.000 to VND 15.000.000 shall be imposed if the violation involves 101 - 300 employees;
dd) A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed if the violation involves 301 employees or more.
5. Remedial measures
a) The employer that commits the violation specified in Clause 2 or Clause 3 of this Article is compelled to pay full salaries plus interests on late payments or insufficient payments of salary, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees.
b) The employer that commits the violation specified in Clause 4 of this Article is compelled to pay full amounts of money equal to total sums of compulsory social insurance, compulsory health insurance, and unemployment insurance premiums payable plus interests on such amounts, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees.

Thus, based on the above regulations, a fine ranging from VND 20.000.000 to VND 75.000.000 shall be imposed upon an employer for paying their employees salaries which are lower than the statutory minimum wages announced by the Government.

*Note: The above penalty level is the penalty level for employers who are individuals in violation. For employers who are organizations, the fine is doubled as prescribed in Clause 1, Article 6 of Decree 12/2022/ND-CP.

In addition to being fined, the employer is also compelled to pay full salaries plus interests on late payments or insufficient payments of salary, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees

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