Hourly Minimum Wage: Definition and Current Regional Regulations
What is the minimum hourly wage?
Pursuant to the provisions of Clause 2, Article 4 of Decree 38/2022/ND-CP, the following regulations apply:
Application of the minimum wage
1. The monthly minimum wage is the lowest wage used as a basis for negotiating and paying wages for employees who are paid on a monthly basis, ensuring that the wage for the work or position of the employee working a sufficient number of regular working hours in a month and completing the agreed labor norm or task is not lower than the monthly minimum wage.
2. The hourly minimum wage is the lowest wage used as a basis for negotiating and paying wages for employees who are paid on an hourly basis, ensuring that the wage for the work or position of the employee working for an hour and completing the agreed labor norm or task is not lower than the hourly minimum wage.
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Thus, pursuant to the aforementioned regulations, the hourly minimum wage is the lowest wage used as a basis for negotiating and paying wages for employees who are paid on an hourly basis, ensuring that the wage for the work or position of the employee working for an hour and completing the agreed labor norm or task is not lower than the hourly minimum wage.
What is the hourly minimum wage? Currently, how is the hourly minimum wage defined across different regions? (Image from the internet)
Currently, how is the hourly minimum wage defined across different regions?
Pursuant to the provisions of Clause 1, Article 3 of Decree 38/2022/ND-CP, the monthly minimum wage and hourly minimum wage for employees working for employers by region are defined as follows:
| Region | Monthly minimum wage
(Unit: VND/month) | Hourly minimum wage
(Unit: VND/hour) || --- | --- | --- || Region 1 | 4,680,000 | 22,500 || Region 2 | 4,160,000 | 20,000 || Region 3 | 3,640,000 | 17,500 || Region 4 | 3,250,000 | 15,600 |
The hourly minimum wage by 4 regions is defined as follows:
- Region 1 is 22,500 VND/hour.- Region 2 is 20,000 VND/hour.- Region 3 is 17,500 VND/hour.- Region 4 is 15,600 VND/hour.
The hourly minimum wage has been applied from July 01, 2022, to the present.
In cases where employees are paid on a weekly, daily, piece-rate, or lump-sum basis, the wage of these payment forms, when converted into hourly wages, must not be lower than the hourly minimum wage.
How will penalties be imposed for paying wages lower than the minimum wage?
Pursuant to the provisions of Clause 3, Article 17 of Decree 12/2022/ND-CP, the following regulations apply:
Violations on wage regulations
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3. A fine shall be imposed on employers who pay employees less than the minimum wage prescribed by the Government of Vietnam as follows:
a) From 20,000,000 VND to 30,000,000 VND for violations involving from 01 to 10 employees;
b) From 30,000,000 VND to 50,000,000 VND for violations involving from 11 to 50 employees;
c) From 50,000,000 VND to 75,000,000 VND for violations involving from 51 employees or more.
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Clause 1, Article 6 of Decree 12/2022/ND-CP also stipulates as follows:
Fines, authority to impose fines, and principles for applying sanctions on repeated administrative violations
1. The fine amounts prescribed for violations specified in Chapters II, III, and IV of this Decree are for individuals, except for cases specified in Clauses 1, 2, 3, 5 of Article 7; Clauses 3, 4, 6 of Article 13; Clause 2 of Article 25; Clause 1 of Article 26; Clauses 1, 5, 6, 7 of Article 27; Clause 8 of Article 39; Clause 5 of Article 41; Clauses 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 of Article 42; Clauses 1, 2, 3, 4, 5, 6, 7, 8 of Article 43; Clauses 1, 2, 3, 4, 5, 6 of Article 45; Clause 3 of Article 46 of this Decree. The fine amounts for organizations are double the fine amounts for individuals.
Thus, pursuant to the aforementioned regulations, individual employers who pay hourly wages lower than the minimum wage will be fined as follows:
- From 20,000,000 VND to 30,000,000 VND for violations involving from 01 to 10 employees;- From 30,000,000 VND to 50,000,000 VND for violations involving from 11 to 50 employees;- From 50,000,000 VND to 75,000,000 VND for violations involving from 51 employees or more.
For organizations that pay hourly wages lower than the minimum wage, the fines will be as follows:
- From 40,000,000 VND to 60,000,000 VND for violations involving from 01 to 10 employees;- From 60,000,000 VND to 100,000,000 VND for violations involving from 11 to 50 employees;- From 100,000,000 VND to 150,000,000 VND for violations involving from 51 employees or more.
In addition, pursuant to Point a, Clause 5, Article 17 of Decree 12/2022/ND-CP, employers shall also be required to pay back the full owed wages along with interest on the delayed or insufficient wages to the employees, calculated based on the highest short-term deposit interest rate offered by state commercial banks at the time the violation is handled.
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