Vietnam: What is the expected region-based minimum wages in region II from July 1, 2024? What subregions does the Region II include?
Vietnam: What is the expected region-based minimum wages in region II from July 1, 2024?
In the second meeting on increasing region-based minimum wages for workers, the Vietnam National Salary Council has unanimously proposed a 6% increase in region-based minimum wages to the government.
If approved, the minimum wages are expected to increase as follows:
- Region I will increase from 4.68 million VND/month to about 4.96 million VND/month (an increase of 280,000 VND).
- Region II will increase from 4.16 million VND/month to about 4.41 million VND/month (an increase of 250,000 VND).
- Region III will increase from 3.64 million VND/month to about 3.86 million VND/month (an increase of 220,000 VND).
- Region IV will increase from 3.25 million VND/month to about 3.45 million VND/month (an increase of 200,000 VND).
For region-based minimum wages per hour, the Vietnam National Salary Council also agreed on a 6% increase starting from July 1st, 2024. The specific increases are as follows:
Region I will increase from 22,500 VND/hour to about 23,800 VND/hour.
Region II will increase from 20,000 VND/hour to about 21,000 VND/hour.
Region III will increase from 17,500 VND/hour to about 18,600 VND/hour.
Region IV will increase from 15,600 VND/hour to about 16,600 VND/hour.
Therefore, according to the proposed plan agreed upon by the Vietnam National Salary Council, region-based minimum wages per hour will increase by 6% from July 1st, 2024.
Based on this, the expected region-based minimum wages in Region II are as follows:
Region | Region-based minimum wage per month (Unit: VND/month) | Region-based minimum wage per hour (Unit: VND/hour) |
Region II | 4.409.600 | 21.000 |
Vietnam: What is the expected region-based minimum wages in region II from July 1, 2024? (Image from the Internet)
Vietnam: What subregions does the Region II include?
Pursuant to the regulations in the List of subregions to which statutory minimum wages are applied from july 01, 2022 in the Appendix issued with Decree 38/2022/ND-CP, Region II includes the following subregions:
- Remaining suburban districts of Hanoi City;
- Remaining suburban districts of Hai Phong City;
- Hai Duong City of Hai Duong Province;
- Hung Yen City, My Hao Town and other suburban districts of Hung Yen Province, including: Van Lam, Van Giang and Yen My;
- Vinh Yen City, Phuc Yen City, and two suburban districts of Vinh Phuc Province, including Binh Xuyen and Yen Lac;
- Bac Ninh City, Tu Son City and other suburban districts of Bac Ninh Province, including: Que Vo, Tien Du, Yen Phong, Thuan Thanh Gia Binh and Luong Tai;
- Cam Pha City, Uong Bi City, Mong Cai City, Quang Yen Town and Dong Trieu Town of Quang Ninh Province;
- Thai Nguyen City, Song Cong City and Pho Yen City of Thai Nguyen Province;
- Hoa Binh City and Luong Son suburban district of Hoa Binh Province;
- Viet Tri City of Phu Tho Province;
- Lao Cai City of Lao Cai Province;
- Nam Dinh City and My Loc suburban district of Nam Dinh Province;
- Ninh Binh City of Ninh Binh Province;
- Vinh City, Cua Lo Town and two suburban districts of Nghe An Province, including Nghi Loc and Hung Yen;
- Dong Hoi City of Quang Binh Province;
- Hue City of Thua Thien Hue Province;
- Hoi An City and Tam Ky City of Quang Nam Province;
- Urban/suburban districts of Da Nang City;
- Nha Trang City and Cam Ranh City of Khanh Hoa Province;
- Da Lat City and Bao Loc City of Lam Dong Province;
- Phan Thiet City of Binh Thuan Province;
- Can Gio suburban district of Ho Chi Minh City;
- Tay Ninh City, Trang Bang Town, Hoa Thanh Town, and Go Dau suburban district of Tay Ninh Province;
- Two suburban districts of Dong Nai Province, including Dinh Quan and Thong Nhat;
- Dong Xoai City and two suburban districts of Binh Phuoc Province, including Chon Thanh and Dong Phu;
- Ba Ria City of Ba Ria – Vung Tau Province;
- Tan An City and suburban districts of Long An Province, including: Duc Hoa, Ben Luc, Thu Thua, Can Duoc and Can Giuoc;
- My Tho City and Chau Thanh suburban district of Tien Giang Province;
- Ben Tre City and Chau Thanh suburban district of Ben Tre Province;
- Vinh Long City and Binh Minh Town of Vinh Long Province;
- Urban districts of Can Tho City;
- Rach Gia City, Ha Tien City and Phu Quoc City of Kien Giang Province;
- Long Xuyen City and Chau Doc City of An Giang Province;
- Tra Vinh City of Tra Vinh Province;
- Bac Lieu City of Bac Lieu Province;
- Ca Mau City of Ca Mau Province.
Note: From April 10, 2023, two districts of Thuan Thanh and Que Vo in Bac Ninh province have been transformed into Thuan Thanh Town and Que Vo Town according to Resolution 723/NQ-UBTVQH15.
What is the application of the region-based minimum wages in Vietnam?
Pursuant to the provisions of Article 4 of Decree 38/2022/ND-CP, region-based minimum wages are currently applied as follows:
- The statutory minimum wage per month is the minimum wage used as the basis for any agreement between employers and employees on monthly salary and payment thereof. The job- or position-based salary of an employee who ensures the monthly normal working hours and has fulfilled his/her labor productivity norms or tasks as agreed shall not be lower than the statutory minimum wages per month.
- The statutory minimum wage per hour is the minimum wage used as the basis for any agreement between employers and employees on hourly salary and payment thereof. The job- or position-based salary paid for every working hour to an employee who has fulfilled his/her labor productivity norms or tasks as agreed shall not be lower than the statutory minimum wages per hour.
- In case an employee receives a weekly or daily salary, a piece-rate pay or a fixed pay, the wages paid to the employee, when converted into monthly or hourly salary, shall not be lower than the statutory minimum wage per month or per hour. The normal working hours-based converted monthly or hourly salary shall be subjected to the employer’s decision in accordance with regulations of law. To be specific:
+ The converted monthly salary shall equal the product of the weekly salary and 52 weeks divided by 12 months; or the daily salary multiplied by total normal working days in a month; or the piece-rate pay or fixed pay for the works performed during normal working hours in a month.
+ The converted hourly salary shall equal the weekly or daily salary divided by the normal working hours in a week or a day respectively; or the piece-rate pay or fixed pay divided by the working hours, considered as normal working hours, spent for producing a predetermined quantity of products or performing assigned works.
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