Vietnam: What is the expected region-based minimum wages in region I from July 1, 2024? What subregions does the Region I include?
Vietnam: What is the expected region-based minimum wages in region I from July 1, 2024?
On December 20th, the Vietnam National Salary Council agreed and finalized the proposal to increase the region-based minimum wages by 6% from July 1st, 2024, for the government's consideration.
Specifically, Deputy Minister of Labor, Invalids and Social Affairs, Chairman of the National Salary Council, Le Van Thanh, stated that the council has agreed on a 6% wage increase. This is an appropriate level and has the consensus of the members, including representatives from the Vietnam General Confederation of Labor and the Vietnam Chamber of Commerce and Industry (VCCI). The wage increase will take effect from July 1st, 2024.
If approved, the expected monthly region-based minimum wages will increase as follows:
- Region I: will increase from 4.68 million VND/month to about 4.96 million VND/month (an additional 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 the hourly region-based minimum wages, the Vietnam National Salary Council also agreed on a 6% increase starting from July 1st, 2024. The expected 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 National Salary Council, both the hourly and monthly region-based minimum wages will increase by 6% from July 1st, 2024.
If approved by the government, in the highest region (Region I), the region-based minimum wage per hour will increase to about 16,600 VND/hour and the region-based minimum wage per month will increase to about 4.96 million VND/month (an increase of 250,000 VND).
Vietnam: What is the expected region-based minimum wages in region I from July 1, 2024? (Image from the Internet)
Vietnam: What subregions does the Region I 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 I includes the following subregions:
- Urban/suburban districts of Hanoi City, including: Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, and Chuong My, and Son Tay Town;
- Ha Long City of Quang Ninh Province;
- Urban/suburban districts of Hai Phong City, including: Thuy Nguyen, An Duong, An Lao, Vinh Bao, Tien Lang, Cat Hai and Kien Thuy;
- Thu Duc City and other urban/suburban districts of Ho Chi Minh City, including: Cu Chi, Hoc Mon, Binh Chanh and Nha Be;
- Bien Hoa City, Long Khanh City and other suburban districts of Dong Nai Province, including: Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom and Xuan Loc;
- Thu Dau Mot City, Thuan An City, Di An City, Ben Cat Town, Tan Uyen Town, and other suburban districts of Binh Duong Province, including: Bau Bang, Bac Tan Uyen, Dau Tieng and Phu Giao;
- Vung Tau City and Phu My Town of Ba Ria – Vung Tau Province.
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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