In May 2024, will the region-based minimum wages increase by 6%? When will the official Decree on the increase of region-based minimum wages in Vietnam be issued?
- In May 2024, will the region-based minimum wages increase by 6%? When will the official Decree on the increase of region-based minimum wages in Vietnam be issued?
- What are the current region-based minimum wages for employees in Vietnam?
- What are the maximum normal working hours in Vietnam according to current regulations?
- What is the implementation of region-based minimum wages after salary reform in Vietnam?
In May 2024, will the region-based minimum wages increase by 6%? When will the official Decree on the increase of region-based minimum wages in Vietnam be issued?
On December 20, 2023, all members of the National Wage Council present at the meeting voted to finalize the increase in region-based minimum wages for 2024 at 6%, effective from July 1, 2024.
When increasing the region-based minimum wages by 6%, the expected division of enterprise regional wages into 4 regions is as follows:
Region | Region-based minimum wage per month (Unit: VND/month) | Region-based minimum wage per hour (Unit: VND/hour) |
Region I | 4.960.000 (increased by VND 280.000) | 23.800 |
Region II | 4.410.000 (increased by VND 250.000) | 21.000 |
Region III | 3.860.000 (increased by VND 220.000) | 18.600 |
Region IV | 3.450.000 (increased by VND 200.000) | 16.600 |
Pursuant to Appendix IV, Group V, there are specific tasks for various sectors and fields in 2024 (attached to Resolution 01/NQ-CP 2024). The Government has assigned the Ministry of Labor, Invalids and Social Affairs to take the lead in implementing these tasks. It is stated that the Government's Decree on the minimum wage for employees working under labor contracts must be completed in May 2024.
Therefore, it is possible that the Decree on the minimum wage for employees working under labor contracts will be issued in May 2024. According to the information mentioned above, the National Wage Council has finalized the increase in region-based minimum wages for 2024 at 6%, effective from July 1, 2024.
However, regarding the specific details of the increase, such as whether it will be 6% or a different percentage, this information will only be known once the official Decree is issued.
Source: Government News.
In May 2024, will the region-based minimum wages increase by 6%? When will the official Decree on the increase of region-based minimum wages in Vietnam be issued?
What are the current region-based minimum wages for employees in Vietnam?
Pursuant to the provisions of Clause 1, Article 3, Decree 38/2022/ND-CP stipulates the region-based minimum wage for employees 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 region-I, region-II, region-III and region-IV subregions is provided in the Appendix enclosed with Decree 38/2022/ND-CP.
What are the maximum normal working hours in Vietnam according to current regulations?
Pursuant to regulation on normal working hours, it is stipulated in Article 105 of the 2019 Labor Code as follows:
Normal working hours
1. Normal working hours shall not exceed 08 hours per day or 48 hours per week.
2. An employer has the right to determine the daily or weekly working hours and inform the employees accordingly. The daily working hours shall not exceed 10 hours per day and not exceed 48 hours per week where a weekly basis is applied.
The State encourages employers to apply 40-hour workweeks.
3. Employers shall limit the time of exposure to harmful elements in accordance with relevant National Technical Regulations and laws.
Thus, normal working hours shall not exceed 08 hours per day or 48 hours per week.
An employer has the right to determine the daily or weekly working hours and inform the employees accordingly. The daily working hours shall not exceed 10 hours per day and not exceed 48 hours per week where a weekly basis is applied.
The State encourages employers to apply 40-hour workweeks.
In addition, employers shall limit the time of exposure to harmful elements in accordance with relevant National Technical Regulations and laws.
What is the implementation of region-based minimum wages after salary reform in Vietnam?
Pursuant to Resolution 27-NQ/TW 2018, the implementation of region-based minimum wages after salary reform as follows:
- Continuously improve policies regarding monthly region-based minimum wages.
- Adjust region-based minimum wages to ensure the minimum living standards of workers and their families, taking into account factors such as the labor market, economic and social development (labor supply and demand, economic growth rate, consumer price index, labor productivity, employment, unemployment, and the ability of enterprises to pay).
- Improve the functions, tasks, and organizational structure of the National Wage Council, and include independent experts in the Council.
In addition, the management mechanism for wages and incomes in the private sector is guided as follows:
- Enterprises (including 100% state-owned enterprises) are allowed to determine their wage policies (including salary scales, wage tables, and labor standards), and pay wages not lower than the minimum wage set by the State and based on collective labor agreements suitable for the production and labor organization, the capacity of the enterprise, and publicly disclosed at the workplace.
- The State announces monthly and hourly region-based minimum wages, as well as average wages in the market for different occupations, and supports the provision of labor market information, without directly intervening in the wage policies of enterprises.
- Enterprises and employees negotiate and agree on wages, sign labor contracts, and pay wages based on productivity and labor results.
- Enterprises and representative organizations of workers negotiate and agree on wages, bonuses, and other incentive regimes within collective labor agreements or the regulations of the enterprise.
- Enhance the role and capacity of trade unions and the inspection and monitoring work of state management agencies.
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