From July 1, 2024, what is the expected region-based minimum wage in region IV when region-based minimum wages increase by 6% in Vietnam?
- From July 1, 2024, what is the expected region-based minimum wage in region IV when region-based minimum wages increase by 6% in Vietnam?
- Vietnam: What is the current region-based minimum wage in Region IV and how is it applied?
- What are rhe region-based minimum wages after the salary reform in Vietnam in 2024?
From July 1, 2024, what is the expected region-based minimum wage in region IV when region-based minimum wages increase by 6% in Vietnam?
On December 20th, the Vietnam National Salary Council reached a consensus and finalized the proposal to increase region-based minimum wages by 6% starting from July 1st, 2024, which will be submitted to the government for consideration.
Specifically, Mr. Le Van Thanh, Deputy Minister of Labor - Invalids and Social Affairs, and Chairman of the Vietnam National Salary Council, stated that the council agreed on a 6% wage increase. This is an appropriate level and has the consensus of all 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 increases in region-based minimum wages are 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 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 Vietnam National Salary Council, the expected region-based minimum wages in Region IV are as follows:
Region | Region-based minimum wages per month (Unit: VND/month) | Region-based minimum wages per hour (Unit: VND/hour) |
Region IV | 3.445.000 | 16.600 |
From July 1, 2024, what is the expected region-based minimum wage in region IV when region-based minimum wages increase by 6% in Vietnam? (Image from the Internet)
Vietnam: What is the current region-based minimum wage in Region IV and how is it applied?
Currently, region-based minimum wages are regulated in Article 3 of Decree 38/2022/ND-CP.
Region-based minimum wages in region IV are currently as follows:
Region | Region-based minimum wages per month (Unit: VND/month) | Region-based minimum wages per hour (Unit: VND/hour) |
Region IV | 3.250.000 | 15.600 |
The list of subregions of region I, region II, region III, and region IV is specified in the List of subregions to which statutory minimum wages from July 1, 2022 in the Appendix issued with Decree 38/2022/ND-CP.
Pursuant to the provisions of Article 4 of Decree 38/2022/ND-CP, region-based minimum wages in general and region-based minimum wages in region IV are 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.
What are rhe region-based minimum wages after the salary reform in Vietnam in 2024?
Pursuant to the provisions in Section II of Resolution 27-NQ/TW in 2018, the salary reform for region-based minimum wages in 2024 can be summarized as follows:
- Continuously improve policies regarding region-based minimum wages per month.
- Adjust region-based minimum wages to ensure the minimum living standards of workers and their families, taking into account the relationship with labor market factors and socio-economic development (labor supply and demand, economic growth rate, consumer price index, labor productivity, employment, unemployment, and the payment capacity of businesses).
- Reorganize the functions, tasks, and organizational structure of the Vietnam National Salary Council; supplement independent experts to participate in the Council.
In addition, the guidelines for managing wages and incomes in the private sector are as follows:
- Enterprises (including 100% state-owned enterprises) are allowed to determine their own wage policies (including wage scales, tables, and labor standards) and pay wages not lower than the minimum wage announced by the State and based on collective labor agreements suitable for the production and labor organization, the capacity of the enterprise, and openly disclosed at the workplace.
- The State announces region-based minimum wages per month and per hour, average wages on the market for different occupations, and provides support in supplying labor market information, without directly intervening in the wage policies of enterprises.
- Enterprises and workers negotiate and agree on wages, sign labor contracts, and pay wages based on productivity and labor results.
- Enterprises and labor representative organizations negotiate and agree on wages, bonuses, and other incentive regimes within collective labor agreements or within the enterprise's regulations.
- Strengthen the role and capacity of trade unions and the inspection and monitoring work of state management agencies.
LawNet
