From July 1, 2024, which areas will apply the highest regional minimum wage? What are the criteria for the State to adjust the regional minimum wage?

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Which areas will apply the highest regional minimum wage from July 1, 2024?

Based on Clause 1 Article 3 Decree 74/2024/ND-CPhttps://thuvienphapluat.vn/van-ban/Lao-dong-Tien-luong/Nghi-dinh-74-2024-ND-CP-muc-luong-toi-thieu-lao-dong-lam-viec-theo-hop-dong-603278.aspx?anchor=dieu_3, the monthly minimum wage and hourly minimum wage for employees working for employers in specific regions are as follows:

The list of areas applying the highest regional minimum wage is Region I with a regional minimum wage (4,960,000 VND/month and 23,800 VND/hour).

According to the Appendix issued with Decree 74/2024/ND-CP, Region I comprises the following areas:

- The districts and Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, Chuong My and the district-level town Son Tay under Hanoi city;

- The cities Ha Long, Uong Bi, Mong Cai and the district-level towns Quang Yen, Dong Trieu under Quang Ninh province;

- The districts Thuy Nguyen, An Duong, An Lao, Vinh Bao, Tien Lang, Cat Hai, Kien Thuy under Hai Phong city;

- Hai Duong city under Hai Duong province;

- The districts, Thu Duc city, and the districts Cu Chi, Hoc Mon, Binh Chanh, Nha Be under Ho Chi Minh City;

- The cities Bien Hoa, Long Khanh and the districts Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom, Xuan Loc, Thong Nhat under Dong Nai province;

- The cities Thu Dau Mot, Thuan An, Di An, Tan Uyen, Ben Cat and the districts Bau Bang, Bac Tan Uyen, Dau Tieng, Phu Giao under Binh Duong province;

- Vung Tau city, district-level town Phu My under Ba Ria - Vung Tau province;

- Tan An city and the districts Duc Hoa, Ben Luc, Can Giuoc under Long An province.

NOTE: There have been changes with adjustments of some areas from lower regional minimum wages to higher regional minimum wages.

Areas moved from Region II to Region I include:

- Quang Ninh province: The cities Uong Bi, Mong Cai and the district-level towns Quang Yen, Dong Trieu

- Hai Duong province: Hai Duong city

- Dong Nai province: Thong Nhat district

- Long An province: Tan An city and the districts Duc Hoa, Ben Luc, Can Giuoc.

Thus, employees currently working in these localities will be subject to the regional minimum wage from 4,160,000 VND/month to 4,960,000 VND/month, a rise of 800,000 VND/month.

From July 1, 2024, which areas will apply the highest regional minimum wage? Criteria for the Government to adjust the regional minimum wage? (Image from Internet)

What are the criteria for the Government to adjust the regional minimum wage?

Based on Article 91 of the 2019 Labor Code, the minimum wage is stipulated as follows:

Minimum Wage

1. The minimum wage is the lowest wage paid to an employee for the simplest job under normal working conditions, ensuring a minimum standard of living for the employee and their family, in line with socio-economic development conditions.

2. The minimum wage is established regionally, prescribed monthly and hourly.

3. The minimum wage is adjusted based on the minimum living standards of employees and their families; the correlation between the minimum wage and wages on the labor market; the consumer price index, economic growth rate; labor supply and demand; employment and unemployment; labor productivity; the payment capacity of enterprises.

4. The Government of Vietnam stipulates the details of this Article; decides and announces the minimum wage upon the recommendation of the National Wage Council.

Thus, according to the aforementioned regulations, the Government adjusts the regional minimum wage based on the following criteria:

- The minimum living standards of employees and their families;- The correlation between the minimum wage and wages on the labor market;- The consumer price index, economic growth rate;- Labor supply and demand;- Employment and unemployment; labor productivity;- The payment capacity of enterprises.

How is the regional applicability determined according to the workplace of the employer?

Based on Clause 3 Article 3 of Decree 74/2024/ND-CPhttps://thuvienphapluat.vn/van-ban/Lao-dong-Tien-luong/Nghi-dinh-74-2024-ND-CP-muc-luong-toi-thieu-lao-dong-lam-viec-theo-hop-dong-603278.aspx?anchor=dieu_3, the regional applicability is determined according to the place of business operations of the employer as follows:

- Employers operating in regions that apply the regional minimum wage regulations for that area.- Employers with units or branches operating in regions with different minimum wages apply the minimum wage regulations for the region where the unit or branch operates.- Employers operating in industrial parks and export processing zones located in areas with different minimum wages apply the highest regional minimum wage.- Employers operating in areas with changes in administrative unit names or divisions temporarily apply the minimum wage regulations for the area before the change until the Government of Vietnam has new regulations.- Employers operating in newly established areas from one or more areas with different minimum wages apply the minimum wage according to the area with the highest minimum wage.- Employers operating in cities directly under a province that are newly established from one or more areas under Region IV apply the minimum wage regulations for remaining provincial city areas listed in Clause 3 of the Appendix attached to Decree 74/2024/ND-CP.