From July 01, 2024, which subjects are eligible for a 6% regional minimum wage increase in the 2024 wage reform?
From July 01, 2024, who will receive a 6% increase in the regional minimum wage during the 2024 wage reform?
On the morning of December 20, the National Wage Council held its second meeting of 2023 to discuss and negotiate the plan to adjust the regional minimum wage in 2024.
Concluding the meeting, after listening to the opinions of the relevant parties, Mr. Le Van Thanh, Deputy Minister of Labor, Invalids, and Social Affairs, Chairman of the National Wage Council stated that all members of the National Wage Council present at the meeting voted to finalize a 6% increase in the regional minimum wage for 2024, effective from July 1, 2024.
Thus, the National Wage Council will present this to the competent authorities for issuance of a Decree to implement.
The minimum wage is the lowest wage paid to workers performing the simplest jobs under normal labor conditions to ensure the minimum living standards for workers and their families, in line with socioeconomic development conditions (Clause 1, Article 91 of the Labor Code 2019).
Additionally, Clause 1, Article 2, and Article 3 of Decree 38/2022/ND-CP stipulate the subjects for applying the regional minimum wage as follows:
Applicable Subjects
1. Workers working under labor contracts as stipulated by the Labor Code.
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Minimum Wage Levels
1. The monthly and hourly minimum wage levels for workers working for employers are stipulated as follow:
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Thus, the 6% increase in the regional minimum wage from July 1, 2024, will apply to workers under labor contracts.
From July 01, 2024, who will receive a 6% increase in the regional minimum wage during the 2024 wage reform? (Image from the Internet)
What will the regional minimum wage be in 2024?
*Regional minimum wage from January 01, 2024 to June 30, 2024:
According to Clause 1, Article 3 of Decree 38/2022/ND-CP stipulating the minimum wage levels for workers as follows:
- The regional minimum wage levels stipulated per month and per hour for workers working for employers are as follows:
| Region | Monthly Minimum Wage
(Unit: VND/month) | Hourly Minimum Wage
(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 localities in Region I, Region II, Region III, and Region IV is specified in the Appendix issued with Decree 38/2022/ND-CP.
*Projected regional minimum wage from July 01, 2024:
| Region | Monthly Minimum Wage
(Unit: VND/month) | Hourly Minimum Wage
(Unit: VND/hour) || --- | --- | --- || Region I | 4,960,000 (increase by 280,000 VND) | 23,800 || Region II | 4,410,000 (increase by 250,000 VND) | 21,200 || Region III | 3,860,000 (increase by 220,000 VND) | 18,600 || Region IV | 3,450,000 (increase by 200,000 VND) | 16,600 |
Can wages be paid lower than the regional minimum wage?
Article 90 of the Labor Code 2019 stipulates wages as follows:
Wages
1. Wages are the amounts paid by employers to workers according to the agreement for performing a job, including job-based or title-based wages, allowances, and other supplementary amounts.
2. The job-based or title-based wage must not be lower than the minimum wage.
3. Employers must ensure equal pay without gender discrimination for workers performing jobs of equal value.
Thus, employers must pay wages to workers for performing their jobs, including job-based or title-based wages, allowances, and other supplementary amounts, but job-based or title-based wages must not be lower than the minimum wage.
Employers paying wages lower than the regional minimum wage will be penalized according to the provisions of Clause 3, Clause 5, Article 17 of Decree 12/2022/ND-CP as follows:
Violations regarding wages
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3. A fine for employers who pay workers less than the minimum wage stipulated by the Government of Vietnam as follows:
a) From 20,000,000 VND to 30,000,000 VND for violations involving 1 to 10 workers;
b) From 30,000,000 VND to 50,000,000 VND for violations involving 11 to 50 workers;
c) From 50,000,000 VND to 75,000,000 VND for violations involving 51 workers or more.
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5. Remediation actions
a) Employers are required to pay the full wage amount along with interest on the late or underpaid wages calculated at the highest interest rate for demand deposits announced by state-owned commercial banks at the time of the penalty, for violations stipulated in Clause 2, Clause 3 of this Article;
b) Employers are required to pay the full equivalent amount of mandatory social insurance, health insurance, and unemployment insurance contributions, along with interest on these amounts calculated at the highest interest rate for demand deposits announced by state-owned commercial banks at the time of the penalty, for violations stipulated in Clause 4 of this Article.
Employers paying wages lower than the regional minimum wage will be penalized according to the above regulation.
Additionally, employers are required to pay the full wage amount along with interest on the late or underpaid wages calculated at the highest interest rate for demand deposits announced by state-owned commercial banks at the time of the penalty for violations stipulated in Clause 3, Article 17 of Decree 12/2022/ND-CP.
Note: The above penalties apply to individuals. Penalties for organizations are double those for individuals.
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