What are the specific highest and lowest amounts of region-based minimum wages after the salary reform in Vietnam in 2024?
- What are the specific highest and lowest amounts of region-based minimum wages after the salary reform in Vietnam in 2024?
- Vietnam: Will the Decree on region-based minimum wage be issued in May 2024?
- What are the current region-based minimum wages in Vietnam? What is the application of region-based minimum wages?
What are the specific highest and lowest amounts of region-based minimum wages after the salary reform in Vietnam in 2024?
On December 20th, the National Wage Council agreed and finalized the proposal to increase the region-based minimum wage by 6% starting from July 1st, 2024, for the Government's consideration.
Specifically, Deputy Minister of Labor, Invalids and Social Affairs and Chairman of the National Wage 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 be implemented from July 1st, 2024.
If the proposal is approved, the minimum wage is expected to increase as follows:
- Region I will increase from 4.68 million VND/month to approximately 4.96 million VND/month (an increase of 280,000 VND);
- Region II will increase from 4.16 million VND/month to approximately 4.41 million VND/month (an increase of 250,000 VND);
- Region III will increase from 3.64 million VND/month to approximately 3.86 million VND/month (an increase of 220,000 VND);
- Region IV will increase from 3.25 million VND/month to approximately 3.45 million VND/month (an increase of 200,000 VND).
For the region-based minimum wage per hour, the National Wage Council also agreed on a 6% increase from July 1st, 2024, as follows:
- Region I will increase from 22,500 VND/hour to approximately 23,800 VND/hour;
- Region II will increase from 20,000 VND/hour to approximately 21,000 VND/hour;
- Region III will increase from 17,500 VND/hour to approximately 18,600 VND/hour;
- Region IV will increase from 15,600 VND/hour to approximately 16,600 VND/hour.
Therefore, according to the proposed plan agreed upon by the National Wage Council, the region-based minimum wage will increase by 6% from July 1st, 2024.
Accordingly, the detailed region-based minimum wage table for 2024 (estimated) is as follows:
Region | Region-based minimum wage per month (Unit: VIND/month) | Region-based minimum wage per hour (Unit: VIND/hour) |
Region 1 | 4.960.800 | 23.800 |
Region 2 | 4.409.600 | 21.000 |
Region 3 | 3.858.400 | 18.600 |
Region 4 | 3.445.000 | 16.600 |
Therefore, according to the proposed plan agreed upon by the National Wage Council:
- The highest region-based minimum wage is 4,960,800 VND/month or 23,800 VND/hour.
- The lowest region-based minimum wage is 3,445,000 VND/month or 16,600 VND/hour.
What are the specific highest and lowest amounts of region-based minimum wages after the salary reform in Vietnam in 2024?
Vietnam: Will the Decree on region-based minimum wage be issued in May 2024?
The Government has just issued Resolution 01/NQ-CP in 2024 on the main tasks and solutions for implementing the Economic-Social Development Plan and State Budget Estimate for 2024, which includes important directions related to salary reform.
According to Appendix IV attached to Resolution 01/NQ-CP in 2024, the Government has assigned the Ministry of Labor, Invalids and Social Affairs to take the lead in completing the Decree on region-based minimum wage for employees under employment contracts in May 2024.
Therefore, according to the proposed plan agreed upon by the National Wage Council, the region-based minimum wage will increase by 6% from July 1st, 2024. According to the latest directive in Resolution 01/NQ-CP in 2024, the Decree on region-based minimum wage for employees under employment contracts will be completed in May 2024. However, the exact details will be known once the official Decree is completed and takes effect.
What are the current region-based minimum wages in Vietnam? What is the application of region-based minimum wages?
Currently, region-based minimum wage is regulated in Article 3 of Decree 38/2022/ND-CP with the following levels:
Region | Region-based minimum wage per month (Unit: VIND/month) | Region-based minimum wage per hour (Unit: VIND/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 to which the region-based minimum wages are applied from July 1, 2022 is provided in the Appendix enclosed with Decree 38/2022/ND-CP.
Pursuant to the provisions of Article 4 of Decree 38/2022/ND-CP, region-based minimum wage is 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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