What are the statutory minimum wages applied in 5 municipalities of Vietnam? Which region has the highest statutory minimum wage?
What are the statutory minimum wages applied in 5 municipalities of Vietnam?
Currently, Vietnam has 05 municipalities, including:
- Hanoi
- Ho Chi Minh City
- Hai Phong City
- Da Nang City
- Can Tho City
Accordingly, in comparison with Decree 38/2022/ND-CP, the region-based statutory minimum wages applied in 5 municipalities of Vietnam are specified as follows:
Area | Statutory minimum wages per month (Unit: VND/month) | Statutory minimum wages per hour (Unit: VND/hour) |
Hanoi | ||
- Urban/suburban districts of Hanoi City, including: Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, and Chuong My, and Son Tay Town | 4.680.000 | 22.500 |
- Remaining suburban districts of Hanoi City | 4.160.000 | 20.000 |
Ho Chi Minh City | ||
- Thu Duc City and other urban/suburban districts of Ho Chi Minh City, including: Cu Chi, Hoc Mon, Binh Chanh and Nha Be | 4.680.000 | 22.500 |
- Can Gio suburban district of Ho Chi Minh City | 4.160.000 | 20.000 |
Hai Phong City | ||
- Urban/suburban districts of Hai Phong City, including: Thuy Nguyen, An Duong, An Lao, Vinh Bao, Tien Lang, Cat Hai and Kien Thuy | 4.680.000 | 22.500 |
- Remaining suburban districts of Hai Phong City. | 4.160.000 | 20.000 |
Da Nang City | 4.160.000 | 20.000 |
Can Tho City | ||
- The urban districts of Can Tho city; | 4.160.000 | 20.000 |
- The suburban districts of Can Tho city; | 3.640.000 | 17.500 |
Which region has the highest statutory minimum wage in Vietnam?
Pursuant to Decree 38/2022/ND-CP, region-based statutory minimum wages are determined 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 |
Accordingly, Region I has the highest regional minimum wage (4.680.000 VND/month and 22,500 VND/hour).
What are the remarks upon the determination of a subregion and application of the statutory minimum wages in Vietnam?
Pursuant to the provisions of Clause 3 Article 3 of Decree 38/2022/ND-CP, Article 4 of Decree 38/2022/ND-CP, the statutory minimum wage is the minimum wage used as the basis for any agreement between employers and employees on salary and payment thereof. The job- or position-based salary of an employee who ensures normal working hours and has fulfilled his/her labor productivity norms or tasks as agreed shall not be lower than the statutory minimum wages. To be specific:
Determination of a subregion as the basis for application of the statutory minimum wages shall be conducted based on the employer’s place of operation. To be specific:
a) An employer located in a specific subregion shall apply the respective statutory minimum wage applied thereto.
b) In the event that an employer has its affiliates and/or branches located in different subregions to which different statutory minimum wages apply, such affiliates and/or branches must apply the respective statutory minimum wages applied thereto.
c) If an employer is located in an industrial park or export processing zone located in the territory containing two or more subregions to which different statutory minimum wages apply, the highest statutory minimum wage shall apply.
d) If an employer is located in a subregion which is renamed or divided, the statutory minimum wage applied to that subregion before it is renamed or divided shall still apply until new regulations promulgated by the Government come into force.
dd) If an employer is located in a subregion which is converted or established from a subregion or by consolidation of two or more subregions to which different statutory minimum wages apply, it shall apply the highest statutory minimum wage.
e) In case an employer is located in a provincial city which is established from one or more subregions in the region IV, it shall apply the statutory minimum wage applied to the remaining provincial cities as prescribed in Clause 3 of the Appendix enclosed herewith.
Application of the statutory minimum wages is specified as follows:
Application of statutory minimum wages
1. 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.
2. 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.
3. 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:
a) 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.
b) 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.
Thus, the remarks upon the determination of a subregion and application of the statutory minimum wages in Vietnam are specified above.
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