What is the statutory minimum wage for region 1 in Vietnam from July 1, 2024 under Decree 74? Which provinces are included in Region 1 under current regulations in Vietnam?
What is the statutory minimum wage for region 1 in Vietnam from July 1, 2024 under Decree 74?
On June 30, the Government of Vietnam issued Decree 74/2024/ND-CP increasing the monthly and hourly statutory minimum wage by 6%, based on the proposal from the Ministry of Labor, Invalids, and Social Affairs of Vietnam .
Decree 74/2024/ND-CP stipulates the statutory minimum wage levels for Employees working under labor contracts according to 4 regions effective from July 1, 2024, as follows:
Decree 74/2024/ND-CP stipulates the statutory minimum wage levels for Employees working under labor contracts as follows:
| Region | Monthly statutory minimum wage (Unit: VND/month) |
Hourly statutory minimum wage (Unit: VND/hour) |
| Region 1 | 4,960,000 (increase of 280,000 VND) | 23,800 |
| Region 2 | 4,410,000 (increase of 250,000 VND) | 21,200 |
| Region 3 | 3,860,000 (increase of 220,000 VND) | 18,600 |
| Region 4 | 3,450,000 (increase of 200,000 VND) | 16,600 |
The statutory minimum wage for Region 1 will increase to 4,960,000 VND starting from July 1, 2024.
Employees in Region 1 shall receive the lowest wage of 4,960,000 VND from July 1, 2024.
What is the statutory minimum wage for region 1 in Vietnam from July 1, 2024 under Decree 74? (Internet image)
Which provinces are included in Region 1 under current regulations in Vietnam?
Appendix issued in conjunction with Decree 74/2024/ND-CP defines areas included in Region 1 as follows:
- Districts and counties of Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, Chuong My and Son Tay town of Hanoi city;
- Ha Long, Uong Bi, Mong Cai cities and Quang Yen, Dong Trieu towns of Quang Ninh province;
- Districts and counties of Thuy Nguyen, An Duong, An Lao, Vinh Bao, Tien Lang, Cat Hai, Kien Thuy of Hai Phong city;
- Hai Duong city of Hai Duong province;
- Districts and cities of Thu Duc and districts of Cu Chi, Hoc Mon, Binh Chanh, Nha Be of Ho Chi Minh city;
- Bien Hoa, Long Khanh cities and Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom, Xuan Loc, Thong Nhat of Dong Nai province;
- Thu Dau Mot, Thuan An, Di An, Tan Uyen, Ben Cat cities and Bau Bang, Bac Tan Uyen, Dau Tieng, Phu Giao districts of Binh Duong province;
- Vung Tau city, Phu My town of Ba Ria - Vung Tau province;
- Tan An city and Duc Hoa, Ben Luc, Can Giuoc districts of Long An province.
According to Clause 3, Article 3 of Decree 74/2024/ND-CP, the regional application is determined by the location of the employer's activity as follows:
- Employers with units or branches operating in areas with different statutory minimum wage levels shall apply the statutory minimum wage stipulated for the area where the unit or branch operates.
- Employers operating in industrial zones or export processing zones located in areas with different statutory minimum wage levels shall apply the highest statutory minimum wage applicable to those areas.
- Employers operating in areas where the name or administrative unit changes shall temporarily apply the statutory minimum wage stipulated for the area before the name or administrative change until new regulations are issued by the Government of Vietnam.
- Employers operating in newly established areas derived from one or multiple areas with different statutory minimum wages shall apply the highest statutory minimum wage stipulated for those areas.
When will employees in Vietnam be paid after quitting their jobs?
Article 48, Clause 1 of Labor Code 2019, specifies the responsibilities of both parties upon termination of a labor contract. To be specific:
Responsibilities upon Termination of Labor Contract
1. Within 14 working days from the date of termination of the labor contract, both parties must settle fully all amounts related to the entitlements of each party, except for the following cases which can be extended but not beyond 30 days:
a) The employer who is not an individual ceases operations;
b) The employer restructures, changes technology, or for economic reasons;
c) Division, separation, merger, consolidation; sale, lease, conversion of business type; transfer of ownership, usage rights of enterprise or cooperative properties;
d) Due to natural disasters, fires, enemy sabotage, or dangerous epidemics.
After the termination of the labor contract, the employer is responsible for paying the salary to the employee within 14 working days.
*Note: The employer may extend the payment period to employees, but not beyond 30 days in the following cases:
- The employer who is not an individual ceases operations
- Termination of the labor contract due to restructuring, technological change, or economic reasons
- The enterprise is divided, separated, merged, consolidated; sold, leased, its business type converted
- Transfer of ownership, usage rights of enterprise or cooperative properties
- Termination of the labor contract due to natural disasters, fires, enemy sabotage, or dangerous epidemics
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