What is the statutory minimum wage in region 2 in Vietnam after an increase increases from July 1, 2024? Which areas are included in region 2 under current regulations in Vietnam?
What is the statutory minimum wage in region 2 in Vietnam after an increase increases from July 1, 2024?
On June 30, the Government of Vietnam issued Decree 74/2024/ND-CP raising the monthly and hourly minimum wage by 6%, based on the proposal of the Ministry of Labor, War Invalids, and Social Affairs.
In Decree 74/2024/ND-CP, the minimum wage for workers working under labor contracts is stipulated for the four regions effective from July 1, 2024, as follows:
| Region | Monthly Minimum Wage (Unit: VND/month) |
Hourly Minimum Wage (Unit: VND/hour) |
| Region I | 4,960,000 (increased by 280,000 VND) | 23,800 |
| Region II | 4,410,000 (increased by 250,000 VND) | 21,200 |
| Region III | 3,860,000 (increased by 220,000 VND) | 18,600 |
| Region IV | 3,450,000 (increased by 200,000 VND) | 16,600 |
The minimum wage in region 2 will be increased from July 1, 2024, to 4,410,000 VND. The monthly minimum wage in region 2 is the lowest wage in region 2, which serves as the basis for negotiation and wage payment for workers applying the form of monthly wage.
Therefore, workers earning the lowest wage in region 2 will receive 4,410,000 VND from July 1, 2024.
What is the statutory minimum wage in region 2 in Vietnam after an increase increases from July 1, 2024? (Internet image)
Which areas are included in region 2 under current regulations in Vietnam?
In the Appendix issued together with Decree 74/2024/ND-CP, the areas included in Region 2 are as follows:
- The remaining districts belong to Hanoi city;
- Lao Cai city belongs to Lao Cai province;
- Thai Nguyen, Song Cong and Pho Yen cities belong to Thai Nguyen province;
- Hoa Binh city and Luong Son district belongs to Hoa Binh province;
- Viet Tri city belongs to Phu Tho province;
- Bac Giang city, Viet Yen town and Yen Dung district belongs to Bac Giang province;
- Vinh Yen, Phuc Yen cities and Binh Xuyen and Yen Lac districts belong to Vinh Phuc province;
- Bac Ninh and Tu Son cities; Thuan Thanh and Que Vo towns and Tien Du, Yen Phong, Gia Binh and Luong Tai districts belong to Bac Ninh province;
- Hung Yen city, My Hao town and Van Lam, Van Giang and Yen My districts belong to Hung Yen province;
- Chi Linh city, Kinh Mon town and Cam Giang, Binh Giang, Tu Ky, Gia Loc, Nam Sach and Kim Thanh districts belong to Hai Duong province;
- Cam Pha city belongs to Quang Ninh province;
- The remaining districts belong to Hai Phong city;
- Thai Binh city belongs to Thai Binh province;
- Nam Dinh city and My Loc district belong to Nam Dinh province;
- Ninh Binh city belongs to Ninh Binh province;
- Thanh Hoa city, Sam Son city and Bim Son and Nghi Son towns belong to Thanh Hoa province;
- Vinh city, Cua Lo town and Nghi Loc and Hung Nguyen districts belong to Nghe An province;
- Dong Hoi city belongs to Quang Binh province;
- Hue city belongs to Thua Thien Hue province;
- Hoi An and Tam Ky cities belong to Quang Nam province;
- Districts and counties belong to Da Nang city;
- Nha Trang, Cam Ranh cities and Ninh Hoa town belong to Khanh Hoa province;
- Da Lat and Bao Loc cities belong to Lam Dong province;
- Phan Thiet city belongs to Binh Thuan province;
- Can Gio district belongs to Ho Chi Minh City;
- Tay Ninh city, Trang Bang town, Hoa Thanh town and Go Dau district of Tay Ninh province;
- Dinh Quan, Tan Phu, Cam My districts of Dong Nai province;
- Dong Xoai city, Chon Thanh town and Dong Phu district of Binh Phuoc province;
- Ba Ria city of Ba Ria - Vung Tau province;
- Thu Thua, Can Duoc districts and Kien Tuong town of Long An province;
- My Tho city and Chau Thanh district of Tien Giang province;
- Ben Tre city and Chau Thanh district of Ben Tre province;
- Vinh Long city and Binh Minh town of Vinh Long province;
- Districts of Can Tho city;
- Rach Gia, Ha Tien, Phu Quoc cities of Kien Giang province;
- Long Xuyen, Chau Doc cities of An Giang province;
- Tra Vinh city of Tra Vinh province;
- Soc Trang city of Soc Trang province;
- Bac Lieu city of Bac Lieu province;
- Ca Mau city belongs to Ca Mau province.
What is the salary payment time in Vietnam?
According to Article 97 of the Labor Code 2019, the regulation stipulates as follows:
Salary payment time
1. Workers paid by the hour, day, or week shall be paid after the working hour, day, or week, or it can be aggregated as agreed between both parties, but not more than 15 days of aggregated wages must be paid once.
2. Workers paid monthly shall be paid once a month or semi-monthly. The payment time is agreed upon by both parties and must be fixed at a periodic time.
3. Workers paid by product or contract shall be paid as agreed between both parties; if the work must be done over several months, the worker shall be paid an advance each month proportional to the amount of work done during that month.
4. In case of force majeure, if the employer has sought all means of remedy but still cannot pay the wage on time, the delay must not exceed 30 days; if the delay is 15 days or more, the employer must compensate the worker with an amount at least equal to the interest of the delayed payment calculated at the interest rate of a 1-month term deposit of the bank where the employer opens the wage payment account for the worker, announced at the payment time.
Thus, according to the above regulation, the wage payment period for workers, depending on whether they are paid by the hour, day, week, or by month, or by product or contract, is determined as follows:
- For workers paid by the hour, day, week: To be paid after the working hour, day, or week, or aggregated as agreed by both parties, but not more than 15 days of aggregated wages must be paid once.- For workers paid monthly: To be paid once a month or semi-monthly. The payment time is agreed upon by both parties and must be fixed at a periodic time.
For workers paid by product or contract: To be paid as agreed by both parties; if the work must be done over several months, monthly advance payment proportional to the amount of work done during that month shall be made.
Additionally, in case of force majeure, if the employer has sought all means of remedy but still cannot pay the wage on time, the delay must not exceed 30 days;
If the wage is delayed for 15 days or more, the employer must compensate the worker with an amount at least equal to the interest of the delayed payment calculated at the interest rate of a 1-month term deposit of the bank where the employer opens the wage payment account for the worker, announced at the payment time.
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