Increasing minimum wage in Vietnam: Must maintain agreements that benefit workers

According to the current content of Official Dispatch 2086/BLĐTBXH-TLĐLĐVN stipulate the competent authorities to propagate and guide employers and employees to implement in Vietnam when implementing Decree 38/2022/NĐ-CP,the following should be noted:

1. Regarding the implementation mechanism in Vietnam

- For employees who are enjoying salary payment in the form of monthly salary payment: Apply the minimum monthly salary.

- For employees who are receiving salary in the form of hourly payment in Vietnam: Apply the minimum hourly salary.

- For employees who are receiving salary under other forms of payment (weekly, daily, by products, salary): The salary paid under these forms of payment is converted monthly or hourly (according to Point a, Point b, Clause 3, Article 4 of Decree 38/2022/ND-CP) must not be lower than the minimum monthly salary or the minimum hourly salary.

In addition to the above applicable mechanism, the conversion of this monthly or hourly salary is selected by the employer, the conversion result is to check the compliance of the payment to the employee in the form compared to the minimum monthly salary or the minimum hourly salary in Vietnam.

The Decree does not require changes to the form of payment agreed by the employer and the employee.

2. Regarding the responsibility to implement in Vietnam

Clause 3 Article 5 of Decree 38/2022/ND-CP stipulates that employers are responsible for:

- Reviewing agreements in labor contracts, collective labor agreements and regulations of employers to adjust, supplement accordingly, not to remove or reduce salary regimes when employees work overtime, work at night, in-kind compensation regimes and other regimes under the provisions of labor law in Vietnam.

- For the contents agreed, committed in the labor contract, labor agreement or other legal agreements more beneficial to the employee than specified in this Decree, they shall continue to be implemented, unless otherwise agreed by the parties.

According this Decree, the contents implemented in which there is a salary regime paid to employees doing jobs or titles requiring vocational training, vocational training, which is at least 7% higher than the minimum wage, shall continue to be implemented, unless otherwise agreed by the two parties in accordance with the labor law in Vietnam.

See details in Official Dispatch 2086/BLĐTBXH-TLĐLĐĐVN issued on 17/6/2022.

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