Is it expected that the statutory minimum wages will increase from 200,000 VND to 280,000 VND per month?

Is it expected that the statutory minimum wages will increase from 200,000 VND to 280,000 VND per month?

In the Draft Decree regulating the statutory minimum wage for employees working under labor contracts, the Ministry of Labor - Invalids and Social Affairs proposes to adjust the statutory minimum wage by 6% compared to the current level to be applied from July 1, 2024.

Specifically, regarding the statutory minimum wage, the Ministry of Labor - Invalids and Social Affairs proposes to stipulate the minimum monthly wages for 4 regions: region I is 4,960,000 VND/month, region II is 4,410,000 VND/month, region III is 3,860,000 VND/month, region IV is 3,450,000 VND/month.

The statutory minimum wage per hour increases by 6%, ranging from 16,600 to 23,800 VND. Specifically, region 1 increases to 23,800 VND; region 2 increases to 21,200 VND; region 3 increases to 18,600 VND; region 4 increases to 16,600 VND.

According to the Ministry of Labor - Invalids and Social Affairs, the above-mentioned statutory minimum wage increases from 200,000 VND - 280,000 VND (equivalent to an average rate of 6%) compared to the current statutory minimum wage.

The adjustment of the statutory minimum wage mentioned above is about 2% higher than the minimum living standard of employees until the end of 2024 to improve the situation for employees; it is expected to basically ensure the minimum living standard in 2025 (taking into account a portion of the CPI of 2025 into the minimum living standard so that employees can benefit from it from mid-2024).

This adjustment is aimed at sharing and harmonizing the interests of employees and businesses, paying attention to improving the living standards of employees, as well as ensuring the maintenance, recovery, and development of business production. 100% of the members of the National Wage Council agree and recommend to the Government to adjust according to this level.

Therefore, if there are no changes, the statutory minimum wage is expected to increase from 200,000 VND - 280,000 VND (equivalent to an average rate of 6%) compared to the current statutory minimum wage.

Is it expected that the statutory minimum wages will increase from 200,000 VND to 280,000 VND per month? (Image from the Internet)

Which regions are regions 1, 2, 3, 4 when applying the statutory minimum wage level in Vietnam?

Decree 38/2022/ND-CP stipulates the regions applying the statutory minimum wage as follows:

1. Region I includes the following subregions:

- 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;

- Ha Long City of Quang Ninh Province;

- Urban/suburban districts of Hai Phong City, including: Thuy Nguyen, An Duong, An Lao, Vinh Bao, Tien Lang, Cat Hai and Kien Thuy;

- Thu Duc City and other urban/suburban districts of Ho Chi Minh City, including: Cu Chi, Hoc Mon, Binh Chanh and Nha Be;

- Bien Hoa City, Long Khanh City and other suburban districts of Dong Nai Province, including: Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom and Xuan Loc;

- Thu Dau Mot City, Thuan An City, Di An City, Ben Cat Town, Tan Uyen Town, and other suburban districts of Binh Duong Province, including: Bau Bang, Bac Tan Uyen, Dau Tieng and Phu Giao;

- Vung Tau City and Phu My Town of Ba Ria – Vung Tau Province.

2. Region II includes the following subregions:

- Remaining suburban districts of Hanoi City;

- Remaining suburban districts of Hai Phong City;

- Hai Duong City of Hai Duong Province;

- Hung Yen City, My Hao Town and other suburban districts of Hung Yen Province, including: Van Lam, Van Giang and Yen My;

- Vinh Yen City, Phuc Yen City, and two suburban districts of Vinh Phuc Province, including Binh Xuyen and Yen Lac;

- Bac Ninh City, Tu Son City and other suburban districts of Bac Ninh Province, including: Que Vo, Tien Du, Yen Phong, Thuan Thanh Gia Binh and Luong Tai;

- Cam Pha City, Uong Bi City, Mong Cai City, Quang Yen Town and Dong Trieu Town of Quang Ninh Province;

- Thai Nguyen City, Song Cong City and Pho Yen City of Thai Nguyen Province;

- Hoa Binh City and Luong Son suburban district of Hoa Binh Province;

- Viet Tri City of Phu Tho Province;

- Lao Cai City of Lao Cai Province;

- Nam Dinh City and My Loc suburban district of Nam Dinh Province;

- Ninh Binh City of Ninh Binh Province;

- Vinh City, Cua Lo Town and two suburban districts of Nghe An Province, including Nghi Loc and Hung Yen;

- Dong Hoi City of Quang Binh Province;

- Hue City of Thua Thien Hue Province;

- Hoi An City and Tam Ky City of Quang Nam Province;

- Urban/suburban districts of Da Nang City;

- Nha Trang City and Cam Ranh City of Khanh Hoa Province;

- Da Lat City and Bao Loc City of Lam Dong Province;

- Phan Thiet City of Binh Thuan Province;

- Can Gio suburban district of Ho Chi Minh City;

- Tay Ninh City, Trang Bang Town, Hoa Thanh Town, and Go Dau suburban district of Tay Ninh Province;

- Two suburban districts of Dong Nai Province, including Dinh Quan and Thong Nhat;

- Dong Xoai City and two suburban districts of Binh Phuoc Province, including Chon Thanh and Dong Phu;

- Ba Ria City of Ba Ria – Vung Tau Province;

- Tan An City and suburban districts of Long An Province, including: Duc Hoa, Ben Luc, Thu Thua, Can Duoc and Can Giuoc;

- My Tho City and Chau Thanh suburban district of Tien Giang Province;

- Ben Tre City and Chau Thanh suburban district of Ben Tre Province;

- Vinh Long City and Binh Minh Town of Vinh Long Province;

- Urban districts of Can Tho City;

- Rach Gia City, Ha Tien City and Phu Quoc City of Kien Giang Province;

- Long Xuyen City and Chau Doc City of An Giang Province;

- Tra Vinh City of Tra Vinh Province;

- Bac Lieu City of Bac Lieu Province;

- Ca Mau City of Ca Mau Province.

3. Region III includes the following subregions:

- Remaining provincial cities (except provincial cities of region I and region II);

- Kinh Mon Town and suburban districts of Hai Duong Province, including: Cam Giang, Nam Sach, Kim Thanh, Gia Loc, Binh Giang and Tu Ky;

- Suburban districts of Vinh Phuc Province, including: Vinh Tuong, Tam Dao, Tam Duong, Lap Thach and Song Lo;

- Phu Tho Town and suburban districts of Phu Tho Province, including: Phu Ninh, Lam Thao, Thanh Ba and Tam Nong;

- Suburban districts of Bac Giang Province, including: Viet Yen, Yen Dung, Hiep Hoa, Tan Yen and Lang Giang;

- Suburban districts of Quang Ninh Province, including: Van Don, Hai Ha, Dam Ha and Tien Yen;

- Sa Pa Town and Bao Thang suburban district of Lao Cai Province;

- Remaining suburban districts of Hung Yen Province;

- Suburban districts of Thai Nguyen Province, including: Phu Binh, Phu Luong, Dong Hy and Dai Tu;

- Remaining suburban districts of Nam Dinh Province;

- Duy Tien Town and Kim Bang suburban district of Ha Nam Province;

- Suburban districts of Ninh Binh Province, including: Gia Vien, Yen Khanh and Hoa Lu;

- Bim Son Town, Nghi Son Town and suburban districts of Thanh Hoa Province, including Dong Son and Quang Xuong;

- Thai Hoa Town, Hoang Mai Town, and other suburban districts of Nghe An Province, including: Quynh Luu, Yen Thanh, Dien Chau, Do Luong, Nam Dan, Nghia Dan.

- Ky Anh Town of Ha Tinh Province;

- Huong Thuy Town, Huong Tra Town and suburban districts of Thua Thien Hue Province, including: Phu Loc, Phong Dien, Quang Dien and Phu Vang;

- Dien Ban Town and suburban districts of Quang Nam Province, including: Dai Loc, Duy Xuyen, Nui Thanh, Que Son, Thang Binh and Phu Ninh;

- Two suburban districts of Quang Ngai Province, including: Binh Son and Son Tinh;

- Song Cau Town and Dong Hoa Town of Phu Yen Province;

- Two suburban districts of Ninh Thuan Province, including: Ninh Hai and Thuan Bac;

- Ninh Hoa Town and suburban districts of Khanh Hoa Province, including: Cam Lam, Dien Khanh and Van Ninh;

- Dak Ha suburban district of Kon Tum Province;

- Two suburban districts of Lam Dong Province, including Duc Trong and Di Linh;

- La Gi Town and two suburban districts of Binh Thuan Province, including Ham Thuan Bac and Ham Thuan Nam;

- Phuoc Long Town, Binh Long Town and suburban districts of Binh Phuoc Province, including: Hon Quan, Loc Ninh and Phu Rieng;

- Remaining suburban districts of Tay Ninh Province;

- Remaining suburban districts of Dong Nai Province;

- Suburban districts of Ba Ria - Vung Tau Province, including: Long Dien, Dat Do, Xuyen Moc, Chau Duc and Con Dao; 

- Kien Tuong Town and suburban districts of Long An Province, including: Duc Hue, Chau Thanh, Tan Tru and Thanh Hoa;

- Go Cong Town, Cai Lay Town, and two suburban districts of Tien Giang Province, including Cho Gao and Tan Phuoc;

- Suburban districts of Ben Tre Province, including: Ba Tri, Binh Dai and Mo Cay Nam;

- Two suburban districts of Vinh Long Province, including: Mang Thit and Long Ho;

- Suburban districts of Can Tho City;

- Suburban districts of Kien Giang Province, including: Kien Luong, Kien Hai and Chau Thanh;

- Tan Chau Town and suburban districts of An Giang Province, including: Chau Phu, Chau Thanh and Thoai Son;

- Suburban districts of Hau Giang Province, including Chau Thanh and Chau Thanh A;

- Duyen Hai Town of Tra Vinh Province;

- Gia Rai Town and Hoa Binh suburban district of Bac Lieu Province;

- Vinh Chau Town and Nga Nam Town of Soc Trang Province;

- Suburban districts of Ca Mau Province, including: Nam Can, Cai Nuoc, U Minh and Tran Van Thoi;

- Suburban districts, including Le Thuy, Quang Ninh, Bo Trach and Quang Trach, and Ba Don Town of Quang Binh Province.

4. Region IV includes the remaining subregions./.

What is the region-based statutory minimum wage before July 1, 2024?

Currently, the region-based statutory minimum wage is applied according to Clause 1, Article 3 of Decree 38/2022/ND-CP. Specifically:

Best Regards!