Issuance of Decree 74 on the regional minimum wage for employees working under labor contracts in Vietnam

Issuance of Decree 74 on the regional minimum wage for employees working under labor contracts in Vietnam

On June 30, 2024, the Government issued Decree 74/2024/ND-CP, which regulates the monthly minimum wage and the hourly minimum wage applicable to employees working under labor contracts.

Based on Article 3 of Decree 74/2024/ND-CP, the minimum wage rates for employees working for employers are determined by region as follows:

Note: The application of regional areas is determined based on the location of the employer's activities as follows:

- If the employer operates in a specific region, the minimum wage prescribed for that region applies.

- If the employer has units or branches operating in different regions with different minimum wage levels, the unit or branch operating in a specific region will apply the minimum wage prescribed for that region.

- If the employer operates in industrial zones or export processing zones located in different regions with different minimum wage levels, the highest minimum wage level in the respective region will apply.

- If the employer operates in an area that undergoes a change in name or administrative division, the temporary application of the minimum wage prescribed for the previous name or administrative unit will continue until the government issues new regulations.

- If the employer operates in a newly established area that is formed from one or multiple areas with different minimum wage levels, the highest minimum wage level according to the corresponding region will apply.

- If the employer operates in a newly established city under a province, formed from one or multiple areas in Region 4, the minimum wage prescribed for the remaining area of the province will apply.

Issuance of Decree 74 on the regional minimum wage for employees working under labor contracts in Vietnam - image from internet

Which subjects does the regional minimum wage apply to from July 1, 2024 in Vietnam?

According to Article 2 of Decree 74/2024/ND-CP, the minimum monthly wage and minimum hourly wage apply to the following subjects:

- Employees working under labor contracts as regulated by the 2019 Labor Code.

- Employers as regulated by the 2019 Labor Code, including:

+ Enterprises as regulated by the Enterprise Law.

+ Agencies, organizations, cooperatives, households, individuals who hire or utilize labor under agreements; in the case of individual employers, they must have full civil capacity.

- Other relevant agencies, organizations, and individuals involved in implementing the minimum wage.

Which areas are included in Region 2 for the application of the regional minimum wage from July 1, 2024 in Vietnam?

According to Appendix 2 issued with Decree 74/2024/ND-CP, the areas included in Region 2 for the application of the regional minimum wage from July 1, 2024 are as follows:

- The remaining districts of Hanoi city (excluding districts in Region 1).

- Lao Cai city in Lao Cai province.

- Thai Nguyen city, Song Cong city, and Pho Yen city in Thai Nguyen province.

- Hoa Binh city and Luong Son district in Hoa Binh province.

- Viet Tri city in Phu Tho province.

- Bac Giang city, Viet Yen town, and Yen Dung district in Bac Giang province.

- Vinh Yen city, Phuc Yen city, Binh Xuyen district, and Yen Lac district in Vinh Phuc province.

- Bac Ninh city, Tu Son city, Thuan Thanh town, Que Vo town, Tien Du district, Yen Phong district, Gia Binh district, and Luong Tai district in Bac Ninh province.

- Hung Yen city, My Hao town, Van Lam district, Van Giang district, and Yen My district in Hung Yen province.
Chi Linh city, Kinh Mon town, Cẩm Giang district, Binh Giang district, Tu Ky district, Gia Loc district, Nam Sach district, and Kim Thanh district in Hai Duong province.

- Cam Pha city in Quang Ninh province.

- The remaining districts of Hai Phong city.

- Thai Binh city in Thai Binh province.

- Nam Dinh city and My Loc district in Nam Dinh province.

- Ninh Binh city in Ninh Binh province.

- Thanh Hoa city, Sam Son city, Bim Son town, and Nghi Son town in Thanh Hoa province.
Vinh city, Cua Lo town, Nghi Loc district, and Hung Nguyen district in Nghe An province.

- Dong Hoi city in Quang Binh province.

- Hue city in Thua Thien Hue province.

- Hoi An city, Tam Ky city, and the districts of Da Nang city.

- Nha Trang city, Cam Ranh city, and Ninh Hoa town in Khanh Hoa province.

- Da Lat city and Bao Loc city in Lam Dong province.

- Phan Thiet city in Binh Thuan province.

- Can Gio district in Ho Chi Minh City.

- Tay Ninh city, Trang Bang town, Hoa Thanh town, and Go Dau district in Tay Ninh province.

- Dinh Quan district, Tan Phu district, and Cam My district in Dong Nai province.

- Dong Xoai city, Chon Thanh town, and Dong Phu district in Binh Phuoc province.

- Ba Ria city in Ba Ria - Vung Tau province.

- Thu Thua district, Can Duoc district, and Kien Tuong town in Long An province.

- My Tho city and Chau Thanh district in Tien Giang province.

- Ben Tre city and Chau Thanh district in Ben Tre province.

- Vinh Long city and Binh Minh town in Vinh Long province.

- The districts of Can Tho city.

- Rach Gia city, Ha Tien city, and Phu Quoc city in Kien Giang province.

- Long Xuyen city and Chau Doc city in An Giang province.

- Tra Vinh city in Tra Vinh province.

- Soc Trang city in Soc Trang province.

- Bac Lieu city in Bac Lieu province.

- Ca Mau city in Ca Mau province.