What are region-based statutory minimum wages in 2024 in Vietnam?

What are region-based statutory minimum wages in 2024 in Vietnam?

Currently, there is no new document regulating changes to the region-based statutory minimum wage. However, on December 20, 2023, the National Wage Council agreed and closed the proposal to increase the region-based statutory minimum wage from July 1, 2024 at 6% to submit to the Government for consideration and decision.

Therefore, from the beginning of 2024 until before July 1, 2024, the region-based statutory minimum wage will apply according to the following regulations:

Pursuant to the provisions of Article 3 of Decree 38/2022/ND-CP stipulating the minimum salary as follows:

Thus, the current region-based statutory minimum wage from the beginning of 2024 until before July 1, 2024 in Vietnam is specifically as follows:

Region 1 : Statutory minimum wage per month is 4,680,000, Statutory minimum wages per hour is 22,500

Region 2 : Statutory minimum wage per month is 4,160,000, Statutory minimum wages per hour is 20,000

Region 3 : Statutory minimum wage per month is 3,640,000, Statutory minimum wages per hour is 17,500

Region 4 : Statutory minimum wage per month is 3,250,000, Statutory minimum wages per hour is 15,600.

Note : The monthly minimum wage calculation unit is VND/month, the hourly minimum wage calculation unit is VND/hour.

If the proposal is approved, the region-based statutory minimum wage will increase as follows:

Region 1 : increased from 4.68 million VND/month to 4.96 million VND/month (an additional 280,000 VND);

Region 2: increased from 4.16 million VND/month to 4.41 million VND/month (increased by 250,000 VND);

Region 3 : increased from 3.64 million VND/month to 3.86 million VND/month (increased by 220,000 VND);

Region 4: increased from 3.25 million VND/month to 3.45 million VND/month (increased by 200,000 VND).

Minimum monthly salary is the lowest salary as a basis for negotiation and payment to employees applying the monthly salary method, ensuring the salary according to the job or title of the employee who works fully. Normal working hours during the month and completion of agreed labor or work norms must not be lower than the monthly minimum wage in Vietnam.

The hourly minimum wage is the lowest wage as a basis for agreement and payment to employees applying the hourly wage method, ensuring a salary according to the job or title of the employee working in the workplace and complete the agreed labor or work quota which must not be lower than the hourly minimum wage in Vietnam.

What are region-based statutory minimum wages in 2024 in Vietnam? (Image from the Internet)

Can businesses in difficulty be paid wages lower than the region-based statutory minimum wage in Vietnam?

Pursuant to Article 90 of the 2019 Labor Code, regulations on wages are as follows:

Salary

1. A salary is an amount the employer pays the employee under an agreement for a work performed by the latter. Salary equals (=) base salary plus (+) allowances and other additional amounts.

2. The base salary must not fall below the statutory minimum wages.

3. Employers shall pay salaries fairly without discrimination against genders of employees who perform equal works.

Thus, according to the law in Vietnam, the salary paid according to job or title cannot be lower than the minimum salary. Therefore, even if businesses face difficulties, they must ensure that wages paid to workers are not below the region-based statutory minimum wage.

Can monthly salary paid for health insurance be lower than the minimum wage in Vietnam?

Pursuant to item d Subsection 3.2 Section 3 Official Dispatch 1952/BHXH-TST 2023 stipulating monthly salary as the basis for payment:

Monthly salary as a basis for payment:

...

3.2. Salary decided by the unit:

d) The monthly salary paid for compulsory social insurance, health insurance, and unemployment insurance is not lower than the region-based statutory minimum wage at the time of payment for employees doing the simplest job or title under normal working conditions.

- Minimum wage is the lowest wage paid to workers doing the simplest jobs under normal working conditions to ensure a minimum living standard for workers and their families, consistent with the conditions on social economic development.

- Employers operating in any region shall apply the minimum wage prescribed for that area; If a unit or branch operates in areas with different minimum wages, whichever area the unit or branch operates in will apply the minimum wage prescribed for that area; Units operating in industrial parks and export processing zones located in areas with different minimum wage rates shall apply according to the area with the highest minimum wage.

- For employees who are receiving salary under other forms of payment (weekly, daily, product-based, piece salary), the salary being paid under these forms of payment cannot be converted to monthly or hourly basis lower than the monthly minimum wage or hourly minimum wage prescribed by the Government.

- Review the agreements in the labor contract, collective labor agreement and the employer's rules and regulations to make appropriate adjustments and supplements; Do not eliminate or reduce salary regimes when employees work overtime, work overtime at night, compensation in kind and other regimes according to the provisions of labor law.

- For agreed and committed contents in labor contracts, labor agreements or other legal agreements that are more beneficial to employees than those specified in Decree 38/2022/ND-CP, continue is implemented, including the salary regime paid to employees doing jobs or titles who have undergone vocational training or vocational training that is at least 7% higher than the minimum wage, which will continue to be implemented, except in cases where In case the two parties agree otherwise according to the provisions of law.

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According to the above regulations in Vietnam, the monthly salary paid for health insurance is not lower than the regional minimum salary at the time of payment for employees doing the simplest job or title under normal working conditions.

Best regards!