What is the region-based statutory minimum wages per hour paid to employees in Ho Chi Minh City?

What is the region-based statutory minimum wages per hour paid to employees working in district 1 in Ho Chi Minh City?

Pursuant to Clause 1 Article 3 of the Decree 38/2022/NĐ-CP, the region-based statutory minimum wages per month and per hour paid to employees are provided for as follows:

Region	Statutory minimum wages per month  (Unit: VND/month)	Statutory minimum wages per hour  (Unit: VND/hour)
Region I	4.680.000	22.500
Region II	4.160.000	20.000
Region III	3.640.000	17.500
Region IV	3.250.000	15.600

Pursuant to Subsection 1 of the Appendix issued together with the Decree 38/2022/NĐ-CP stipulating the list of areas applying the minimum wage from July 1, 2022 as follows:

1. Region I, including the following areas:

- The districts of Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, Chuong My and Son Tay town of Hanoi city;

- Ha Long city in Quang Ninh province;

- The districts of Thuy Nguyen, An Duong, An Lao, Vinh Bao, Tien Lang, Cat Hai, Kien Thuy in Hai Phong city;

- Districts, Thu Duc city and Cu Chi, Hoc Mon, Binh Chanh, Nha Be districts of Ho Chi Minh city;

- The cities of Bien Hoa, Long Khanh and the districts of Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom and Xuan Loc in Dong Nai province;

- The cities of Thu Dau Mot, Thuan An and Di An; the towns of Ben Cat, Tan Uyen and the districts of Bau Bang, Bac Tan Uyen, Dau Tieng and Phu Giao in Binh Duong province;

- Vung Tau city, Phu My town in Ba Ria - Vung Tau province.

As regulations above, your company is located in HCMC, which is region I, so your the region-based statutory minimum wages per hour shall be 22.500 VND/hour. R company is against the law when paying you with only 22.000VND/hour.

What are the fines imposed on employers for paying employees lower than the region-based statutory minimum wages in Vietnam?

Pursuant to Clause 3 and 5, Article 17 of the Decree 12/2022/NĐ-CP stipulating violations against regulations on salaries in Vietnam as follows:

3. The following fines shall be imposed upon an employer for paying their employees salaries which are lower than the statutory minimum wages announced by the Government:

a) A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed if the violation involves 01 - 10 employees;

b) A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed if the violation involves 11 - 50 employees;

c) A fine ranging from VND 50.000.000 to VND 75.000.000 shall be imposed if the violation involves 51 employees or more.

...

5. Remedial measures

a) The employer that commits the violation specified in Clause 2 or Clause 3 of this Article is compelled to pay full salaries plus interests on late payments or insufficient payments of salary, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees.

b) The employer that commits the violation specified in Clause 4 of this Article is compelled to pay full amounts of money equal to total sums of compulsory social insurance, compulsory health insurance, and unemployment insurance premiums payable plus interests on such amounts, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees.

Pursuant to Clause 1 Article 6 of the Decree 12/2022/NĐ-CP stipulating as follows:

1. The fines for administrative violations prescribed in Chapter II, Chapter III and Chapter IV of this Decree shall be imposed upon violating individuals, except the fines in Clauses 1, 2, 3, 5 Article 7, Clauses 3, 4, 6 Article 13, Clause 2 Article 25, Clause 1 Article 26, Clauses 1, 5, 6, 7 Article 27, Clause 8 Article 39, Clause 5 Article 41, Clauses 1 through 12 Article 42, Clauses 1 through 8 Article 43, Clauses 1 through 6 Article 45, Clause 3 Article 46 of this Decree. The fine imposed upon an organization is twice as much as that imposed upon an individual for committing the same administrative violation.

As regulations above, a fine up to 75.000.000 VND shall be imposed on employers for paying employees lower than the region-based statutory minimum wages in Vietnam. In addition, the employers must pay full salaries to employees.

Best regards!