Advisory on the issuance of new regulations on region-based minimum wage in Vietnam in 2024

Review and evaluate the implementation of region-based minimum wage in Vietnam

The Ministry of Labor, War Invalids, and Social Affairs of Vietnam (MOLISA) has issued an official dispatch to the Chairpersons of the People’s Committees of provinces and cities regarding the review and evaluation of the implementation of the region-based minimum wage.

This agency requires localities to organize the monitoring of the implementation of Decree No. 38/2022/ND-CP which stipulates the region-based minimum wage for workers under labor contracts, applicable from July 1, 2022.

To be specific, for the monthly region-based minimum wage, MOLISA requests localities to review and evaluate the implementation of the region-based minimum wage level.

This includes the continuation of agreements and commitments in labor contracts, collective labor agreements, or other lawful agreements that are more favorable to workers as stipulated in Clause 3 Article 5 of Decree No. 38/2022/ND-CP, especially agreements on paying workers doing jobs requiring vocational training or higher training at least 7% higher than the region-based minimum wage level.

Clearly Evaluate the Implementation and Application of the region-based minimum wage per hour

For the region-based minimum wage per hour, MOLISA requests localities to clearly evaluate the implementation and application by enterprises after the Government of Vietnam first introduced the region-based minimum wage per hour.

Localities should conduct surveys and compile statistics on job positions, titles, industries/fields that apply hourly wages, and the prevalent hourly wage levels.

MOLISA requests localities to evaluate the difficulties and obstacles in implementing the region-based minimum wage and paying workers, particularly the advantages, difficulties, and impacts on enterprises and workers after the Government of Vietnam introduced the region-based minimum wage per hour.

Besides reviewing the application of wage levels, MOLISA also requires localities to evaluate the adjustment of regional classifications to apply the current region-based minimum wage levels.

In cases of proposed regional classification adjustments, the Department of Labor, War Invalids, and Social Affairs should coordinate with the management boards of export processing zones and industrial zones to communicate in writing with provincial labor federations, provincial VCCI branches, professional associations, investors, and enterprises within the area, reporting to the provincial/city People's Committee for opinions to be sent to the Ministry.

MOLISA will only record the proposals from the provincial/city People's Committees after following the above process to report to the Government of Vietnam.

Issuing a new Decree on the region-based minimum wage in Vietnam applicable for 2024

Localities also have the responsibility to update the labor, employment, and order situation of enterprises, labor supply-demand in the area in the first quarter of 2023 (especially after the Lunar New Year).

Concurrently, localities need to forecast labor usage demand and the production and business situation of enterprises within the area in the coming time, thereby proposing and recommending adjustments to the region-based minimum wage applicable for 2024 in the forecast context.

Based on local reports, MOLISA will advise the Government of Vietnam to issue a decree stipulating the region-based minimum wage for workers under labor contracts applicable for 2024.

According to the Government of Vietnam's electronic information portal

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