Statutory minimum wages per hour for employees under Decree 74/2024/ND-CP

Statutory minimum wages per hour for employees under Decree 74/2024/ND-CP (Internet image)

On June 30, 2024, the Hanoi issued Decree 74/2024/ND-CP stipulating the minimum wage for employees working under labor contracts.

From July 1, 2024, the Statutory minimum wages per hour for employees working under labor contracts will change compared to before.

Statutory minimum wages per hour for employees in Vietnam under Decree 74/2024/ND-CP

The Statutory minimum wages per hour is the lowest wage used as a basis for negotiating and paying employees under hourly wage agreements, ensuring that the hourly wage or job title fulfillments for an employee within one hour, meeting the labor standards or agreed tasks, is not lower than the Statutory minimum wages.

According to Decree 74/2024/ND-CP, the Statutory minimum wages per hou​r for employees in each region from July 1, 2024, is as follows:

• Region I: 23,800 VND/hour;

• Region II: 21,200 VND/hour;

• Region III: 18,600 VND/hour;

• Region IV: 16,600 VND/hour;

The list of localities under regions I, II, III, and IV is defined in the Annex attached to Decree 74/2024/ND-CP.

Note: The application of the regional area is determined by the location of the employer's operation as follows:

• Employers operating in areas under any region should apply the minimum wage stipulated for that locality.

• Employers with units or branches operating in areas with different minimum wages should have their units or branches in those areas apply the respective minimum wage stipulated for those localities.

• Employers operating in industrial or export processing zones located in areas with different minimum wages should apply the minimum wage of the area with the highest wage.

• Employers operating in areas undergoing name changes or administrative unit divisions should temporarily apply the minimum wage stipulated for the area before the name change or administrative unit division until Hanoi has new regulations.

• Employers operating in newly formed areas from one or more areas with different minimum wages should apply the minimum wage according to the area with the highest minimum wage.

• Employers operating in newly established city-affiliated provincial areas from one or more areas in region IV should apply the minimum wage stipulated for remaining city-affiliated provincial areas as stated in clause 3 of the Annex attached to Decree 74/2024/ND-CP.

(Article 3 and Clause 2, Article 4 of Decree 74/2024/ND-CP)

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