Statutory minimum wages per month of employees in Vietnam under Decree 74/2024/ND-CP

Statutory minimum wages per month of employees in Vietnam under Decree 74/2024/ND-CP (Internet image)

On June 30, 2024, Hanoi issued Decree 74/2024/ND-CP stipulating the statutory minimum wages paid to employees working under employment contracts in Vietnam

From July 1, 2024, there will be changes to statutory minimum wages paid to employees working under employment contracts in Vietnam. 

Statutory minimum wages per month of employees in Vietnam under Decree 74/2024/ND-CP

The statutory minimum wages per month is the lowest wage used as a basis for negotiating and paying wages to employees paid by month, ensuring that the wage for the job or title of employees who work full normal working hours in the month and complete the agreed labor standard or work is not lower than the statutory minimum wages per month.

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

• Region I: 4,960,000 VND/hour;

• Region II: 4,410,000 VND/hour;

• Region III: 3,860,000 VND/hour;

• Region IV: 3,450,000 VND/hour;

(The list of regions I, II, III, and IV is stipulated in the Appendix attached to Decree 74/2024/ND-CP)

The application of regional areas to calculate the statutory minimum wages per month is determined according to the place of operation of the employer as follows:

• Employers operating in an area belonging to a specific region apply the minimum wage for that region.

• Employers who have units or branches operating in areas with different minimum wages apply the minimum wage for the respective areas where the units or branches operate.

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

• Employers operating in areas with changing names or administrative division temporarily apply the minimum wage of the area before the name change or administrative division until the government has new regulations.

• Employers operating in newly established areas from one or more different minimum wage areas apply the highest minimum wage.

• Employers operating in newly established city-level areas from one or more areas under region IV apply the minimum wage for the remaining city-level areas stipulated in item 3 of the Appendix attached to Decree 74/2024/ND-CP.

Note: When implementing the minimum wage stipulated in Decree 74/2024/ND-CP, employers are responsible for reviewing the wage regimes in the labor contracts agreed with employees, the collective labor agreement, and regulations of the employer to make necessary adjustments.

For agreed or committed wage content more beneficial to employees (such as wage regimes for employees doing jobs or holding titles requiring training 7% higher than the minimum wage and wage regimes for employees doing jobs with heavy, hazardous, or dangerous conditions at least 5% higher; jobs with especially heavy, hazardous, or dangerous conditions at least 7% higher than wages for jobs with equivalent complexity under normal conditions), those will continue to be executed unless otherwise agreed upon by the parties.

Employers are not allowed to abolish or reduce wage regimes when employees work overtime, at night, or the regimes for feeding allowances and other regimes stipulated by labor laws.

(Article 3, Clause 1 of Article 4, Clause 3 of Article 5 Decree 74/2024/ND-CP)

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