To review and evaluate the implementation of the monthly and hourly minimum wage in Vietnam

To review and evaluate the implementation of the monthly and hourly minimum wage in Vietnam (Internet image)

The Ministry of Labour, Invalids, and Social Affairs of Vietnam issued Official Dispatch 470/LDTBXH-QHLDTL dated February 21, 2023, on reviewing and evaluating the implementation of the minimum wage.

The Ministry of Labour, Invalids, and Social Affairs requested the Chairman of the provincial People's Committee to direct the Department of Labor, War Invalids, and Social Affairs to coordinate with relevant departments and agencies to implement the following contents:

To review and evaluate the implementation of the monthly and hourly minimum wage in Vietnam

Specifically, the organization grasps the implementation of the minimum wage in accordance with the provisions of Decree 38/2022/ND-CP stipulating the minimum wage for employees working under labor contracts from July 1, 2022, in which:

* For monthly minimum salary

Proposing to review and evaluate the implementation of the minimum wage; including the implementation of regulations to continue to implement the contents agreed upon and committed in the labor contract, collective labor agreement or other legal agreements that are more favorable to employees as prescribed in Clause 3, Article 5 of Decree 38/2022/ND-CP (especially an agreement on payment of wages to employees who perform jobs requiring vocational training or vocational training at least 7% higher than the minimum wage);

3. The employer is responsible for organizing the review of the agreements in the labor contract, the collective labor agreement, and the employer's regulations to adjust, supplement accordingly; it must not remove or reduce salary regimes when employees work overtime, work at night, receive compensation in kind, or other regimes according to the provisions of labor law. With regard to the agreed and committed contents in the labor contract, labor agreement, or other lawful agreements that are more favorable to the employee than those specified in this Decree, the implementation shall continue. unless otherwise agreed by the parties.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People's Committees of the provinces and centrally-run cities, and the employers are responsible for the implementation of this Decree.

In addition, it also assesses difficulties and obstacles when implementing the minimum wage and paying employees.

* For the hourly minimum wage

The Ministry of Labour, Invalids, and Social Affairs proposed to clearly evaluate the implementation and application of enterprises after the Government first issued the minimum hourly wage; survey and collect statistics on groups of positions, job titles, fields/industries that pay hourly wages, and the popular hourly wages of the above jobs; and assess the advantages, disadvantages, and impacts of enterprises and employees after the Government promulgates the minimum hourly wage.

To review and evaluate the current partition adjustment in Vietnam

In addition to reviewing and evaluating the adjustment of minimum wages by month and by hour, the Ministry of Labour, Invalids and Social Affairs also asked localities to evaluate the adjustment of zoning to apply the current minimum wages.

In case there is a proposal to adjust the zoning, the Department of Labor, War Invalids, and Social Affairs shall coordinate with the Management Board of export processing zones and industrial zones in writing to discuss in writing with the provincial Confederation of Labor, the branch of the Vietnam Chamber of Commerce and Industry at the provincial level, professional associations, investors, and businesses in the area, report to the People's Committees of the provinces and centrally-run cities for comments, and send them to the Ministry.

The Ministry of Labour, Invalids, and Social Affairs only recognizes the proposals of the People's Committees of the provinces and centrally-run cities after following the above process and reporting them to the Government.

More details can be found in Vietnam's Official Dispatch 470/LDTBXH-QHLDTL dated 21/02/2023.

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