Official increase in region-based statutory minimum wages in Vietnam as of July 01, 2024

Official increase in region-based statutory minimum wages in Vietnam as of July 01, 2024

The region-based statutory minimum wagesis stipulated as follows:

• Regulations on monthly minimum wage and hourly minimum wage for employees working for employers according to regions are as follows:

• Region I: Monthly minimum wage: 4,960,000 VND/month; hourly minimum wage: 23,800 VND/hour.

(Previously, under Decree 38/2022/ND-CP, Region I had a monthly minimum wage: 4,680,000 VND/month; hourly minimum wage: 22,500 VND/hour.)

• Region II: Monthly minimum wage: 4,410,000 VND/month; hourly minimum wage: 21,200 VND/hour.

(Previously, Region II had a monthly minimum wage: 4,160,000 VND/month; hourly minimum wage: 20,000 VND/hour.)

• Region III: Monthly minimum wage: 3,860,000 VND/month; hourly minimum wage: 18,600 VND/hour.

(Previously, Region III had a monthly minimum wage: 3,640,000 VND/month; hourly minimum wage: 17,500 VND/hour.)

• Region IV: Monthly minimum wage: 3,450,000 VND/month; hourly minimum wage: 16,600 VND/hour.

(Previously, Region IV had a monthly minimum wage: 3,250,000 VND/month; hourly minimum wage: 15,600 VND/hour.)

The application of regional areas is determined according to the employer's place of operation as follows:

• Employers operating in areas belonging to which region will apply the minimum wage regulations for that area.

• Employers with units or branches operating in areas with different minimum wages will apply the minimum wage regulations for the area where the unit or branch operates.

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

• Employers operating in areas with changes in name or administrative division will temporarily apply the minimum wage regulations for the area before the name change or administrative division until the Hanoi issues new regulations.

• Employers operating in newly established areas from one or multiple areas with different minimum wages will apply the minimum wage according to the area with the highest minimum wage.

• Employers operating in areas that are newly established cities directly under provinces from one or multiple areas of Region IV will apply the minimum wage regulations for cities directly under provinces remaining in Clause 3 of the Appendix attached to Decree 74/2024/ND-CP

More details can be found in Decree 74/2024/ND-CP which comes into force from July 01, 2024.

Decree 38/2022/ND-CP on prescribing statutory minimum wages paid to employees working under employment contracts in Vietnam will cease to be effective from July 01, 2024

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