Under Government Decree 38/2022/ND-CP, from July 1, the region-based monthly minimum wage will be increased by 6 percent or between VND 180,000 and VND 260,000.
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| Illustrative image__Photo: Internet |
The 6 percent increase is equivalent to a rise of VND 260,000 (USD 11.2) in region 1, and VND 240,000, VND 210,000, and VND 180,000 in regions 2, 3, and 4, respectively.
The decree specifies that the minimum hourly wage will range from VND 15,600 to VND 22,500 (USD 0.7-1), which also depends on the region.
The application of region-based minimum salary is based on the employer’s place of operation. Region 1 covers Hanoi and Ho Chi Minh City’s urban areas; region 2 encompasses Hanoi and Ho Chi Minh City’s rural areas, along with major urban centers in the country like Can Tho, Da Nang and Hai Phong; region 3 embraces provincial cities and the districts of Bac Ninh, Bac Giang and Hai Duong provinces; and region 4 comprises the rest of the country.
The change is applicable to employees working under labor contracts in accordance with the Labor Code, employers defined in the Law on Enterprises, and related agencies, organizations and individuals.
As defined in the decree, the monthly minimum wage is the lowest amount serving as a basis for negotiation and payment of salary to employees receiving monthly salary, while the hourly minimum wage is the lowest amount payable to workers subject to hourly salary regime.
For workers who are paid on a daily or weekly basis, or who are paid based on piece work or products turned out, their salary, when converted into the monthly or hourly rate, must not be lower than the latter’s minimum level.- (VLLF)
