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The new regional minimum wage for contract workers, applied from July 1, 2024, will increase by an average of VND 200,000 - 280,000 compared to the current wage.
The Government has just issued Decree No. 74/2024 regulating the minimum wage for employees working under labor contracts, replacing Decree No. 38/2022, effective from July 1, 2024.
According to Decree 74, the minimum wage by region from July 1, 2024 will increase by an average of VND 200,000 to VND 280,000 compared to the current minimum wage in Decree No. 38/20.
The monthly minimum wage in the 4 regions is specifically regulated for each region.
Region I: Increase by 280,000 VND, from 4,680,000 VND/month to 4,960,000 VND/month.
Region II: Increase by 250,000 VND, from 4,160,000 VND/month to 4,410,000 VND/month.
Region III: Increase 220,000 VND from 3,640,000 VND/month to 3,860 VND/month.
Region IV: Increase 200,000 VND from 3,250,000 VND/month to 3,450,000 VND/month.
The minimum hourly wage in Region I increased from VND22,500/hour to VND23,800/hour. Region II from VND20,000/hour to VND21,200/hour. Region III from VND17,500/hour to VND18,600/hour. Region IV from VND15,600/hour to VND16,600/hour.
The application of the regional area is determined according to the employer's place of operation as follows:
Employers operating in a region shall apply the minimum wage prescribed for that region.
If an employer has units or branches operating in areas with different minimum wages, the unit or branch operating in the area shall apply the minimum wage prescribed for that area.
Employers operating in industrial parks and export processing zones located in areas with different minimum wages shall apply the area with the highest minimum wage.
Employers operating in areas with a change of name or administrative division shall temporarily apply the minimum wage prescribed for the area before the change of name or administrative division until the Government has new regulations.
Employers operating in a newly established area from one or more areas with different minimum wages shall apply the minimum wage according to the area with the highest minimum wage.
Employers operating in a provincial city newly established from one or more localities in region IV shall apply the minimum wage prescribed for the remaining provincial cities in Clause 3 of the Appendix to this Decree.
Decree No. 74 stipulates that the monthly minimum wage is the lowest wage level used as a basis for negotiating and paying wages to employees applying the monthly salary payment method, ensuring that the wage level according to the job or position of employees who work enough normal working hours in the month and complete the agreed labor norms or work must not be lower than the monthly minimum wage.
The minimum hourly wage is the lowest wage used as a basis for negotiation and payment of wages to employees applying the hourly wage payment method, ensuring that the wage according to the job or position of the employee working in one hour and completing the agreed labor norm or work must not be lower than the minimum hourly wage.
For employees who are paid weekly, daily, piecework or piecework, the salary of these forms of payment, if converted to monthly or hourly, must not be lower than the minimum monthly wage or minimum hourly wage.
Salary converted monthly or hourly based on normal working hours chosen by the employer in accordance with labor law.
VN (according to Vietnamnet)