Many workers could get two pay raises from July 1

Commenting on the draft, the Ministry of Home Affairs agreed with the Ministry of Labor, War Invalids and Social Affairs (MOLISA) that the minimum wage increase in 2024 will be on July 1, coinciding with the time of public sector salary reform.

The Ministry of Home Affairs also requested the Ministry of Labor, Invalids and Social Affairs to review the adjustment of the minimum wage to ensure: The minimum wage is adjusted based on the minimum living standards of workers and their families; the correlation between the minimum wage and the market wage; the consumer price index, economic growth rate; the relationship between labor supply and demand; employment and unemployment; labor productivity; and the ability of enterprises to pay.

Previously, in the draft Decree on minimum wages for employees working under labor contracts that is soliciting opinions, the drafting agency proposed a monthly minimum wage and an hourly minimum wage for employees working for employers by region.

Specifically, the regional minimum wage proposed by the Ministry of Labor, Invalids and Social Affairs is as follows:

Region I increased from 4.68 million VND/month to 4.96 million VND/month (increase of 280,000 VND).

Region II increased from 4.16 million VND/month to 4.41 million VND/month (increase of 250,000 VND).

Region III increased from 3.64 million VND/month to 3.86 million VND/month (increase of 220,000 VND).

Many people get their minimum wage increased at least twice.

Along with the proposal to increase the regional minimum wage, the draft decree also outlines directions for adjusting some areas receiving the regional minimum wage. Specifically:

Moving from region II with an expected minimum wage of 4.41 million VND/month to region I with an expected minimum wage of 4.96 million VND/month in the following localities: Quang Yen town, Dong Trieu town, Uong Bi city, Mong Cai city in Quang Ninh province.

Moving from region III with an expected minimum wage of 3.86 million VND/month to region II with an expected minimum wage of 4.41 million VND/month in the following localities: Thai Binh City (Thai Binh); Thanh Hoa City, Sam Son City, Nghi Son Town, Bim Son Town (Thanh Hoa); Ninh Hoa Town (Khanh Hoa); Soc Trang City (Soc Trang).

Moving from region IV with an estimated minimum monthly wage of 3.45 million VND/month to region III with an estimated minimum monthly wage of 3.86 million VND/month in the following localities: Trieu Son district, Tho Xuan district, Yen Dinh district, Vinh Loc district, Thieu Hoa district, Ha Trung district, Hau Loc district, Nga Son district, Hoang Hoa district, Nong Cong district (Thanh Hoa); Thai Thuy district, Tien Hai district (Thai Binh); Ninh Phuoc district (Ninh Thuan).

The regional adjustment of the above localities aims to create a reasonable balance in labor prices between neighboring areas.

In addition, the above localities have more developed labor markets, formed industrial zones and clusters, and significantly improved infrastructure conditions, adjacent to other localities with higher minimum wages.

Thus, many areas are adjusted from lower minimum wages to higher minimum wages.

Workers in areas receiving lower regional minimum wages will have their minimum wages increased in line with the increase in the higher regional minimum wages. This group will have a salary increase that is 200,000-280,000 VND/month higher than the average.

Specifically, the area where the salary adjustment is applied from region II to region I, employees will receive an increase of 800,000 VND/month; from region III to region II, the increase is 770,000 VND/month; from region IV to region III, the increase is 610,000 VND/month. This increase is about 3 times higher than the general salary increase.