Early completion of decree regulating regional minimum wage increase in May 2024

On that basis, the Government has assigned the Ministry of Labor, War Invalids and Social Affairs to complete the decree regulating this minimum wage in May this year to promptly apply it to public sector wage reform.

In Resolution No. 01/NQ-CP of the Government on the main tasks and solutions to implement the Socio-Economic Development Plan and State Budget Estimates for 2024, the Government assigned the Ministry of Labor, War Invalids and Social Affairs to complete the Decree regulating the minimum wage for employees working under labor contracts in May 2024.

On December 20, 2023, the National Wage Council met and agreed to recommend to the Government the minimum wage plan to be applied from July 1, 2024, with an average increase of 6% (equivalent to an increase from VND 200,000 to VND 280,000).

A representative of the Ministry of Labor, War Invalids and Social Affairs said that this agency will develop and submit to the Government a Decree regulating the minimum wage for employees working under labor contracts.

Thus, the regional minimum wage will increase from July 1, 2024, at the same time as public sector wage reform.

With a 6% increase, the monthly minimum wage can be applied from July 1, 2024, specifically as follows: Region I increases from VND 4.68 million/month to VND 4.96 million/month (an increase of VND 280,000); Region II increases from VND 4.16 million/month to VND 4.41 million/month (an increase of VND 250,000); Region III increases from VND 3.64 million/month to VND 3.86 million/month (an increase of VND 220,000); Region IV increases from VND 3.25 million/month to VND 3.45 million/month (an increase of VND 200,000).

With the regional minimum hourly wage, if increased by 6% from July 1, 2024, the specific levels in the regions are as follows: Region I increases from 22.5 thousand VND/hour to 23.8 thousand VND/hour; Region II increases from 20 thousand VND/hour to 21.2 thousand VND/hour; Region III increases from 17.5 thousand VND/hour to 18.6 thousand VND/hour; Region IV increases from 15.6 thousand VND/hour to 16.6 thousand VND/hour.

Recently, the Ministry of Labor, War Invalids and Social Affairs has just issued a document responding to voters' petitions related to the wage policy for employees in enterprises. Accordingly, voters recommended that the Government direct relevant ministries and branches to synchronize solutions to stabilize market prices when implementing wage increases, so that the regional minimum wage increase policy is truly effective.

Responding to this content, the Ministry of Labor, War Invalids and Social Affairs said that according to the provisions of the Labor Code, wage policy in the enterprise sector is decided by employees and employers, based on negotiation and compromise between the two parties.

The State only regulates the minimum wage as the lowest floor to protect workers with low technical expertise and simple jobs from being paid too low.

The minimum wage is decided and announced by the Government based on the recommendations of the National Wage Council, and is adjusted based on factors such as: Minimum living standards of workers and their families; correlation between minimum wage and market wage; consumer price index; economic growth rate; labor supply and demand; employment and unemployment; labor productivity; and business solvency.