Regional minimum wage to increase starting in July

The new regulation will come into effect on July 1. — VNA/VNS Photo

HÀ NỘI — A new decree raising the regional minimum wage for labourers was approved on Sunday by Deputy Prime Minister Phạm Bình Minh.

The new regulation, coded 38/2022/NĐ-CP will come into effect on July 1. 

The 6 per cent increase is equivalent to a rise of VNĐ260,000 (US$11.20) in Region 1, and VNĐ240,000, 210,000, and 180,000 in Regions 2, 3, and 4, respectively.

The document also specifies that the minimum hourly wage will range from VNĐ15,600 to 22,500 ($0.70-1), which also depends on the region.

The geographical classification is determined based on the employer’s place of operation. 

Region 1 covers Hà Nội and HCM City’s urban areas; Region 2 encompasses Hà Nội and HCM City’s rural areas, along with major urban areas in the country like Cần Thơ, Đà Nẵng and Hải Phòng; Region 3 covers provincial cities and the districts of Bắc Ninh, Bắc Giang and Hải Dương provinces; and Region 4 comprises the rest of the country.

The change is applicable to workers and employers under labour contracts in accordance with the Labour Code.

The resolution also defines minimum wage as the lowest amount that can be paid to an employee, which is the basis for negotiation and compensation, in the form of a monthly salary. This amount corresponds to the workload and job title in designated work hours, given that the employee fulfils their tasks as assigned. 

For workers who are paid on a daily or weekly basis, or based on a piece rate, then their salary, when converted to the monthly or hourly rate, must not be lower than the minimum wage. — VNS