Fresh regional minimum wage policy released
VGP - The Government issued Decree 74/2024/ND-CP dated June 30, 2024 providing for regional minimum wage, applicable from July 1, 2024.
From July 1, 2024, he regional minimum wage goes up by 6 percent from VND200,000 to VND280,000 per month - Illustration photo
Accordingly, the regional minimum wage goes up by 6 percent from VND200,000 to VND280,000 per month.
Specifically, the regional minimum wage for Regions I, II, III and IV shall respectively rise by VND280,000 (nearly US$11.5), VND 250,000, VND220,000, and VND200,000 VND to VND4.96 million, VND4.41 million, VND 3.86 million, and VND 3.45 million.
Meanwhile, a 6 percent increase is also applied to the hourly minimum wage, which would range from VND 16,600 (US$0.65) to VND 23,800 (US$0.93) depending on the region.
The last regional minimum wage increase was introduced in July 2022, targeting to reduce the impacts of the Covid-19 pandemic.
The regional minimum wage is the lowest level and used as the basis for businesses to negotiate and pay wages to laborers. This amount applies to individuals working under the employment contract framework of the Labor Code; working within enterprises; cooperatives, farms, households, individuals, and other Vietnamese organizations that employ staff under contracts; as well as foreign organizations and individuals in Viet Nam that employ laborers.
Regionally-based monthly minimum wages vary between four different regions based on four separate benchmarks determined by living standards in each area.
Region 1 covers urban Ha Noi and HCM City; Region 2 covers rural Ha Noi and HCM City along with Can Tho, Da Nang and Hai Phong cities; Region 3 applies to cities and districts of Bac Ninh, Bac Giang, Hai Duong, and Vinh Phuc provinces; and Region 4 encompasses the remaining localities./.
