Regional minimum wage may increase by 6% from July

Once the proposal is approved. the average minimum regional wage will increase by VND200,000 -280,000 per month.

Specifically, the minimum wage for Regions I, II, III and IV will 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.

In the latest adjustment of the regional wage minimum on July 1, 2022, the rate also increased by 6 percent.

The regional minimum wage is the lowest level and used as the basis for businesses to negotiate and pay wages to labourers. 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 organisations 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.

The International Labor Organization (ILO) assesses that since 2015, Viet Nam has always increased the minimum wage stably and consistently, from US$119 per month to the current US$168 per month. Overall, in the 2015-22 period, the minimum wage in Viet Nam increased by a total of 19.8 percent.

In the ASEAN region, Viet Nam is one of the few countries to maintain salary increases that help increase the real value of workers./.