From July 1, 7, increase the regional minimum wage for employees

On June 12, 6, Permanent Deputy Prime Minister Pham Binh Minh has just signed Decree No. 2022/38/ND-CP effective from July 2022, 1. Promulgate regulations on minimum wages for employees working under labor contracts.

Adjustment of minimum monthly salary increased by 6% on average

The regional minimum wage/month is increased by an average of 6% compared to the current salary (180.000 VND – 260.000 VND)

The Decree stipulates the change of the minimum salary of employees per month according to 4 regions:

  • Region I, the adjusted increase is 260.000 VND, from 4.420.000 VND/month to 4.680.000 VND/month
  • Region II has an adjusted increase of 240.000 VND, from 3.920.000 VND/month to 4.160.000 VND/month
  • Region III, the adjusted increase is 210.000 VND from 3.430.000 VND/month to 3.640.000 VND/month
  • Region IV, the adjusted increase is VND 180.000 from 3.070.000 VND/month to 3.250.000 VND/month

In addition, the decree also clearly states that the monthly minimum wage is the lowest floor salary as a basis for negotiating and paying wages to employees applying the monthly salary form.

The salary paid must be guaranteed according to the job or title of the employee. When an employee works for the prescribed normal period in a month and completes the agreed quota or job, the salary paid to the employee must not be lower than the minimum monthly salary.

Changes to the minimum hourly wage adjustment

The Decree also stipulates to change the minimum wage of employees per hour according to 4 regions:

  • Region I is 22.500 VND/hour
  • Region II is 20.000 VND/hour
  • Region III is 17.500 VND/hour
  • Region IV is 15.600 VND/hour

The hourly minimum wage is the lowest floor wage as a basis for negotiating and paying wages to employees applying the hourly wage form.

The level of salary payment must be guaranteed according to the job or title of the employee. When an employee works for one hour and completes the agreed norm or work, the salary must not be lower than the minimum hourly wage.

Zoning is determined by the location of the employer's base of operations.

In case employees work with weekly, daily, or product-based wages, the wages of these forms of payment, when converted to monthly or hourly wages, must not be lower than the monthly minimum wage. or minimum hourly wage.

See more: Instructions to build the salary scale from 1/7/2022

Subjects of application and implementation of the decree

This Decree stipulates the monthly minimum wage and the hourly minimum wage applied to the following subjects:

  • Employees work under labor contracts in accordance with the provisions of the Labor Code.
  • Employers under the provisions of the Labor Code include: Enterprises under the Enterprise Law; organizations, agencies, cooperatives, households and individuals that hire or employ employees to work for them according to signed agreements.
  • Other organizations, agencies and individuals related to the implementation of the minimum wage rate specified in this Decree.
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