On June 12, 2022, Deputy Prime Minister Pham Binh Minh signed Decree No. 38/2022/ND-CP, effective from July 1, 2022, promulgating regulations on the minimum wage for employees working under labor contracts.
1. Adjust the monthly minimum wage to increase by an average of 6%.
The regional minimum wage per month will be increased by an average of 6% compared to the current level (180.000 VND – 260.000 VND).
The decree stipulates changes to the minimum monthly wage for workers across four regions:
- In Region I, the adjusted increase is 260.000 VND, from 4.420.000 VND/month to 4.680.000 VND/month.
- Region II saw an adjusted increase of 240.000 VND, from 3.920.000 VND/month to 4.160.000 VND/month.
- Region III saw an adjusted increase of 210.000 VND, from 3.430.000 VND/month to 3.640.000 VND/month.
- Region IV saw an adjusted increase of 180.000 VND, from 3.070.000 VND/month to 3.250.000 VND/month.
Furthermore, the decree also clarifies that the monthly minimum wage is the lowest floor wage used as a basis for negotiating and paying wages to employees who are paid on a monthly basis.
Wages paid must be commensurate with the employee's job or position. When an employee works the normal number of hours stipulated in the month and completes the agreed-upon quota or tasks, the wage paid to the employee must not be lower than the minimum wage for the month.
2. Changes to the minimum hourly wage
The decree also stipulates changes to the minimum hourly wage for workers in four regions:
- Zone I is 22.500 VND/hour
- Zone II is 20.000 VND/hour
- Region III is 17.500 VND/hour
- Region IV is 15.600 VND/hour
The minimum hourly wage is the lowest floor wage used as a basis for negotiating and paying wages to employees who are paid on an hourly basis.
Wage payments must be commensurate with the employee's job or position. When an employee works for an hour and completes the agreed-upon quota or task, their wage must not be lower than the minimum hourly wage.
Zoning is determined by the location of the employer's business premises.
In cases where employees are paid weekly, daily, per piece, or on a contract basis, the wages from these forms of payment, when converted to monthly or hourly rates, must not be lower than the minimum monthly wage or the minimum hourly wage.
See more: Guidelines for constructing salary scales from July 1, 2022
3. Subjects to which the decree applies and is implemented.
This Decree stipulates the minimum monthly wage and minimum hourly wage applicable to the following groups:
- Employees work under labor contracts as stipulated in the Labor Code.
- Employers, as defined by the Labor Code, include: Enterprises as defined by the Enterprise Law; organizations, agencies, cooperatives, households, and individuals who hire and employ workers for them under signed contracts or agreements.
- Other organizations, agencies, and individuals involved in implementing the minimum wage stipulated in this Decree.
