Standing Deputy Prime Minister Pham Binh Minh signed Decree No. 38/2022/ND-CP on regulating regional minimum wage of workers on June 12. The new regulation will come into force on July 1, 2022.
Under the decree, the minimum monthly wage will be raised six percent, which is equivalent to VND260,000 (US$11.23) in Region I; VND240,000 (US$10.37) in Region II; VND210,000 (US$9.07) in Region III; and VND180,000 (US$7.77) in Region IV.
The decree also defines that the minimum monthly salary is the lowest salary paid for employees and it is considered as a basis for negotiating and paying wages. This amount corresponds to the workload and job title in designated working hours, given that the employee fulfils their tasks as assigned.
The decree also stipulates the minimum hourly wage in the four regions: VND22,500 (US$0.97) in Region I; VND20,000 (US$0.86) in Region II; VND17,500 (US$0.76) in Region III; and VND15,600 (US$0.67) in Region IV.
Standing Deputy Prime Minister Pham Binh Minh signed Decree No. 38/2022/ND-CP on regulating regional minimum wage of workers on June 12. The new regulation will come into force on July 1, 2022.
For workers who are paid on a daily or weekly basis, or based on a piece rate, their salary must not be lower than the minimum wage when converted to the monthly or hourly rate.
The geographical classification is determined based on the employer's place of operation. Region 1 covers Hanoi and Ho Chi Minh City's urban areas. Region 2 comprises Hanoi and Ho Chi Minh City's rural areas, along with major urban areas such as Can Tho, Da Nang and Hai Phong. Region 3 includes provincial cities and the districts of Bac Ninh, Bac Giang, and Hai Duong provinces and Region 4 consists of the rest of the country.
The decree is applicable to the following subjects:
- Employees work under a labour contract in accordance with the provisions of the Labour Code.
- Employers regulated in the Labour Code include enterprises in pursuant to the Law on Enterprises; agencies, organizations, collectives, households, and individuals hiring employees as agreed upon by the parties.
- Other agencies, organizations, and individuals are relevant to the implementation of the regional minimum wage promulgated in the decree.