Vietnam hikes minimum wage by 6 per cent from July
Vietnam has approved a new decree raising the regional minimum wage for labourers. The decree was approved on Sunday by Deputy Prime Minister Phạm Bình Minh and comes into effect on July 1.
The 6 per cent increase is equivalent to a rise of 260,000 dong (391 baht) in Region 1, and 240,000, 210,000, and 180,000 dong in Regions 2, 3, and 4, respectively.
The decree specifies that the minimum hourly wage will range from 15,600 to 22,500 dong (24-25 baht), which also depends on the region.
The geographical classification is determined based on the employer’s place of operation.
Region 1 covers Hanoi and Ho Chi Minh (HCM) City’s urban areas; Region 2 encompasses Hanoi and HCM City's rural areas, along with major urban areas in the country like Can Tho, Da Nang and Haiphong; Region 3 covers provincial cities and the districts of Bac Ninh, Bac Giang and Hai Dưong provinces; and Region 4 comprises the rest of the country.
The change is applicable to workers and employers under labour contracts in accordance with the Labour Code.
The resolution also defines minimum wage as the lowest amount that can be paid to an employee, which is the basis for negotiation and compensation, in the form of a monthly salary. This amount corresponds to the workload and job title in designated work hours, given that the employee fulfils their tasks as assigned.
For workers who are paid on a daily or weekly basis, or based on a piece rate, their salary, when converted to the monthly or hourly rate, must not be lower than the minimum wage.
Viet Nam News
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