Legal News

[Labor] Proposal to increase regional minimum wage in 2024

2023/09/14

At the government’s regular press conference held on September 9, 2023, the Prime Minister proposed an increase in the minimum wage for workers to the Ministry of Labor, Invalids and Social Affairs, taking into account the current socio-economic situation.

At the National Wage Council held on August 9, 2023, a negotiation meeting was held regarding the regional minimum wage adjustment plan for 2024. It was proposed to raise wages by 5~6% compared to the current level, but many remained of the opinion that the increase should be postponed to avoid affecting the many businesses in Vietnam, which continues to suffer.

Based on the above, the National Wage Council will hold another negotiation meeting at the end of November 2023 to discuss plans for raising regional minimum wages in 2024 and implementation timing.

If a decision is made to raise the regional minimum wage, each company will need to keep the following points in mind.
-Check whether the minimum wage in the company’s wage table is lower than the local minimum wage, and make corrections if necessary.
-Check whether the salary in the labor contract is lower than the local minimum wage, and if necessary, increase the salary in the labor contract after consulting with the employee.
-Update the upper limit on salary (20 times the local minimum wage) that is the basis for calculating unemployment insurance.

We will share the further information in our future newsletter, if any would be publicized.

*This article was translated by Yarakuzen.