Legal News

Formal submission to the government of a minimum wage increase effective July 1, 2024

2024/02/19

On February 5, 2024, the National Wage Council formally proposed to the government a 6% monthly increase in the regional minimum wage for enterprises, effective July 1, 2024. If this proposal is approved, the regional minimum wages after the 6% increase will be as follows;

Area, Monthly, Hourly Wage
Area 1: 4.96 million, VND/month, 23,800 VND/hour
Area 2: 4.41 million, VND/month, 21,200 VND/hour
Area 3: 3.86 million, VND/month, 18,600 VND/hour
Area 4: 3.45 million, VND/month, 16,600 VND/hour
※ For details on each area, please refer to the appendix of Decree 38/2022/ND-CP below.
https://www.i-glocal.com/wp-content/uploads/2024/02/Decree-38.2022_ND-CP.pdf

In relation to the above, companies need to start reviewing various labor-related procedures, such as;
∙ Review and revision of salary schedule
∙ Salary adjustments and negotiations with workers in cases where the salary in the current labor contract is lower than the revised minimum wage
∙ Updating the maximum monthly salary for unemployment insurance, which is 20 times the regional minimum wage, etc.

We will provide updates as soon as the official government decree on the regional minimum wage is issued by the government.

Reference Decree
-Decree 38/2022/ND-CP