Legal News

[Personnel and Labor Relations] Formal proposal for minimum wage increase effective July 1, 2024

2024/05/23

Following up on previous news, on May 18, 2024, the Ministry of Labor, Military and Social Affairs submitted a formal proposal for an increase in regional minimum wages to be effective July 1, 2024.
If approved, the regional minimum wages after the 6% increase will be as follows.

Area	Minimum Wage for Monthly Wage (in VND/month)	Minimum Wage per Hour (Unit: VND/hour)
Area 1	4,960,000	23,800
Area 2	4,410,000	21,200
Area 3	3,860,000	18,600
Area 4	3,450,000	16,600

※For details on each area, please refer to the draft decree below (in Vietnamese).
https://thuvienphapluat.vn/van-ban/Lao-dong-Tien-luong/Nghi-dinh-muc-luong-toi-thieu-lao-dong-lam-viec-theo-hop-dong-603278.aspx

In line with the above, companies need to review and adjust the following labor issues

・Review and revision of salary tables
・Adjustment of the salary in the labor contract (agreement with the worker to review the salary in accordance with the revision of the regional minimum wage).
∙ Update of the maximum monthly salary for unemployment insurance, which is 20 times the regional minimum wage, etc.

The decree is expected to become effective July 1, 2024. As soon as the official decree is issued by the government, we will update the information in Law News.