Legal News

[Labor] Official revision of basic salary and minimum wage effective July 1, 2024.

2024/07/11

◆Basic Salary
On June 30, 2024, the Government issued Decree No. 73/2024/ND-CP regulating basic salary. As a result, the basic salary will be increased to VND2,340,000/month effective July 1, 2024. The basic salary applies to officials and civil servants, and this change raises the maximum monthly salary for calculating social and health insurance. In Vietnam, the maximum monthly salary for the calculation of social and health insurance is not allowed to exceed 20 times the basic salary. Therefore, workers who receive a monthly salary that is more than 20 times their base salary will need to adjust their monthly salary for social and health insurance calculations to be increased starting in July 2024.

◆Minimum Wage
On June 30, 2024, the Government issued Decree No. 74/2024/ND-CP regulating the minimum wage. As a result, the minimum monthly and hourly wages after July 1, 2024 are as follows:

Area	Minimum monthly wage (Unit: 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

※Please refer to Decree No. 74/2024/ND-CP for details on each area.

The minimum wage applies to all workers (workers in the private sector) working under labor contracts. Therefore, with the increase of the regional minimum wage, each enterprise should pay attention to and implement the following points.
・Check whether the wage table in the company is below the regional minimum wage, and revise it if necessary.
・Check to see if the salary in the labor contract is below the regional minimum wage, and if necessary, raise the salary in the labor contract after consulting with the employee.
・For workers whose monthly salary for unemployment insurance is more than 20 times the minimum wage, increase the monthly salary for unemployment insurance.

 

References:
・Decree No. 73/2024/ND-CP of June 30, 2024
・Decree No. 74/2024/ND-CP dated June 30, 2024