On June 12, 2022, the Government issued Decree 38/2022/NĐ-CP stipulating the minimum wage for employees working under labor contracts. This Decree will officially take effect from July 1, 2022.
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Increase in the monthly regional minimum wage
The minimum wage will increase by 6% on average, corresponding to a salary of VND 180,000 - VND 260,000 compared to the current minimum wage.
The monthly regional minimum wage from July 1, 2022, will be applied as follows in Region I at 4,680,000 VND/month, an increase of 260,000 VND from the current level of 4,420,000 VND/month. Region II is at 4,160,000 VND/month, an increase of 240,000 VND compared to the current 3,920,000 VND/month. Region III is at 3,640,000 VND/month, an increase of 210,000 VND compared to the current 3,430,000 VND/month. Region IV is at 3,250,000 VND/month, an increase of 180,000 VND compared to the current level of 3,070,000 VND/month.
There is an hourly regional minimum rate of pay
In Clause 2, Article 91 of the Labor Code 2019, there is a provision: "The minimum wage is set by region, set by month and hour", but the Decrees stipulate the regional minimum wage for employees. There was no regulation on the hourly regional minimum wage for jobs under previous labor contracts.
Therefore, until Decree 38/2022/NĐ-CP has officially established the regional minimum wage by an hour from July 1, 2022, for employees in Region I is 22,500 VND/hour, Region II is 20,000 VND/hour. VND/hour, zone III is 17,500 VND/hour, zone IV is 15,600 VND/hour.
Change in the areas where the minimum salary is applied
From July 1, 2022, the regions applying the regional minimum wage are specified in the appendix promulgated together with Decree 38/2022/ND-CP, in which there is a change in the areas where the regional minimum wage is applied. For example, Ha Long City in Quang Ninh Province belongs to Region I (Currently in Region II); Vinh city, Cua Lo town, and Nghi Loc and Hung Nguyen districts of Nghe An province belong to Region II (Currently in Region III); Bac Lieu city in Bac Lieu province in region II (Currently in region III); Van Don, Hai Ha, Dam Ha, and Tien Yen districts of Quang Ninh province belong to Region III (Currently in Region IV)...
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Decree 38/2022/NĐ-CP issued by the Government on June 12, 2022, regulating the minimum wage for employees working under labor contracts will officially take effect from July 1, 2022.
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