On June 12, 2022, the government issued Decree No. 38/2022/NĐ-CP prescribing region-based minimum wages to employees working under employment contracts; the decree will come into effect on July 01, 2022. Therein:
(1) Scope: The monthly minimum and hourly minimum wage apply to employees who work under employment contracts.
(2) Subjects:
- Employees who work under employment contracts as prescribed in the Labour Code;
- Employers as defined in the Labour Code, including Enterprises as defined in the Law on Enterprises; Authorities, organisations, cooperatives, family households, and individuals that employ other people under agreements;
- Other authorities, organisations and individuals are involved in the application of the minimum wages as prescribed in this Decree.
(3) Minimum wages:
|
Region |
Monthly minimum wages (Unit: VND/month) |
Hourly minimum wages (Unit: VND/hour) |
|
Region I |
4.680.000 |
22.500 |
|
Region II |
4.160.000 |
20.000 |
|
Region III |
3.640.000 |
17.500 |
|
Region IV |
3.250.000 |
15.600 |
The list of region-I, region-II, region-III, and region-IV subregions is provided in the Appendix enclosed in the Decree. The determination of a subregion shall be conducted based on the employer’s place of operation.
(4) Application of minimum wage:
- The monthly minimum salary is the minimum wage used as the basis for any agreement between employers and employees on monthly payments; the agreement salaries must not be lower than the monthly minimum wage.
- The hourly minimum salary is the minimum wage used as the basis for any agreement between employers and employees on hourly payments; the agreement salaries must not be lower than the hourly minimum wage.
- With regards to weekly/daily salaries or salaries which are calculated on the basis of products produced or completed pieces of work, such salaries, if converted to monthly or hourly salaries, must not be lower than the monthly/hourly minimum wage.
(5) Effect and responsibility for implementation:
- Employers are required to review current agreements in employment contracts, collective bargaining agreements, as well as company policies to make adjustments accordingly.
- With regards to the agreements and commitments in the employment contract, the collective bargaining agreement or other lawful agreements that are more beneficial to the employee than the provisions of this Decree, the implementation shall continue unless otherwise agreed by the parties.
- Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees, and employers are responsible for implementing this Decree.
Decree No.38/2022/NĐ-CP will come into effect on July 01, 2022.
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