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Dear Valued Client,
We would like to update you about "Prescribing Statutory Minimum Regional Wages paid to employees who is working under Employment Contracts”
Note: The following information is in the process to be considered by the Vietnamese Government, if there is any change once the official information is announced, we will update you accordingly.
- The Vietnamese Government expects the minimum regional wages to be able to increase from 6% from July 01 2024. Accordingly, the regional minimum wage is the lowest salary used as a basis for negotiating and paying wages to employees applying the form of monthly/hourly wages, ensuring wages according to the employee's title and occupation that working for one month/hour and completing the agreed labor norm or the job not less than the minimum monthly/hourly wage, details as follows:
| Region | Statutory regional minimum wages per month (Unit: VND/month) |
Statutory regional minimum wages per hour (Unit: VND/hour) |
|---|---|---|
| Region I | 4.960.000 | 23.800 |
|
Region II |
4.410.000 | 21.200 |
|
Region III |
3.860.000 | 18.600 |
|
Region IV |
3.450.000 | 16.600 |
- Minimum wages for employees who have been trained at least 7% higher than the regional minimum wage, as prescribed at Point 2.6, Clause 2, Article 6 of Decision 595/QD-BHXH:
| Region | Statutory regional minimum wages per month (Unit: VND/month) |
|---|---|
| Region I | 5.307.200 |
|
Region II |
4.718.700 |
|
Region III |
4.130.200 |
|
Region IV |
3.691.500 |
Effect to Employer
- Increased salary cost for low salary staff:
- Increase to lowest paid.
- Affect those with training who must be paid at least 7% above the new minimum regional wage.
- Increased Unemployment Insurance (UI) contributions for those with salaries greater than the current cap to the new cap.
- The salary cap for UI is changed accordingly, equals to 20 times of minimum regional wage.
| Region |
(Up to June 30 2024) (Unit: VND) |
New Unemployment Insurance salary Cap (From July 01 2024) (Unit: VND) |
| Region I |
|
99.200.000 |
| Region II |
|
88.200.000 |
| Region II |
|
77.200.000 |
| Region II |
|
69.000.000 |
HR Professional Checklist
- Check that employees are paid at least the minimum wage for their region.
- Plan the increase of budget for salary, Social - Medical - Unemployment insurance accordingly.
- Communicate the change to your affected staff.
- Check July payroll for compliance.
What do you need to do?
If you are a customer of HR2B, we are ready to help you with any query concerning this matter. Moreover, we could assist you to check all your employees who have a salary wage under the new regional minimum wage and inform you of your next action to make sure everything is done correctly and in accordance with the law.
If you are not yet a client of HR2B, please call us to know what HR2B can help you with and regularly update the latest changes of the regime of the law of Vietnam.
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