What are the hourly region-minimum wage levels in 2022?

1. What is the hourly minimum wage level?

Clause 2, Article 91 of the Labor Code prescribes: 

2. Minimum wage levels shall be determined by region and set on a monthly and hourly basis. Accordingly, the minimum wage levels can be determined on an hourly basis beside on the monthly basis.

This is the first time this regulation is prescribed in the Decree No. 38/2022/ND-CP, the hourly minimum wage levels are prescribed as follows:

Article 4. Application of minimum wage levels

2. 2. The hourly minimum wage levels are the lowest ones which serve as a basis for employers and employees to reach agreement on and pay wages, in case of paying wages on an hourly basis, provided that the level of wage to be paid (accordingly job or title) to an employee who fulfills labor norms or work as agreed in an hour, must not be lower than the hourly minimum wage levels.

Accordingly, hourly minimum wage levels are the lowest ones as the basis in the case of paying wages on an hourly basis.  An employee is paid at the level of the wage when he/she fulfills labor norms or works as agreed in an hour, which must not be lower than the hourly minimum wage levels.

2. What are the hourly minimum wage levels in 2022?

Clause 1, Article 3 of the Decree No. 38/2022/ND-CP prescribes the hourly minimum wage levels for employees who are working in enterprises from July 01, 2022 as follows:

Note: For workers who are paid on a daily or weekly basis, or who are paid based on piece work or products turned out, their salary, when converted into the monthly or hourly rate, must not be lower than the monthly or hourly minimum wage level. 

3. What are the fines for paying hourly wages lower than the hourly minimum wage level?

In accordance with the Clause 1, Article 90 of the Labor Code 2019, wage is a money amount which is paid by the employer to the employee as agreed upon for the latter to do a certain job, including job- or title-based wage amount, wage-based allowance, and other additional amounts.

Within that, wage-based allowance and other additional amounts are not compulsory, job- or title-based wage amount must not be lower than the region-based minimum wage levels.

Therefore, an employee is paid at the level of wage when he/she fulfills labor norms or work as agreed in an hour which must not be lower than the minimum wage levels.

The employers shall be imposed the fine for paying the lower hourly wage than the minimum wage levels for administrative violations in labor in accordance with the provisions prescribed in the Clause 3, Article 17 of the Decree No. 12/2022/ND-CP as follows:

a) A fine of between VND 20,000,000 and VND 30,000,000 for violations related from 01 employees to 10 employees.

b) A fine of between VND 30,000,000 and VND 50,000,000 for violations related from 11 employees to 50 employees.

c) A fine of between VND 50,000,000 and VND 75,000,000 for violations related to 51 employees or more.

Therefore, the employers shall be imposed the fines for paying hourly wages to employees with the lower amount than the hourly minimum wages as follows:

Note: The interest thereof, calculated according to the highest demand deposit interest rate of the state commercial banks announced at the time the penalties are imposed on violations.