English
RSS
The Ministry of Home Affairs is currently soliciting public feedback on the draft decree, which aims to ensure minimum living standards for workers while fostering a more transparent and equitable wage policy. The average increase of 7.2 percent across four wage regions reflects efforts to align wages with rising living costs and support sustainable labor relations.
Under the draft, the monthly minimum wage would be adjusted to VND 5.31 million for Region I, VND 4.73 million for Region II, VND 4.14 million for Region III, and VND 3.7 million for Region IV. Corresponding hourly minimum wages are proposed at VND 25,500, VND 22,700, VND 20,000, and VND 17,800, respectively.
The draft decree makes clear that the increase in minimum wage must not be used as grounds to reduce other lawful entitlements. Enterprises are required to maintain —or, if possible, improve— existing employee benefits, including overtime pay, night shift compensation, in-kind allowances, and other supplementary payments. Favorable terms already agreed upon in individual labor contracts, collective labor agreements, or other lawful arrangements must continue to be honored unless mutually amended by both parties.
Additionally, the draft reaffirms that employees who possess vocational training or technical qualifications must continue to receive wages at least 7 percent higher than the applicable minimum wage.
To promote consistency and prevent underpayment across various employment structures, the draft introduces standardized formulas for converting wages. Monthly wages would be calculated by multiplying weekly pay by 52 and dividing by 12. Daily wages would be based on the number of standard working days in a month, while piece-rate or contractual pay would be converted based on actual working time, expressed in hourly or monthly terms. These methods are intended to ensure that all forms of payment comply with the minimum wage regime.
For enterprises operating across multiple regions, the minimum wage applicable to each employee will depend on the location of their workplace. In cases where an industrial park or export processing zone spans multiple wage regions, the highest applicable rate will apply. In the event of administrative boundary changes, such as the splitting or renaming of localities, the prevailing wage level will remain in effect until new guidance is issued. Where a new administrative unit is established from areas falling under different wage regions, the highest of the previous regional wage levels will apply.- (VLLF)
