Decree 38/2022/ND-CP stipulating the minimum wage for employees working under labor contracts

LexNovum Lawyers

14/06/2022

On June 12, 2022, the Government issued Decree 38/2022/ND-CP stipulating the minimum wage for employees working under labor contracts, which will be applied from July 1, 2022 and replace Decree 90/2019/ND-CP.

Specifically, the minimum monthly and hourly minimum wages for employees working for employers in four regions are as follows:

1. Regarding the monthly minimum salary

Region I: 4.680.000 VND /month.
Region II: 4.160.000 VND /month.
Region III: 3.640.000 VND /month.
Region IV: 3.250.000 VND /month.

The above-mentioned minimum wage increases by 6% compared to the current minimum wage.
On July 1, when the regional minimum wage increases, workers who are being paid less than the regional minimum wage will receive an increase in wages. The salary after the increase must be equal to or greater than the regional minimum wage specified in Decree 38/2022/ND-CP. In addition, the monthly social insurance premium will be based on the monthly salary on which social insurance premiums are based.

2. Regarding the hourly minimum wage

Region I: 22.500 VND/hour;
Region II: 20.000 VND/hour;
Region II: 17.500 VND/hour;
Region IV: 15.600 VND/hour.

This is new content added: Previously, although the Labor Code 2012 and the Labor Code 2019 both mentioned determining the minimum hourly and monthly wages, the Decrees regulating the regional minimum wages only the monthly minimum wage, not the hourly minimum wage. Decree 38/2022/ND-CP is the first Decree to record the minimum hourly wage. Accordingly, the hourly minimum wage is the lowest salary as a basis for negotiating and paying wages to employees applying the hourly wage form, ensuring the salary according to the employee’s job or title working for one hour and completing the agreed labor or work norm not less than the hourly minimum wage.

Executor: LexNovum Lawyers