Regional minimum wage increases by an additional 6% from 1/7/2022

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Regulations on the increase in the regional minimum wage for workers according to Decree No. 38/2022/NĐ-CP.

1. Subjects eligible for regional minimum wage increase from 1/7/2022

Subjects eligible for the regional minimum wage increase according to Decree 38

2. Minimum Regional Wage Levels from 1/7/2022

Details of the 2022 regional minimum wage for employees working under contracts and employers under the 2019 Labor Law.

Since the government issued Decree No. 38/2022/NĐ-CP on 12/6/2022, the regional minimum wage for workers from 1/7/2022 has undergone significant changes. The average adjustment in the regional minimum wage is 6%, specified on a monthly or hourly basis. Specific details about the 2022 wage increase will be shared by Mytour shortly.

Regional minimum wage from 1/7/2022 is adjusted to increase by an average of 6% compared to the previous rate, equivalent to an increase ranging from 180,000 to 260,000 VND for each region. The increase in the regional minimum wage brings good news to workers under labor contracts.

Regulations on the increase in the regional minimum wage for workers according to Decree No. 38/2022/NĐ-CP.

Article Index:
1. Subjects eligible for regional minimum wage increase from 1/7/2022.
2. Regional minimum wage levels from 1/7/2022.

1. Subjects eligible for regional minimum wage increase from 1/7/2022

DOWNLOAD THE FULL DECREE 38/2022/NĐ-CP PDF, WORD FILE HERE

Decree 38/2022/NĐ-CP clearly defines the subjects eligible for the regional minimum wage increase from July 1, 2022, including:

- Group 1: Individuals working under a specified-term labor contract, individuals working under an unspecified-term labor contract as stipulated by law (collectively referred to as Workers).

- Group 2: Enterprises, agencies, organizations, cooperatives, households, individuals employing workers under an agreement (collectively referred to as Employers).

- Group 3: Other agencies, organizations, individuals as stipulated by law.

These 03 groups of subjects will be subject to the regional minimum wage increase regime starting from July 01, 2022.

Subjects eligible for the regional minimum wage increase according to Decree 38

To grasp an overview of the information about the subjects, wage increases, and the application of the regional minimum wage in the production and business activities of workers and employers, readers can explore our article on Decree 38/2022/NĐ-CP on the minimum regional wage in 2022.

Read more: Decree 38/2022/NĐ-CP on the minimum regional wage in 2022

2. Minimum Regional Wage Levels from 1/7/2022

In Decree 38/2022/NĐ-CP, the minimum regional wage effective from July 1, 2022, has undergone changes compared to the previous period, specifically an increase. Below is the minimum regional wage from 1/7/2022:

+ Region I: 4,680,000 VND/month (Old rate: 4,420,000 VND/month); 22,500 VND/hour.

Example of Region I: Thủ Đức City, Củ Chi District, Hóc Môn District, Bình Chánh District, Nhà Bè District of Ho Chi Minh City; Ba Đình District, Bắc Từ Liêm District of Hanoi.

+ Region II: 4,160,000 VND/month (Old rate: 3,920,000 VND/month); 20,000 VND/hour.

Example of Region II: District Can Gio (Ho Chi Minh City), districts in Hanoi such as Ba Vi, Soc Son, Ung Hoa, My Duc.

+ Region III: 3,640,000 VND/month (Old rate: 3,430,000 VND/month); 17,500 VND/hour.

Example of Region III: Chi Linh, Con Dao, Van Don.

+ Region IV: 3,250,000 VND/month (Old rate: 3,070,000 VND/month); 15,600 VND/hour.

Example of Region IV: Cam Khe, Doan Hung, Ha Hoa, Bat Xat, Bac Ha.

=> Thus, it can be seen that the 2022 regional minimum wage has increased by an average of 6% compared to the old rate, equivalent to an increase from 180,000 to 260,000 VND, depending on the economic, social situation, and the development of each economic region.

- Among them:

+ The minimum wage (per month, per hour) is the lowest wage used as a basis for negotiation and payment for employees applying the corresponding form of payment (per month/per hour). It ensures the wage according to the work/position of the employee when working the prescribed hours and completing the agreed labor/task quota, not lower than the regional minimum wage.

+ In cases where employees are subject to payment methods such as weekly/daily/product basis, the paid amounts, when converted to monthly/hourly rates, must not be lower than the minimum wage mentioned earlier.

Details of the 2022 regional minimum wage for employees working under contracts and employers under the 2019 Labor Law.

Regional minimum wage from 1/7/2022 is one of the recent points of significant interest. Starting from July 1, 2022, with the effective implementation of Decree 38, employees will be subject to the new regional minimum wage.

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Frequently Asked Questions

What significant changes were made to the regional minimum wage from July 1, 2022?

On July 1, 2022, the regional minimum wage was increased by an average of 6%, translating to a raise of 180,000 to 260,000 VND across various regions, as established by Decree No. 38/2022/NĐ-CP.

Who qualifies for the regional minimum wage increase as per Decree No. 38/2022/NĐ-CP?

The eligible subjects include individuals with specified or unspecified-term labor contracts, employers like enterprises and cooperatives, and other organizations defined by law. All these groups will benefit from the wage increase effective from July 1, 2022.

What are the new regional minimum wage levels effective from July 1, 2022?

As of July 1, 2022, the minimum regional wage rates are: Region I - 4,680,000 VND/month, Region II - 4,160,000 VND/month, Region III - 3,640,000 VND/month, and Region IV - 3,250,000 VND/month, reflecting an increase from previous rates.

How does the new regional minimum wage affect employees under labor contracts?

The new regional minimum wage ensures that employees under labor contracts receive at least the established minimum pay based on their hours worked or completed tasks. This ensures fair compensation in accordance with the updated wage structure.

Are there specific examples of regions affected by the wage increase from Decree 38?

Yes, specific examples include Region I, which encompasses areas like Thủ Đức City and Ba Đình District in Hanoi, while Region II includes districts like Can Gio in Ho Chi Minh City. Each region has distinct minimum wage levels reflecting local economic conditions.