Under the new decree, monthly minimum wages will increase by VND310,000 (US$12.6) to VND390,000 (US$15.17), depending on the region.
Specifically, the monthly minimum wage in Region I will rise from VND5.31 million to VND5.7 million, the highest among the four regions. In Region II, it will increase from VND4.73 million to VND5.08 million; in Region III, from VND4.14 million to VND4.45 million; and in Region IV, from VND3.7 million to VND4.04 million.
Hourly minimum wages will also increase. The rate in Region I will rise from VND25,500 to VND27,400 per hour; Region II, from VND22,700 to VND24,400; Region III, from VND20,000 to VND21,400; and Region IV, from VND17,800 to VND19,400.
The monthly minimum wage serves as the lowest pay threshold for negotiating and paying employees under monthly wage arrangements. It ensures that employees who work normal hours for a full month and meet agreed work quotas or duties receive no less than the applicable regional minimum wage for their job or position.
Similarly, the hourly minimum wage is the lowest rate used as the basis for negotiating and paying employees under hourly wage arrangements. Employees must receive at least the applicable hourly minimum for their work or position, provided they fulfill the agreed work requirements.
The decree also stipulates that employers must not abolish or reduce existing wage-related benefits, including payments for overtime and night work, in-kind allowances, and other entitlements provided for under labor laws.
