March 23, 2024 | 16:40 GMT+7

Vietnam to Increase Regional Minimum Wage by 6% in 2024

David Tran -

The increase aims to improve workers' lives, staying ahead of inflation and aligning with recommendations by the National Wage Council.

Weight of Worth: Balancing the Value of Labor with the Currency of Effort.
Weight of Worth: Balancing the Value of Labor with the Currency of Effort.

The Ministry of Labor, War Invalids and Social Affairs has proposed a 6% increase to Vietnam's regional minimum wage, effective July 1, 2024. The move comes after unanimous approval from the National Wage Council.

If the draft decree is approved, monthly minimum wages will be adjusted across four regions. Region 1 will see wages increase to VND 4.96 million ($194.50), region 2 to VND 4.41 million ($172.90), region 3 to VND 3.86 million ($151.30), and region 4 to VND 3.45 million ($135.30).

This increase surpasses the estimated minimum living standard of workers until the end of 2024 by 2%, ensuring workers enjoy an improved quality of life in the face of inflation.

The goal of this adjustment is to harmonize the interests of workers and businesses while fostering recovery and development in the production sector.

The Ministry also proposes a 6% increase in the hourly minimum wage, which would range from VND 16,600 ($0.65) to VND 23,800 ($0.93) depending on the region.

Employees whose salaries fall below the new minimum wage will see adjustments to meet the new standards. Those with equal or higher salaries will have adjustments made according to their labor contracts, collective labor agreements, and enterprise regulations.

This marks the second increase in the regional minimum wage within four years. The previous adjustment took place in July 2022, addressing the economic impact of the Covid-19 pandemic.

This proposal underscores the government's commitment to guaranteeing a minimum living standard for workers while driving labor productivity, economic growth, and business competitiveness.

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