The two communes are adjacent, with a regional minimum wage difference of 1.17 million VND/month
On September 22, Lao Dong Newspaper published an article "Recommendation to adjust the application of regional minimum wages to some communes in Ho Chi Minh City", reflecting the draft Decree regulating LTT for employees working under the Labor Union (hereinafter referred to as the draft) with LTT regulations in some communes and wards bordering each other but applying LTT in different regions (zone I and zone III).
There is a large difference between the two LTT levels in this region of 1.17 million VND/month (equivalent to 28.3%). This may have a negative impact on labor relations.
Recently, the Ho Chi Minh City Department of Home Affairs held a meeting with representatives of the Labor Federation, the Management Board of Export Processing and Industrial Zones of Ho Chi Minh City, representatives of the Vietnam Federation of Commerce and Industry, Ho Chi Minh City branch, representatives of the People's Committees of 6 communes and Con Dao Special Zone of Ho Chi Minh City on this issue.
According to Mr. Nguyen Trung Ngan - Department of Labor Relations, Policy and Law of the Ho Chi Minh City Labor Federation - in Ho Chi Minh City (after the merger), although there are communes and wards bordering each other, they apply two LTT levels of regions I and III with a difference of 1.17 million VND (equivalent to 28.3%).
For example, Chau Duc and Kim Long communes apply the draft LTT level of region III of 4.14 million VND/month. These two communes are adjacent to Tan Thanh ward, and are subject to the LTT level of region I of 5.31 million VND/month. Similar to Ngai Giao and Nghia Thanh communes applying the LTT level of Region III, Chau Pha commune applies the LTT level of Region I; Con Dao special zone applies the LTT level of Region III bordering Vung Tau ward applies the LTT level of Region I; Long Hai commune, Long Dien commune applies the LTT level of Region III bordering Phuoc Thang ward.
Border areas apply minimum wages not exceeding one sub-region
Mr. Ngan said that according to the provisions of the draft, the LTT level between communes, wards, and border areas as above is too high.
Previously, in the area bordering Phu My town and Chau Duc district (old Ba Ria - Vung Tau province), labor disputes arose due to the difference in salary areas, only when the Government adjusted them did labor relations stabilize. The draft should apply the principle when regulating regional LTT, the difference between border areas and region I should not exceed one sub-region" - Mr. Ngan said.
At a recent meeting organized by the Ho Chi Minh City Department of Home Affairs, representatives of the People's Committees of Kim Long, Chau Duc, Nghia Thanh, Long Duc, and Long Dien communes agreed to propose adjusting the regional LTT level specified in the draft in these localities from region III to region II (from 4.14 million VND/month to 4.73 million VND/month). The representative of the Management Board of Export Processing and Industrial Zones of Ho Chi Minh City also agreed with this proposal.
In particular, Mr. Phan Trong Hien - Chairman of the People's Committee of Con Dao Special Zone - proposed that the Ministry of Home Affairs consider including in the draft the regional LTT level in Con Dao Special Zone from region III to region I (from 4.14 million VND/month) to 5.31 million VND/month.
According to the draft Decree regulating regional minimum wages for employees working under the Labor Union (expected to be applied from January 2026) being consulted, there will be 4 salary zones in region I of 5.31 million VND/month, region II of 4.73 million VND/month, region III of 4.14 million VND/month and region IV of 3.7 million VND/month respectively.
