Is increasing the base or minimum wage beneficial to workers?

Thục Quyên |

Reader Minh Duc asked: Is it better for workers to increase the current base salary of 2.34 million VND to a higher level or to increase the minimum wage?

YouMe Law Firm LLC replied:

Clause 2, Article 3 of Decree 73/2024/ND-CP is as follows:

Base salary

1. Basic salary used as basis:

a) Calculate salary levels in salary tables, allowance levels and implement other regimes according to law provisions for subjects specified in Article 2 of this Decree;

b) Calculate operating and living expenses according to the provisions of law;

c) Calculate deductions and benefits based on basic salary.

2. From July 1, 2024, the basic salary is 2,340,000 VND/month.

Thus, the basic salary is the basis for calculating salaries for cadres, civil servants, public employees, salary and allowance recipients, and employees working in agencies, organizations, and public service units receiving operating expenses supported by the state budget.

As for workers' wages, according to Clause 1, Article 90 of the 2019 Labor Code, this is the wage agreed upon by the employee and the employer to perform certain work, including wages according to work or position, salary allowances and other supplements.

Therefore, salary increases for workers depend on the agreement between the parties and are not implemented according to the basic salary increase policy.

Regarding regional minimum wages, according to Clause 1, Article 91 of the 2019 Labor Code, it is stipulated as follows:

Minimum wage

1. Minimum wage is the lowest wage paid to workers doing the simplest work under normal working conditions to ensure the minimum living standard of workers and their families, in accordance with socio-economic development conditions.

2. Minimum wage is determined by region, fixed by month and hour.

3. The minimum wage is adjusted based on the minimum living standards of workers and their families; the correlation between the minimum wage and market wages; the consumer price index, economic growth rate; the relationship between labor supply and demand; employment and unemployment; labor productivity; and the payment capacity of enterprises.

4. The Government shall detail this Article; decide and promulgate the minimum wage based on the recommendations of the National Wage Council.

At the same time, according to Clause 2, Article 90 of the 2019 Labor Code, the salary according to the job or title must not be lower than the minimum wage.

Thus, the minimum wage is the lowest wage paid to employees. Therefore, in case the regional minimum wage increases higher than the actual salary of employees, the enterprise is required to increase the salary for employees with a salary at least equal to the regional minimum wage.

Thục Quyên
RELATED NEWS

Thousands of hectares of land fund, what projects is Vinaconex investing in?

|

Vinaconex is owning thousands of hectares of land across the country, and also participating in the construction of many infrastructure packages, airports and expressways with a scale of tens of trillions of VND.

Early elections in Truong Sa special zone

|

Khanh Hoa - Cadres, soldiers and people on Sinh Ton Island have participated in the election of National Assembly deputies of the 16th term and People's Council deputies at all levels for the 2026 - 2031 term.

Vietnamese Embassy in Israel recommends citizens

|

The Vietnamese Embassy calls on Vietnamese people in Israel to comply with safety guidelines in the context of emergency measures being applied.

Warehouse collapse in Ho Chi Minh City kills 1 person, injures 3

|

Ho Chi Minh City - In Ho Chi Minh City, a warehouse collapse occurred, killing 1 person and injuring 3 others.

Hoa Minzy and the truth about the wedding photo with Army Captain Van Cuong

|

A photo believed to be a wedding photo of singer Hoa Minzy and Captain Thang Van Cuong suddenly spread on social networks, causing a stir among many viewers.

Resilient female nurses at the boundary of life and death

|

In intensive care hospital rooms, female nurses are silently overcoming pressure, diligently caring for and fighting for the lives of seriously ill patients.

Leaders of the Vietnam General Confederation of Labor attend the Women Workers' Day in Da Nang

|

Da Nang - Leaders of the Vietnam General Confederation of Labour attend and congratulate the Women Workers' Day, spreading good deeds from the Trade Union movement.

Không tăng lương cơ sở vẫn tăng lương hưu?

Quỳnh Chi |

Bạn đọc Ngọc Minh hỏi: Theo quy định mới nhất sẽ vẫn tiếp tục tăng lương hưu dù không tăng lương cơ sở có đúng không?

Limiting the number of people eligible for pension increases from July 2025

Thục Quyên (T/H) |

The new pension policy will increase pensions in 2025, but not everyone will receive an increase and will be limited to certain groups.

Tiếp tục tăng lương cơ sở sau đợt tăng 30%?

Hà Anh |

Bạn đọc Đoàn Phú hỏi: Sau đợt tăng lương cơ sở 30% thì có tiếp tục tăng trong thời gian chờ cải cách tiền lương nữa không?