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

Driver stops car, rescues child standing in the middle of the road in Ho Chi Minh City

|

Ho Chi Minh City - A driver urgently stopped the car, rescuing a child standing in the middle of DT 741 road section passing through Hoa Loi ward.

Passenger car accident due to rain, many passengers luckily escaped

|

Quang Ngai - Due to rain and slippery roads, a passenger car accident overturned by a ditch.

3-magnitude earthquake shakes Lao Cai highlands

|

Lao Cai - An earthquake has been recorded in Thac Ba commune.

Expecting a new face for the Hoang Thi Loan Memorial Area in Hung Yen

|

Hung Yen - People in Van Noi village are placing high hopes on expanding the campus of the Memorial House of Mrs. Hoang Thi Loan.

Dozens of Japanese ships stranded as US blockades Hormuz

|

About 40 Japanese-related ships are still trapped in the Persian Gulf as the US blockades the Strait of Hormuz, increasing global transportation and energy risks.

Live volleyball VTV Binh Dien Long An vs LPB Ninh Binh

|

Live match between VTV Binh Dien Long An vs LPB Ninh Binh at the 2026 National Volleyball Championship, taking place at 5:30 PM today (April 14).

White stone mine in Lao Cai accused of causing trouble to villages, waste dump hanging over residents' heads

|

Lao Cai - People in Luc Yen commune believe that the stone mine of R.K Marble Company has continuously caused pollution for many years, disrupting daily life.

Prolonged consequences of overlapping Tam Dao National Park

|

The works located on land areas overlapping with the planning of Tam Dao National Park leave many long-term consequences for the ecosystem and natural environment.

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?