The Ministry of Justice is reviewing the Draft Decree regulating the minimum wage developed by the Ministry of Home Affairs before submitting it to the Government for approval.
Accordingly, the Draft Decree stipulates the adjustment of the minimum wage to increase by 7.2% compared to the current level to be applied from January 1, 2026.
The draft stipulates the minimum monthly salary levels in 4 regions as follows: Region I is 5,310,000 VND/month, Region II is 4,730,000 VND/month, Region III is 4,140,000 VND/month, Region IV is 3,700,000 VND/month.
The above minimum wage increases from 250,000 VND - 350,000 VND (equivalent to an average of 7.2%) compared to the current minimum wage.
The above minimum wage adjustment is about 0.6% higher than the minimum living standard of employees until the end of 2026 to improve employees.
The Department of Home Affairs of Dien Bien province has given its opinion on the draft Proposal and the Decree regulating the minimum wage.
Accordingly, the provincial Department of Home Affairs has proposed adding an illustrative table on how to convert salaries by month, week, day, and hour to facilitate businesses in the implementation process.
Responding to the above opinion, the Ministry of Home Affairs said that the conversion method has been specifically regulated in Article 4 of the draft.
The minimum hourly wage is the lowest wage used as a basis for negotiating and paying wages to employees who apply the form of hourly wages, ensuring the salary according to the job or position of the employee working in an hour and completing the agreed labor norms or work must not be lower than the minimum hourly wage.
For employees applying the form of weekly or daily salary payment or by product or contract salary, the salary of these forms of salary payment if converted monthly or by hour must not be lower than the minimum monthly or hourly minimum wage.
The salary is converted monthly or hourly based on normal working hours chosen by the employer according to the provisions of labor law as follows:
The salary is converted monthly by the salary per week with 52 weeks divided by 12 months; or the salary per day multiplied by the number of normal working days in the month; or the salary per product, the contract is implemented during normal working hours in the month.
The salary is converted by the hour to the salary by week, by day divided by the normal working hours of the week, by day; or the salary by product, the contract salary divided by the number of working hours during the normal working hours to produce products, perform contract tasks.
"This regulation is inherited from Decree 38/2022 and so far there has been no response on any problems" - the Ministry of Home Affairs said.
