The Ministry of Home Affairs has developed a draft Decree stipulating the minimum wage for employees working under labor contracts, and sent it for comments from ministries, branches, localities and relevant units.
According to the proposed plan in the draft Decree, the minimum wage is expected to increase by an average of 7.8%, implemented from January 1, 2027.
The application of regional areas is determined according to the operating location of the employer as follows: The employer operating in which regional area applies the minimum wage prescribed for that area.
Contributing opinions to the draft Decree, the Ministry of Agriculture and Environment proposed to review the concept of "operating in the area", because it has not yet identified cases where enterprises have headquarters in one locality but branches, factories or employees work in another locality; enterprises have many business locations or employees work mobilely.
This Ministry also proposed regulations according to the area where the worker actually works or where the unit directly using labor has its headquarters.
Responding to the above proposal, the Ministry of Home Affairs said that the draft Decree stipulates that the regional area is determined according to the place of operation of the employer.
In which, regulations on employers with branches and units operating in many areas with different minimum wages have been stipulated in point b, clause 3, Article 3 of the draft Decree: Employers with units and branches operating in areas with different minimum wages, the unit or branch operating in which area shall apply the minimum wage prescribed for that area.
In case employers operate in industrial parks, export processing zones, high-tech zones, concentrated digital technology zones located in areas with different minimum wages as stipulated in point c, clause 3, Article 3 of the draft Decree: Employers operating in industrial parks, export processing zones, concentrated high-tech zones, concentrated digital technology zones located in areas with different minimum wages shall apply according to the area with the highest minimum wage.
According to the Ministry of Home Affairs, this regulation has been applied since 2015 and there has been no report from localities about arising problems.
