According to the draft Decree regulating the minimum wage for employees being developed by the Ministry of Home Affairs, the subjects of application include:
1. Employees work under labor contracts according to the provisions of the Labor Code.
2. Employers according to the provisions of the Labor Code, including:
a) Enterprises as prescribed by the Law on Enterprises.
b) Agencies, organizations, cooperatives, households, and individuals that hire or employ employees to work for them according to the agreement.
3. Other agencies, organizations and individuals related to the implementation of the minimum wage prescribed in this Decree.
The draft decree also specifically stipulates the minimum monthly salary and minimum hourly salary for employees working for employers in the regions as follows:
Regarding the new minimum wage according to the draft, the Ministry of Home Affairs said that the above minimum wage increased from 250,000 - 350,000 VND (equivalent to an average of 7.2%) compared to the current minimum wage.
Notably, 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.
At the same time, there is sharing and harmonizing the interests of workers and businesses, both improving the lives of workers and paying attention to ensuring the maintenance and development of business production and business of businesses.
Regarding the minimum hourly wages, the draft developed by the Ministry of Home Affairs specifically stipulates the levels according to 4 regions:
- Region I is 25,500 VND/hour
- Region II is 22,700 VND/hour
- Region III is 20,000 VND/hour
- Region IV is 17,800 VND/hour
Also according to information from the Ministry of Home Affairs, the minimum hourly wage will continue to be determined based on the conversion method equivalent to the minimum monthly wage and standard working hours according to the provisions of the Labor Code.
The above conversion method is recommended by experts from the International Labor Organization (ILO) for Vietnam to choose and actually use when calculating the minimum hourly wage from 2022 to present.
It is expected that this Decree will take effect from January 1, 2026.
From the time the decree is passed, employers operating in the area in which they are located will apply the minimum wage prescribed for that area.
For units with many branches operating in areas with different minimum salaries, the unit or branch operating in each area shall apply the minimum wage prescribed for that area.
In particular, employers operating in industrial parks and export processing zones located in areas with different minimum wages shall apply the highest minimum wage according to the area.
