No cuts in overtime pay, allowances when increasing the minimum wage

Cẩm Hà |

The Ministry of Home Affairs requires not to abolish or cut overtime salary regimes, compensation regimes and other regimes when increasing regional minimum wages.

The Ministry of Home Affairs is drafting a Decree regulating the minimum wage for employees working under labor contracts, VNA said.

The expected monthly minimum wage from January 1, 2026 will increase from 250,000-350,000 VND (equivalent to an average of 7.2%) compared to the current minimum wage. Specifically, the regional minimum wage in region I is 5.31 million VND/month, region II is 4.73 million VND/month, region III is 4.14 million VND/month, region IV is 3.7 million VND/month.

The corresponding minimum hourly salary in 4 regions is as follows: 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.

The Ministry of Home Affairs also issued regulations on how to calculate salary levels applicable to specific cases.

In particular, for employees applying the form of weekly or daily salary, according to products or contracts, the salary must not be lower than the minimum monthly salary, or the minimum hourly salary.

The salary conversion based on normal working hours is 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.

When adjusting the minimum wage, employers are responsible for organizing a review of agreements in labor contracts, collective labor agreements and regulations and rules of employers to adjust and supplement them accordingly.

Notably, the Ministry of Home Affairs stated that salary regimes when employees work overtime, work at night, compensation regimes in kind and other regimes as prescribed by labor law must not be abolished or cut.

For the contents agreed upon and committed in labor contracts, collective labor agreements or other legal agreements that are more beneficial to employees (including agreements on salary payment regimes for employees working or positions required through studying and vocational training at least 7% higher than the minimum wage) than the regulations, they shall continue to be implemented, unless the parties have other agreements.

Cẩm Hà
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Quế Chi |

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Increasing regional minimum wage helps workers ease difficulties

Quách Du |

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cannot delay the adjustment of the minimum wage

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