Regional minimum wage increase in 2022, how much more money can workers get per month?

Increase regional minimum wages for workers, workers in enterprises, cooperatives…

The 2019 Labor Code, effective from January 1, 2021, contains many changes related to regional minimum wages.

Specifically, Clause 1, Article 91 of the Labor Code 2019 minimum wage regulations The minimum wage is the lowest salary paid by the enterprise to the employee who does the simplest job in normal working conditions (complete the agreed job) in order to ensure the minimum standard of living of the employee. workers and their families, suitable to socio-economic development conditions.

However, this salary must ensure two conditions that are, not lower than the regional minimum wage for untrained workers doing the simplest jobs and at least 7% higher than the minimum wage. regions for workers who have undergone vocational training.

In essence, the salary level serves as the basis for the employee and the enterprise to reach an agreement, and at the same time, ensures the interests of the employee. This salary is also the basis for paying and enjoying social insurance, health insurance and unemployment insurance benefits of employees.

Minimum wage applied in 4 regions. Conditions apply based on each region, businesses in any region will apply the salary in that region.

If an enterprise has many branches, the branch office in any region shall apply the base salary according to the salary level in that region.

Unlike the base salary, which is only applied to agencies, enterprises, and public units of the State, the regional minimum wage will be applied to the private sector and joint-stock enterprises with state capital. countries, FDI enterprises.

Specifically, calculating wages for employees working in enterprises, cooperatives, unions of cooperatives, cooperative groups, farms, households, individuals and other organizations that hire labor under contracts. labor.

Unlike the base salary, which is taken from the state budget, the minimum wage is taken from the enterprise’s budget. Normally, the regional minimum wage will be adjusted once a year to match the minimum living standards of workers.

The regional minimum wage increase only affects a low-wage section

Currently, the country has about 24 million employees (statistics of the second quarter of 2021) working in enterprises and industrial parks.

In addition, there is a large part of laborers working in cooperatives, cooperative groups, salaried workers, and hired workers. These are the subjects directly affected by the regional minimum wage increase.

According to Mr. Le Dinh Quang – Deputy Head of Labor Relations Department (Vietnam General Confederation of Labor), although this minimum wage increase does not affect most laborbut it will be an incentive for businesses to improve wages for a part of low-wage workers, equal to the current regional minimum wage.

Currently, the Ministry of Labour, Invalids and Social Affairs and the Vietnam General Confederation of Labor have channels to monitor the implementation of wage policies, including the issue of regional minimum wages.

“The law encourages enterprises to pay employees higher than the regional minimum wage, and applies the calculation of wages taking into account the technical qualifications of the workers. Of course, how the increase depends on the agreement of the employees. employees and employers in the enterprise”, Mr. Quang said.

Thus, in essence, only workers whose wages are equal to the current regional minimum wage will receive a raise.

However, in reality, increasing the regional minimum wage can be the basis for enterprises and employees to negotiate on the salary regime.

Many businesses also increase wages for employees when the regional minimum wage increases, although the actual salary of workers is much higher than the current regional minimum wage.

Mr. Quang recommends that workers should know the minimum wage in the specific region where they work to ensure their benefits.