Proposing to increase the regional minimum wage by 6% from July 1, 2022

Implementing the provisions of Article 91 of the Labor Code, the Ministry of Labor, War Invalids and Social Affairs (LOL-Invalids and Social Affairs) on May 20 sent a written request for comments from ministries, branches and localities on a draft report. and the Government’s Decree stipulating the level of minimum wage for employees working under labor contracts

In the draft report, the Ministry of Labor, War Invalids and Social Affairs proposed to regulate the minimum monthly wages in 4 regions: Region I is 4,680,000 VND/month; Region II is 4,160,000 VND/month; Region III is 3,640,000 VND/month and region IV is 3,250,000 VND/month.

The Ministry of Labour, Invalids and Social Affairs proposed the time to determine the time to implement the minimum wage from July 1, 2022 as the National Wage Council recommended to the Government.

The above-mentioned minimum salary increases by 6% on average (corresponding to an increase of VND 180,000 – VND 260,000) compared to the current minimum wage.

According to the Ministry of Labour, Invalids and Social Affairs, the determination of the above-mentioned minimum wage adjustment is based on an increase of 5.3% to ensure the minimum living standards of employees and their families and an increase of 0.7 % to further improve wages for employees. This adjustment includes the sharing and harmonization of the interests of employees and businesses, while paying attention to improving the lives of workers and ensuring the maintenance, restoration and development of production. business of the enterprise. 100% of the members of the National Wage Council agree and recommend to the Government to adjust this level.

Regarding the hourly minimum wage, the minimum hourly wages are regulated in four regions: Region I is 22,500 VND/hour, Region II is 20,000 VND/hour, Region III is 17,500 VND/hour, Region IV is 15,600 VND/hour . According to the Ministry of Labour, War Invalids and Social Affairs, this is a new type of minimum wage prescribed to implement the provisions of the Labor Code 2019.

The hourly minimum wages are determined based on the equivalent conversion method from the monthly minimum wage and standard working time as prescribed by the Labor Code.

The application of the above equivalence conversion method is suitable for the specific conditions in our country when the minimum hourly wage is first regulated, avoiding creating a disturbance in the payment of wages for employees, affecting the negative impact on the state of labor relations in the enterprise. This is the way to determine the minimum hourly wage, which is commonly applied in many countries around the world and is recommended by ILO experts for Vietnam to apply.