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The Ministry of Labour, Invalids and Social Affairs first proposed the regional minimum wage by hour

This is the latest information that has just been released by the Ministry of Labour, Invalids and Social Affairs in a report submitted to the Government for consideration and promulgation of a Draft Decree regulating the minimum wage for employees.

In 2019, the Government issued Decree No. 90 stipulating minimum wages by region and by month for employees working under labor contracts, effective from January 1, 2020.

Normally, the level Region minimum wage reviewed and adjusted after 1 year of implementation. However, since the beginning of 2020, the Covid-19 pandemic has had a negative impact on economic development, making the lives of workers difficult. So, Regional minimum wage The provisions of Decree No. 90 (the current minimum wage has been maintained for more than 2 years, as recommended by the National Wage Council – PV) is no longer appropriate and needs to be adjusted.

hour zone minimum wage

In addition to the regional minimum wage, the Ministry of Labour, Invalids and Social Affairs proposes to issue Regional minimum wage hourly. Photo: NT

In fact, the monthly minimum wage set by the Government is currently mainly applied to workers in stable jobs in the formal sector.

For employees who do flexible jobs, work part-time for households and small businesses (such as restaurants, supermarkets, coffee shops, etc.) The use of the monthly minimum wage as a basis for agreement, daily, hourly and weekly wages for employees is rigid, lacks a basis for flexible application, affecting the interests of employees. labor.

Therefore, in addition to the monthly minimum wage, it is necessary to establish an hourly minimum wage to expand coverage and increase the protection of minimum wages for groups of workers engaged in flexible work, part-time according to the provisions of the Labor Code.

“Currently, the Covid-19 epidemic has been basically controlled, the socio-economic situation of Vietnam has been improving, but the lives of many workers are still seriously affected. promulgating an adjustment decree minimum monthly salary and the regulation of the minimum wage is now considered a way to help stabilize labor relations, create momentum to restore production, business and development”, the draft decree cited.

The draft Decree specifies the minimum monthly salary for 4 regions as follows: Region I is 4,680,000 VND/month, Region II is 4,160,000 VND/month, Region III is 3,640,000 VND/month, Region IV is 3,250,000 VND/month.

Article 91 of the Labor Code stipulates that the minimum wage is set by region, set by month and hour; The government regulates and publishes the minimum wage on the basis of the recommendation of the National Wage Council. Therefore, in addition to the monthly minimum wage, the Government needs to have specific regulations on the hourly minimum wage.

“The above-mentioned minimum wage has increased by an average of 6% (corresponding to an increase of VND 180,000 – VND 260,000) compared to the current minimum salary. The determination of the above minimum wage adjustment is based on an increase of 5, 3% to ensure the minimum living standard of workers and their families and increase by 0.7% to further improve wages for workers”, the draft emphasized.

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.

Regional minimum wage hourly minimum is 15,600 VND/hour

Regarding the minimum hourly wage, the Draft Decree prescribes the hourly minimum wage according to 4 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.

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 time. standard work according to the provisions of the Labor Code.

hourly minimum wage

The minimum hourly wage applied to self-employed workers is the highest at 22,500 VND/hour in Region I and 15,600 VND in Region IV. Photo: NT

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.

The draft Decree also monthly minimum wage regulations applied to employees who pay monthly salary; Minimum hourly wages apply to hourly wage workers.

For other forms of salary payment (weekly or daily or by product or package salary), the enterprise shall choose to convert it to a guaranteed monthly or hourly wage that is not lower than the monthly minimum wage or the minimum wage. hours (do not require enterprises to change the form of salary payment, but only convert to monthly or hourly wages to compare and verify compliance with the minimum wage prescribed by the Government).

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