The government has issued Decree No. 128 on regulations regarding the decentralization of state management in the field of internal affairs.
As part of this decree, the government has published a list of communal-level administrative units that will be subject to minimum wage regulations, applicable to employees working under labor contracts from July 1st onwards.
The minimum wage is the lowest remuneration that employers must pay their employees for the work performed during their working hours under normal conditions, ensuring a minimum standard of living for the workers and their families, taking into account socio-economic development.
Currently, the government has set the minimum wage for employees working under labor contracts as per Decree No. 74/2024, effective from July 1, 2024, until the present.
Accordingly, the monthly regional minimum wages are as follows: Region I: 4,960,000 VND/month, Region II: 4,410,000 VND/month, Region III: 3,860,000 VND/month, and Region IV: 3,450,000 VND/month. The hourly minimum wages are: Region I: 23,800 VND/hour, Region II: 21,200 VND/hour, Region III: 18,600 VND/hour, and Region IV: 16,600 VND/hour.
The list of communal-level administrative units subject to these regional minimum wages will clearly define which units fall under each region, serving as a basis for determining the applicable minimum wage.
In cases where the new wage is lower than the previously applicable minimum wage (as per regulations before July 1st), employers must continue to apply the minimum wage based on the district-level administrative unit until the government issues new regulations.
A Proposal for Regional Minimum Wage Increase from July
The representative cited that since 2023, electricity prices have surged four times, amounting to a 17% increase, while the minimum wage for workers has only been adjusted once, with a mere 6% increment. The proposal urges an immediate review and adjustment of the regional minimum wage, effective from July onwards. This is deemed a pressing necessity to address the practical needs of the working population.
The Rising Cost of Electricity: A 400% Hike While Minimum Wages Lag Behind
“As of 2023, electricity prices have surged by 17% with four price hikes, while the minimum wage for workers has only seen a single 6% increase. This disparity between the rising cost of living and stagnant wages is a pressing issue that demands attention.”
What Minimum Wage Region Do Ho Chi Minh City Workers Fall Under Post-Merger?
The minimum wage for rural areas will remain at the previously applied rate if it was higher than the rate effective from July 1st.
“A Streamlined Administrative System: Empowering Vietnam’s Progress”
With a unanimous approval rating, the National Assembly’s Standing Committee has passed in principle 34 resolutions on the rearrangement of communal-level administrative units for the year 2025. These resolutions, pertaining to 34 provinces and centrally-run cities post-merger, signify a pivotal step forward in administrative reform.
Proposed Minimum Wage for the Merged Province-City Region
The Ministry of Home Affairs has compiled a list of commune-level areas that will be subject to the new regional minimum wage framework, as outlined in Government Decree No. 74/2024. This follows the recent merger of provincial and communal administrative units, with the ministry delineating four distinct regions for this purpose.
