Vietnam minimum wage to rise next month
Vietnam’s minimum wage will go up 6 percent starting July 1, two years after remaining unchanged.
The increase was announced in a government’s decree Sunday, marking the first time since 2009 that the minimum wage increase takes effect in the middle of the year instead of the beginning of the year as has happened in previous years.
The increase in pay has been estimated at VND180,000-260,000 per month per worker, depending on four salary regions specified by the government.
It means the new minimum salary will range from VND3.25 million to VND4.68 million ($140.19-201.88) a month.
The policy applies to employees that are paid monthly and hourly.
The monthly minimum wage as regulated by the government is the lowest level for businesses to use as a basis for negotiating and paying wages to employees. Businesses cannot apply a salary level lower than this.
For other salary types, such as those that are paid weekly, daily or paid in line with productivity, employers can choose to convert it to a monthly or hourly salary, but they have to ensure that the payment will not be lower than the minimum monthly wage as per the new decree.
By Anh Minh & Hoang Phuong – VnExpress.net – June 12, 2022