Hanoi (VNA) - A new decree raising the regional minimum wage forlabourers was approved on June 12 by Deputy Prime Minister Pham Binh Minh.
The new regulation, coded 38/2022/ND-CP will come into effect on July 1.
The 6 percent increase is equivalent to a rise of 260,000 VND (11.20 USD) inRegion 1, and 240,000 VND, 210,000 VND, and 180,000 VND in Regions 2, 3, and 4,respectively.
The document also specifies that the minimum hourly wage will range from 15,600to 22,500 VND (0.70-1 USD), which also depends on the region.
The geographical classification is determined based on the employer’s place ofoperation.
Region 1 covers Hanoi and Ho Chi Minh City's urban areas; Region 2 encompasses Hanoiand HCM City's rural areas, along with major urban areas in the country like CanTho, Da Nang and Hai Phong; Region 3 covers provincial cities and the districtsof Bac Ninh, Bac Giang and Hai Duong provinces; and Region 4 comprises the restof the country.
The change is applicable to workers and employers under labour contracts inaccordance with the Labour Code.
The resolution also defines minimum wage as the lowest amount that can be paidto an employee, which is the basis for negotiation and compensation, in theform of a monthly salary. This amount corresponds to the workload and job titlein designated work hours, given that the employee fulfils their tasks asassigned.
For workers who are paid on a daily or weekly basis, or based on a piece rate,then their salary, when converted to the monthly or hourly rate, must not belower than the minimum wage./.
The Ministry of Labour, Invalids and Social Affairs (MoLISA) is collecting ideas on a draft proposal to the Government in which the National Wage Council suggests it not raise the region-based minimum wage in 2021 after considering the socio-economic circumstances.
As the Ministry of Labour, Invalids and Social Affairs has been gathering comments on a draft on the minimum wage, insiders said the proposed wages are insufficient to make ends meet.
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Illustrative image (Source: VNA) 
