Decree No. 38/2022/NĐ-CP on the minimum wage for workers under labor contracts

DECREE
Regulations on the minimum wage for workers under labor contracts

                                                                                

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Labor Code on November 20, 2019;

Decree No. 07/2021/NĐ-CP

The Government promulgates this Decree prescribing the minimum monthly wage and the minimum hourly wage applicable to workers under labor contracts.

Article 1. Scope of Regulation

This Decree prescribes the minimum monthly wage and the minimum hourly wage applicable to workers under labor contracts.

Article 2. Applicability

1. Workers working under labor contracts as prescribed by the Labor Code.

2. Employers as prescribed by the Labor Code, including:

a) Enterprises as prescribed by the Enterprise Law.

b) Agencies, organizations, cooperatives, households, individuals hiring workers to work for themselves through agreements.

3. Other agencies, organizations, and individuals related to the implementation of the minimum wage prescribed in this Decree.

Article 3. Minimum Wage

1. The monthly minimum wage and hourly minimum wage levels for workers working for employers according to regions are as follows:

2. The list of areas in Region I, Region II, Region III, and Region IV is prescribed in the Appendix attached to this Decree.

3. The application of regional areas is determined based on the operating location of the employer as follows:

a) If the employer operates in an area belonging to a certain region, then the minimum wage prescribed for that area shall be applied.

b) Employers with units or branches operating in areas with different minimum wages shall apply the minimum wage prescribed for the area where the unit or branch operates.

c) Employers operating within industrial zones or export processing zones located in areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage.

d) Employers operating in an area that has undergone a name change or division shall temporarily apply the minimum wage prescribed for the area before the name change or division until the Government issues new regulations.

đ) Employers operating in a newly established area formed from one or more areas with different minimum wages shall apply the minimum wage of the area with the highest minimum wage.

e) Employers operating in a provincial-level city that is newly established from one or more areas belonging to Region IV shall apply the minimum wage prescribed for the remaining provincial-level city according to Clause 3 of the Appendix attached to this Decree.

Article 4. Application of the Minimum Wage

1. The monthly minimum wage is the lowest wage level serving as the basis for negotiation and payment of wages to workers who are paid on a monthly basis, ensuring that the wage for the job or position of the worker working the full normal working hours in a month and completing the agreed production quota or work does not fall below the monthly minimum wage.

2. The hourly minimum wage is the lowest wage level serving as the basis for negotiation and payment of wages to workers who are paid on an hourly basis, ensuring that the wage for the job or position of the worker working for one hour and completing the agreed production quota or work does not fall below the hourly minimum wage.

3. For workers who are paid on a weekly, daily, piece-rate, or lump-sum basis, the wage levels of these payment methods, when converted to a monthly or hourly basis, must not be lower than the monthly minimum wage or the hourly minimum wage. The converted monthly or hourly wage is based on the normal working hours chosen by the employer in accordance with labor laws as follows:

a) The monthly converted wage equals the weekly wage multiplied by 52 weeks divided by 12 months; or the daily wage multiplied by the number of normal working days in a month; or the piece-rate wage or lump-sum wage performed during the normal working hours in a month.

b) The hourly converted wage equals the weekly or daily wage divided by the number of normal working hours in a week or day; or the piece-rate wage or lump-sum wage divided by the number of hours worked during the normal working hours to produce the product or complete the assigned task.

Article 5. Effectiveness and Responsibility for Implementation

1. This Decree takes effect from July 1, 2022.

2. Decree No. 90/2019/NĐ-CP dated November 15, 2019 of the Government prescribing the regional minimum wage for workers under labor contracts ceases to be effective from the date this Decree takes effect.

3. Employers are responsible for organizing a review of agreements in labor contracts, collective labor agreements, and internal regulations to adjust and supplement them to comply with this Decree; they may not eliminate or reduce wage benefits for overtime work, night work, in-kind allowances, and other benefits stipulated by labor laws. For contents already agreed upon in labor contracts, collective labor agreements, or other lawful agreements that are more favorable to workers than those prescribed in this Decree, such provisions shall continue to be implemented unless the parties agree otherwise. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees, and employers are responsible for implementing this Decree.

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees, and employers are responsible for implementing this Decree./.

                                         APPENDIX                                                     

LIST OF AREAS APPLYING THE MINIMUM WAGE FROM JULY 1, 2022

(Attached to Decree No.: 38/2022/NĐ-CP June 12, 2022 of the Government                                                             

1. Region I, including the following areas:

- Districts and counties Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thanh Xuan, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, Chuong My, and Son Tay town in Hanoi city;

- Ha Long city in Quang Ninh province;

- Districts and counties Thuy Nguyen, An Duong, An Lao, Vinh Bao, Tien Lang, Cat Hai, Kien Thuy in Hai Phong city;

- Districts, Thu Thiem New Town, and counties Cu Chi, Ho Chi Minh, Binh Chanh, Nha Be in Ho Chi Minh city;

- Cities Bien Hoa, Long Khanh, and counties Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom, Xuan Loc in Dong Nai province;

- Cities Thu Dau Mot, Thu An, Di An; towns Ben Cat, Tan Uyen, and counties Bau Bang, Bac Tan Uyen, Dau Tieng, Phu Giao in Binh Duong province;

- Vung Tau city and Phu My town in Ba Ria-Vung Tau province.

2. Region II, including the following areas:

- Remaining counties in Hanoi city;

- Remaining counties in Hai Phong city;

- Hai Duong city in Hai Duong province;

- City Hung Yen, My Hao town, and counties Van Lam, Van Giang, Yen My in Hung Yen province;

- The cities of Vinh Yen, Phuc Yen and the districts of Binh Xuyen, Yen Lac in the province of Vinh Phuc;

- The cities of Bac Ninh, Tu Son and the districts of Que Vo, Tien Du, Yen Phong, Thu Thuan, Gia Binh, Luong Tai in the province of Bac Ninh;

- The cities of Cam Pha, Uong Bi, Mong Cai and the towns of Quang Yen, Dong Trieu in the province of Quang Ninh;

- The cities of Thai Nguyen, Song Cong and Phu Yen in the province of Thai Nguyen;

- The city of Hoa Binh and the district of Luong Son in the province of Hoa Binh;

- The city of Viet Tri in the province of Phu Tho;

- The city of Lao Cai in the province of Lao Cai;

- The city of Nam Dinh and the district of My Loc in the province of Nam Dinh;

- The city of Ninh Binh in the province of Ninh Binh;

- The city of Vinh, the town of Cu Lo and the districts of Nghi Loc, Hung Nguen in the province of Nghe An;

- The city of Dong Hoi in the province of Quang Binh;

- The city of Hue in the province of Thua Thien Hue;

- The cities of Hoi An, Tam Ky in the province of Quang Nam;

- The districts under the city of Da Nang;

- The cities of Nha Trang, Cam Ran in the province of Khanh Hoa;

- The cities of Da Lat, Bao Loc in the province of Lam Dong;

- The city of Phan Thiet in the province of Binh Thuan;

- The district of Can Gio under the city of Ho Chi Minh;

- The city of Tay Ninh, the towns of Trang Bang, Hoa Thanh and the district of Go Dau in the province of Tay Ninh;

- The districts of Dinh Quan, Thong Nhat in the province of Dong Nai;

- The city of Dong Xoai and the districts of Chon Than, Dong Phu in the province of Binh Phuoc;

- The city of Ba Ria in the province of Ba Ria - Vung Tau;

- The city of Tan An and the districts of Duc Hoa, Ben Luc, Thu Thu, Can Doc, Can Gioc in the province of Long An;

- The city of My Tho and the district of Chau Thanh in the province of Tien Giang;

- The city of Ben Tre and the district of Chau Thanh in the province of Ben Tre;

- The city of Vinh Long and the town of Binh Minh in the province of Vinh Long;

- The districts under the city of Can Tho;

- The cities of Rach Gia, Ha Tien, Phu Quoc in the province of Kien Giang;

- The cities of Long Xuyen, Chau Doc in the province of An Giang;

- The city of Tra Vinh in the province of Tra Vinh;

- The city of Bac Lieu in the province of Bac Lieu;

- The city of Ca Mau in the province of Ca Mau.

3. Region III, including the following areas:

- The remaining provincial cities (excluding the provincial cities mentioned in Region I and Region II);

- The town of Kinh Mon and the districts of Cam Giang, Nam Sach, Kim Thanh, Gia Loc, Binh Giang, Tu Ky in the province of Hai Duong;

- The districts of Vinh Tuong, Tam Dao, Tam Duong, Lap Thach, Song Lo in the province of Vinh Phuc;

- The town of Phu Tho and the districts of Phu Nin, Lam Thao, Thanh Ba, Tam Nong in the province of Phu Tho;

- The districts of Viet Yen, Yen Dun, Hiep Hoa, Tan Yen, Lang Giang in the province of Bac Giang;

- The districts of Van Don, Hai Ha, Dam Ha, Tien Yen in the province of Quang Ninh;

- The town of Sa Pa and the district of Bao Thang in the province of Lao Cai;

- The remaining districts in the province of Hung Yen;

- The districts of Phu Binh, Phu Luong, Dong Hy, Dai Tu in the province of Thai Nguyen;

- The remaining districts in the province of Nam Dinh;

- The town of Duy Tien and the district of Kim Bang in the province of Ha Nam;

- The districts of Gia Vien, Yen Khanh, Hoa Lu in the province of Ninh Binh;

- The towns of Bim Son, Nghi Son and the districts of Dong Son, Quang Xuong in the province of Thanh Hoa;

- The districts of Quynh Lua, Yen Thanh, Dien Chau, Do Luong, Nam Dan, Nghia Dan and the towns of Thai Hoa, Hoang Mai in the province of Nghe An.

- The town of Ky Anh in the province of Ha Tinh;

- The towns of Huong Thuy, Huong Tra and the districts of Phu Loc, Phong Dien, Quang Dien, Phu Vang in the province of Thua Thien Hue;

- The town of Dien Ban and the districts of Dai Loc, Duy Xuyen, Nui Thanh, Que Son, Thang Binh, Phu Ninh in the province of Quang Nam;

- The districts of Binh Son, Son Tinh in the province of Quang Ngai;

- The towns of Song Cau, Dong Hoa in the province of Phu Yen;

- The districts of Ninh Hai, Thuan Bac in the province of Ninh Thuan;

- The town of Ninh Hoa and the districts of Cam Lam, Dian Khanh, Van Ninh in the province of Khanh Hoa;

- The district of Dak Ha in the province of Kon Tum;

- The districts of Duc Trong, Di Linh in the province of Lam Dong;

- The town of La Gi and the districts of Ham Thuong Bac, Ham Thuong Nam in the province of Binh Thuan;

- The towns of Phuoc Long, Binh Long and the districts of Hon Quan, Loc Ninh, Phu Rieng in the province of Binh Phuoc;

- The remaining districts in the province of Tay Ninh;

- The remaining districts in the province of Dong Nai;

- The districts of Long Dien, Dat Doc, Xuyen Moc, Chau Duc, Con Dao in the province of Ba Ria - Vung Tau;

- The town of Kien Tuong and the districts of Duc Hieu, Chau Thanh, Tan Tru, Thanh Hoa in the province of Long An;

- The towns of Go Cong, Cai Lay and the districts of Cho Gao, Tan Phuoc in the province of Tien Giang;

- The districts of Ba Tri, Binh Dai, Mo Cay Nam in the province of Ben Tre;

- The districts of Mang Thit, Long Ho in the province of Vinh Long;

- The districts under the city of Can Tho;

- The districts of Kien Luong, Kien Hai, Chau Thanh in the province of Kien Giang;

- The town of Tan Chau and the districts of Chau Pu, Chau Thanh, Thoai Son in the province of An Giang;

- The districts of Chau Thanh, Chau Thanh A in the province of Hau Giang;

- The town of Duyen Hai in the province of Tra Vinh;

- The town of Gia Rai and the district of Hoa Binh in the province of Bac Lieu;

- The towns of Vinh Chau, Ngia Nam in the province of Soc Trang;

- The districts of Nam Can, Cai Nuoc, U Minh, Tran Van Thoi in the province of Ca Mau;

- The districts of Le Thuy, Quang Ninh, Bo Trach, Quang Trach and the town of Ba Don in the province of Quang Binh.

 

4. Region IV, including the remaining areas./.