Decree No. 74/2024/ND-CP stipulates the minimum wage for workers under labor contracts.

DECREE

Prescribing 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 issues this Decree stipulates the minimum wage level for workers under labor contracts.

Article 1. Scope of application

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) Organizations, cooperatives, households, individuals that hire or use workers to work for themselves according to agreements; in cases where the employer is an individual, they must have full capacity for civil acts.

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

Article 3. Minimum wage level

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 specified 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 wage levels shall apply the minimum wage level corresponding to the area where their 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 areas where there has been a change in name or administrative division shall temporarily apply the minimum wage level of the area before the name change or administrative division until the Government issues new regulations.

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

Article 4. Application of the Minimum Wage

1. The monthly minimum wage is the lowest wage level serving as the basis for negotiating and paying wages to workers who are paid on a monthly basis, ensuring that the wage for the job or position of the worker working the normal working hours in a month and completing the agreed production quota or task is not lower than the monthly minimum wage.

2. The hourly minimum wage is the lowest wage level serving as the basis for negotiating and paying 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 task is not lower than 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 monthly or hourly rates, must not be lower than the monthly minimum wage or the hourly minimum wage. The converted monthly or hourly rate 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 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 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, 2024.

2. Decree No. 38/2022/NĐ-CP dated June 12, 2022, of the Government stipulating the minimum wage level for workers under labor contracts ceases to be effective from July 1, 2024.

3. When implementing the minimum wage level stipulated in this Decree, employers are responsible for reviewing the wage systems agreed upon in labor contracts with workers, collective labor agreements, and internal regulations of the employer to adjust and supplement them accordingly. For wage contents already agreed upon or committed to that are more beneficial to workers (such as wage systems for workers performing jobs or positions requiring higher vocational training, at least 7% higher than the minimum wage, and wage systems for workers performing jobs or positions with harsher working conditions, at least 5% higher than the minimum wage; jobs or positions with extremely harsh working conditions, at least 7% higher than the wage of jobs or positions with equivalent complexity, working under normal working conditions), such provisions shall continue to be implemented unless the parties agree otherwise. Employers may not eliminate or reduce wage benefits for overtime work, night work, in-kind allowances, and other benefits stipulated by labor laws. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees, and employers are responsible for enforcing this Decree.

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