REGULATIONS ON THE APPLICATION OF STATUTORY MINIMUM WAGES AND CONTRIBUTION OF INSURANCES FROM 1/7/2022 FOR EMPLOYERS
- Employers shall review and make appropriate modifications to their agreements in employment contracts, collective bargaining agreements as well as other regulations and rules;
- Employers are not allowed to cut or reduce any overtime pay, nightshift pay, perquisites and other benefits paid to employees as prescribed by the Labour Code.
REGULATIONS ON THE LEVEL OF STATUTORY MINIMUM WAGES FROM 1/7/2022
The region-based statutory minimum wages per month and per hour paid to employees are provided for as follows:
|Minimum wages per month (VND/month)
|Minimum wages per hour (VND/hour)
Determination of a subregion as the basis for application of the statutory minimum wages shall be conducted based on the employer’s place of operation. To be specific:
- An employer located in a specific subregion shall apply the respective statutory minimum wage applied thereto.
- In the event that an employer has its affiliates and/or branches located in different subregions to which different statutory minimum wages apply, such affiliates and/or branches must apply the respective statutory minimum wages applied thereto.
- If an employer is located in an industrial park or export processing zone located in the territory containing two or more subregions to which different statutory minimum wages apply, the highest statutory minimum wage shall apply.
REGULATIONS ON THE APPLICATION OF STATUTORY MINIMUM WAGES FROM 1/7/2022
- The statutory minimum wage per month is the minimum wage used as the basis for any agreement between employers and employees on monthly salary and payment thereof. The job- or position-based salary of an employee who ensures the monthly normal working hours and has fulfilled his/her labor productivity norms or tasks as agreed shall not be lower than the statutory minimum wages per month.
- The statutory minimum wage per hour is the minimum wage used as the basis for any agreement between employers and employees on hourly salary and payment thereof. The job- or position-based salary paid for every working hour to an employee who has fulfilled his/her labor productivity norms or tasks as agreed shall not be lower than the statutory minimum wages per hour.
- In case an employee receives a weekly or daily salary, a piece-rate pay or a fixed pay, the wages paid to the employee, when converted into monthly or hourly salary, shall not be lower than the statutory minimum wage per month or hour. The normal working hours-based converted monthly or hourly salary shall be subjected to the employer’s decision in accordance with regulations of law. To be specific:
- The converted monthly salary shall equal the product of the weekly salary and 52 weeks divided by 12 months; or the daily salary multiplied by the total normal working days in a month; or the piece-rate pay or fixed pay for the works performed during normal working hours in a month.
- The converted hourly salary shall equal the weekly or daily salary divided by the normal working hours in a week or a day respectively; or the piece-rate pay or fixed pay divided by the working hours, considered as normal working hours, spent for producing a predetermined quantity of products or performing assigned works.
These regulations are from Decree No.: 38/2022/ND-CP June 12, 2022 comes into force from July 01, 2022
VIVA Business Consulting will apply and revise every labor contract, collective agreement, monthly payrolls, and wages for the contribution of insurances according to this new regulation from July 2022. Each amendment will be tailored process on case by case and time by time so that your enterprise can fully comply with local regulations in an optimal manner.
Please consult with us for any of your further query: firstname.lastname@example.org or hotline: 1800 1243
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