Vietnam Minimum Wage: Updated Salary Policy

Statutory Minimum Wage per Month

There has been an increase of the statutory minimum wage per month in Vietnam [1].

On 12 June 2022, the Government issued a new order (Decree 38/2022/ND-CP) prescribing statutory minimum wages paid to employees working under labour contracts. Accordingly, the statutory minimum wage per month has increased by an average of 6% (from VND 180,000/month to VND 260,000/month).

Specifically:

In addition, the requirement for skilled workers to be paid a wage 7% higher than the regional minimum wage has been abolished.

The new salary policy states that skilled workers, who previously received higher than the minimum wage [2] can no longer expect this, unless previously specified in the labour contracts, collective bargaining agreements, or other legal agreements.

Statutory Minimum Wage per Hour

The statutory minimum wage per hour is defined as the lowest hourly wage paid to an employee. This is regarded as a basis to ensure that the salary of an employee who works for one hour, and completes the agreed upon labour or work norm, is not lower than the minimum hourly wage [3].

In Vietnam, the statutory minimum wage per hour is specified as follows [4]:

Further information please contact:

Vu Manh Quynh, Managing Partner, ECOVIS Vietnam OC Law
Email: quynh.vu@ecovislaw.vn

[1] Clause 1 Article 3 Decree 38/2022/ND-CP

[2] Point b Clause 1 Article 5 Decree 90/2019/ND-CP

[3] Clause 2 Article 4 Decree 38/2020/ND-CP

[4] Clause 1 Article 3 Decree 38/2022/ND-CP