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Starting from July 2024, Vietnam will implement a series of important wage policy reforms aimed at improving the livelihoods of workers and pensioners. According to a resolution passed by the National Assembly, the basic and minimum wages will be increased, bringing significant changes for millions of people.
Increasing Basic Wage from VND 1.8 Million to VND 2.34 Million
In a resolution passed on the morning of June 29, the National Assembly agreed to wage reforms, increasing the basic wage from July 1. The National Assembly also agreed to a 15% increase in current pensions and social insurance benefits. Pensioners before 1995, if after adjustment receive less than VND 3.2 million per month, will see an increase of VND 300,000 per month; those receiving from VND 3.2 to under VND 3.5 million per month will have their pension adjusted to VND 3.5 million per month.
Additionally, the preferential allowance for people with meritorious service will increase by 35.7%, from VND 2.055 million to VND 2.789 million per month. The social assistance standard will increase by 38.9%, from VND 360,000 to VND 500,000 per month. The regional minimum wage will increase by an average of 6% starting from July 1.
Monthly Wages for Enterprise Workers Increase by 6%
On June 30, the government issued Decree 74 to increase the monthly and hourly minimum wage by 6%, based on a proposal from the Ministry of Labor, Invalids, and Social Affairs. This increase is seen as “harmonious between enterprises and workers, fundamentally ensuring the minimum living standards by 2025”.
The monthly minimum wage for Region 1 will rise to VND 4.96 million; Region 2 to VND 4.41 million; Region 3 to VND 3.86 million; and Region 4 to VND 3.45 million. The current wages in these regions range from VND 3.25 to VND 4.68 million.
The hourly minimum wage will also increase by 6%, ranging from VND 16,600 to VND 23,800. Specifically, Region 1 will rise to VND 23.800; Region 2 to VND 21,200; Region 3 to VND 18,600; and Region 4 to VND 16,600. The current range is from VND 15,600 to VND 22,500.
The government mandates that workers paid by the week, day, or product must not receive less than the monthly or hourly minimum wage. Employers are responsible for reviewing the wage payment terms in labor contracts and collective agreements to make appropriate adjustments.
Other Adjustments
- Basic Wage in the Public Sector: Increases by 30%, from VND 1.8 million to VND 2.34 million per month from July 1.
- Pensions: Increase by 15% from July 1.
- Meritorious Service Allowance: Increases by 35.7%, from VND 2.055 million to VND 2.789 million.
- Social Assistance Standard: Increases by 38.9%, from VND 360,000 to VND 500,000 per month from July 1.
Additionally, the difference between the June 2024 salary and the increased income from July 1 for officials, civil servants, and public employees will be preserved after the financial and income mechanisms of agencies are revised or abolished before December 31, 2024.
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