will trained Vietnamese employees still receive a 7% incentive on minimum wage in 2023, Vietnamese employees receive a 7% incentive on minimum wage in 2023, Vietnamese employees receive incentive on minimum wage in 2023, minimum wage of Vietnamese employees in 2023,

Will trained Vietnamese employees still receive a 7% incentive on minimum wage in 2023?

With the promulgation of Decree 38/2022/ND-CP changing the minimum wage of Vietnamese employees from July 2022, there are still many businesses and trained employees wondering whether this major change in the minimum wage affect the required 7% increase in the minimum wage for trained employees?

Article 3 of Decree 38/2022/ND-CP stipulating monthly and hourly minimum wages for employees working for regional employers, effective from July 1, 2022. Specifically, the regional and hourly minimum wages are as follows:

– Region I: 4,680,000 VND/month (22,500 VND/hour)

– Region II: 4,160,000 VND/month (20,000 VND/hour)

– Region III: 3,640,000 VND/month (17,500 VND/hour)

– Region IV: 3,250,000 VND/month (15,600 VND/hour)

The minimum wage is adjusted every year, except for 2021 and the first half of 2022 due to the impact of the Covid-19 pandemic. Currently, there is no regulation on the increase of the minimum wage in 2023. However, from July 1, 2023, the base salary in Vietnam will increase from 1.49 million VND/month to 1.8 million VND/month.

Will trained Vietnamese employees still receive a 7% incentive on minimum wage in 2023?

Clause 1, Article 5 of Decree No. 90/2019/ND-CP stipulating the regional minimum wage for employees working under labor contracts, regulating that the regional minimum wage is the lowest level as a basis for businesses and employees to negotiate and pay wages.

In particular, the salary paid to employees working under normal working conditions, ensuring enough normal working hours in a month and completing agreed labor norms or jobs must ensure:

a) Not lower than the regional minimum wage for employees doing the simplest jobs;

b) At least 7% higher than the regional minimum wage for employees who do jobs requiring employees who have undergone vocational training.

Decree 90/2019/ND-CP (“Decree 90”) takes effect from January 1, 2020. Currently, Decree 90 is still in full force and effect, without any replacement, adjustment or supplemental documents.

Thereby, from July 1, 2022, Vietnamese employees working at the old minimum wage rate who have undergone vocational training as prescribed in Clause 2, Article 5 of Decree 90 will be increased to the new minimum wage of plus 7%.

For example, the minimum wage in Region I is 4,680,000 VND/month. The minimum wage of trained employees in Region I will be 4,680,000 x 107% = 5,007,600 VND.

ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.

    CONTACT

    Your infomation


    ***Other service of ASL LAW – full service Vietnam law firm ***  
    Retainer service to enterprises International trademark registration
    Oversea investment consultancy for Vietnamese enterprises Patent in Vietnam
    PCT Patent in Vietnam PCT Patent Vietnam Entry
    Intellectual property services (Vietnam IP Firm) Vietnam Patent Agent
    Trademark in Vietnam Vietnam Patent Firm
    Vietnam Trademark Agent Patent translation in Vietnam
    How to register trademark in Vietnam Vietnam Patent Translation Agent
    Copyright in Vietnam Vietnam IP Firm
    Vietnam Trademark Vietnam IP Agent
    Notes to company formation in Vietnam M&A
    How to open company in Vietnam Banking & financial services
    Open representative office in Vietnam Contract consultancy
    Establish company in Vietnam Employment and labor
    Corporate services in Vietnam Litigation and dispute resolution
    Vietnam Law Firm Franchise in Vietnam
    Vietnam Antidumping Law Firm Vietnam Franchise registration
    Vietnam countervailing law firm Vietnam Business Law Firm
    Vietnam Real estate law firm Vietnam construction law firm
    Law firm in Hanoi Law Firm in Ho Chi Minh
    Debt collection in Vietnam Debt recovery law firm in Vietnam
    Debt collection law firm in Vietnam Vietnam Debt Collection law firm
    ASEAN IP Agent ASEAN IP FIRM
    IP agent in ASEAN Establish R.O in Vietnam
    Setting up a foreign-invested company Setup foreign company in Vietnam
    Technology Transfer in Vietnam Technology Transfer services
    Labour law in Vietnam Employment law in vietnam
    Vietnam franchise law firm International trademark registration
    Contact Me on Zalo
    +84982682122
    WhatsApp chat