Vietnam to implement regional minimum wage hike

Taking effect on July 1, the wage adjustments will be determined by the region in which companies operate in.
By: | June 15, 2022
Topics: Compensation and Benefits | Employee Experience | News | Vietnam

Vietnam’s minimum wage hike will take effect on July 1, with workers in different regions receiving different wage adjustments depending on their employer’s place of operation.

Workers in Region 1 will be able to enjoy a 6% increase of  VND260,000 (US$11.2), while workers in Regions 2, 3, and 4 will receive a hike of  VND40,000 (US$1.72),  VND210,000 (US$9.05), and VND180,000 (US$7.75) respectively. 

Region 1 covers Hanoi and Ho Chi Minh City’s urban areas; Region 2 covers Hanoi and HCM City’s rural areas, along with major urban areas in the country like Can Tho, Da Nang and Hai Phong; Region 3 covers provincial cities and the districts of Bac Ninh, Bac Giang and Hai Duong provinces; and Region 4 comprises the rest of the country.

READ: Vietnam to keep electronic records of employees

The wage decree was approved on June 12 by Deputy Prime Minister Pham Binh Minh, according to VNA news. Under the regulation, workers who are paid on a daily or weekly basis and receive their wages on a monthly or hourly rate must earn at least the stipulated minimum wage.