Preparing a plan to increase the regional minimum wage in 2025.

The Ministry of Labour, Invalids and Social Affairs has recently sent a document to localities requesting a review of areas where minimum wage levels are applied.

The Ministry of Labour, Invalids and Social Affairs announced that on June 30, 2024, the Government issued Decree No. 74/2024/ND-CP stipulating the minimum wage for employees working under labor contracts, in which the minimum wage is divided by region (associated with district-level administrative areas).

Recently, many provinces and centrally-governed cities have adjusted their district-level administrative boundaries (renaming, establishing new districts, merging, dissolving, and adjusting administrative boundaries) in accordance with resolutions of the National Assembly Standing Committee.

Therefore, in order to update the areas to which the minimum wage applies and prepare a proposal to the Government regarding the adjustment of the minimum wage as stipulated in Article 91 of the Labor Code, the Ministry of Labor, War Invalids and Social Affairs requests the Chairmen of the People's Committees of provinces and centrally-administered cities to direct local labor management agencies to coordinate with relevant departments and sectors to review the areas of application.

Accordingly, localities should review and update the names of areas where minimum wage levels apply, especially administrative units at the district level that have undergone reorganization, such as renaming, new establishment, merger, dissolution, or adjustment of administrative boundaries according to resolutions of the National Assembly Standing Committee from July 1, 2024 to the present.

Simultaneously, assess and propose adjustments to the current zoning plan. If adjustments to the zoning plan are proposed, the local state labor management agency, in coordination with the Export Processing Zone/Industrial Park Management Board, shall exchange information in writing with the Provincial Labor Federation, the Provincial and Regional Branches of the Vietnam Confederation of Trade and Industry, professional associations, investors, and businesses in the area.

Based on that, the report is submitted to the People's Committees of provinces and centrally-administered cities for their comments to the Ministry of Labor, War Invalids and Social Affairs.

According to Decree No. 74/2024/ND-CP, the Government has adjusted the minimum wage by an average of 6%, effective from July 1, 2024. After the adjustment, the monthly minimum wage in Region I is 4.96 million VND, Region II is 4.41 million VND, Region III is 3.86 million VND, and Region IV is 3.45 million VND.

The minimum hourly wage also increased accordingly, reaching 23,800 VND/hour in Region I, 21,200 VND/hour in Region II, 18,600 VND/hour in Region III, and 16,600 VND/hour in Region IV.

To prepare the groundwork for adjusting the minimum wage in 2025, the Ministry of Labour, Invalids and Social Affairs conducted a 2024 survey on wages and labor at 3,400 enterprises, involving 6,800 workers in 18 provinces and cities.

The results of the survey will be used for management purposes, publishing the average wage level in the labor market for businesses and workers to refer to as a basis for wage negotiations.