Preparing a plan to increase regional minimum wages in 2025

The Ministry of Labor, War Invalids and Social Affairs has just sent a document to localities requesting a review of the areas applying the minimum wage.

The Ministry of Labor, War Invalids and Social Affairs said 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 (linked to district-level administrative areas).

Recently, many provinces and centrally-run cities have adjusted their administrative boundaries at the district level (renaming, establishing, merging, dissolving, and adjusting administrative boundaries) according to the Resolutions of the National Assembly Standing Committee.

Therefore, in order to update the areas where the minimum wage is applied and prepare a proposal to the Government on adjusting the minimum wage as prescribed 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 run cities to direct the State management agencies of labor in the localities to coordinate with relevant departments and branches to review the areas of application.

Accordingly, localities review and update the names of areas applying the minimum wage, especially district-level administrative units that have been reorganized, such as renaming, newly establishing, merging, dissolving, and adjusting administrative boundaries according to resolutions of the National Assembly Standing Committee from July 1, 2024 to present.

At the same time, evaluate and propose adjustments to current zoning. In case of proposed zoning adjustments, the local State labor management agency shall coordinate with the Export Processing Zone and Industrial Park Management Board to discuss in writing with the Provincial Labor Federation, the provincial and regional branches of the Vietnam Federation of Commerce and Industry, professional associations, investors and enterprises in the area.

On that basis, report to the People's Committees of provinces and centrally-run cities for comments to be sent 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 to increase by an average of 6%, effective from July 1, 2024. After 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, Region IV is 3.45 million VND.

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

To prepare the basis for adjusting the minimum wage in 2025, the Ministry of Labor, War Invalids and Social Affairs conducted a 2024 survey on wages and labor at 3,400 enterprises, with 6,800 employees working in 18 provinces and cities.

The results of the survey will serve management and announce the average salary level in the labor market for businesses and employees to refer to as a basis for salary negotiations.