What is the hourly minimum wage and how does the weekly pay work?

Hoang Huong July 25, 2023 15:33

(Baonghean.vn) - What is the minimum hourly wage? For employees who are paid weekly, daily, piecework or piecework, will the wages of these forms of payment, if converted to monthly or hourly, be lower than the minimum monthly wage?

Le Thi Hoa (Nghi Lien Packaging Company)

Reply:

Regarding the application of the minimum wage stipulated in Article 4 of Decree 38/2022/ND-CP as follows:

Apply minimum wage

1. The minimum monthly wage is the lowest wage used as a basis for negotiation and payment of wages to employees applying the monthly wage payment method, ensuring that the wage according to the job or position of the employee who works enough normal working hours in the month and completes the agreed labor norms or work must not be lower than the minimum monthly wage.

2. The minimum hourly wage is the lowest wage used as a basis for negotiation and payment of wages to employees applying the hourly wage payment method, ensuring that the wage according to the job or position of the employee working in one hour and completing the agreed labor norm or work must not be lower than the minimum hourly wage.

bna_Công nhân làm việc tại Nhà máy của một doanh nghiệp FDI Hàn Quốc đầu tư vào Nghệ An. Ảnh Thành Duy.JPG
Workers work at a factory of a Korean FDI enterprise investing in Nghe An. Photo courtesy of Thanh Duy

3. ForworkerIf the form of payment is applied by week or by day or by product or by piecework, the salary of these forms of payment, if converted to monthly or hourly, must not be lower than the minimum monthly salary or minimum hourly salary. The salary converted to monthly or hourly based on normal working hours is chosen by the employer according to the provisions of labor law as follows:

a) The converted monthly salary is equal to the weekly salary multiplied by 52 weeks divided by 12 months; or the daily salary multiplied by the number of normal working days in a month; or the product-based salary, piecework salary performed during normal working hours in a month.

b) Hourly salary is converted by weekly or daily salary divided by normal working hours per week or day; or by product salary or contract salary divided by normal working hours to produce products or perform contract tasks.

Thus, for employees who are paid weekly, the salary, if converted to monthly or hourly, must not be lower than the minimum monthly wage or minimum hourly wage. The salary converted to monthly or hourly based on normal working hours is chosen by the employer according to the provisions of the labor law as follows:

- The converted monthly salary is equal to the weekly salary multiplied by 52 weeks divided by 12 months.

- Hourly wage conversion is equal to weekly wage divided by the number of normal working hours per week.

LEGAL POLICY DEPARTMENT - LABOR RELATIONS

NGHE AN PROVINCE LABOR FEDERATION

(Tel: 09 1974 2006; 0375 037 037)

Hoang Huong