Decree 38/2022/ND-CP – Prescribing statutory minimum wages paid to employees working under employment contracts

On June 12, 2022, the Government of Vietnam issued Decree 38/2022/ND-CP on the prescribed monthly minimum wage and the hourly minimum wage for employees working under employment contracts. This Decree takes effect from July 1, 2022 and supersedes the previous Decree 90/2019/ND-CP.

 Accordingly, starting from July 1, 2022, the region-based statutory minimum wages per month and per hour paid to employees are provided for as follows:

• Region I:    Statutory minimum wages per month is 4.680.000 VNĐ; Statutory minimum wages per hour is 22.500 VNĐ
• Region II:   Statutory minimum wages per month is 4.160.000 VNĐ; Statutory minimum wages per hour is 20.000 VNĐ 
• Region III:  Statutory minimum wages per month is 3.640.000 VNĐ; Statutory minimum wages per hour is 17.500VNĐ
• Region IV:  Statutory minimum wages per month is 3.250.000 VNĐ; Statutory minimum wages per hour is 15.600 VNĐ

Note that Decree 38/2022/ND-CP still preserves the current regulations on how to apply the minimum wage, such as:

- In the case of a business standing between neighboring areas with different minimum wages, the highest minimum wage must be paid.

- Businesses are prohibited from abolishing or cutting overtime, night shifts, hardships, toxic wages and allowances, etc., when applying a new minimum wage to employees.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.