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blue-check Some issues relating to minimum wage levels applicable from July 1st, 2022

Official letter No. 2086/BLDTBXH-TLDLDVN dated June 17th, 2022 of the Ministry of Labour - Invalids and Social Affairs regarding directions for deployment of Decree No. 38/2022/ND-CP on minimum wage levels
Posted: 20/6/2022 7:01:13 AM | Latest updated: 26/6/2022 9:07:30 AM (GMT+7) | LuatVietnam: 5476 | Vietlaw: 565
VietlawOnline

Relating to the application of new minimum wage levels from July 1st, 2022 under Decree No. 38/2022/ND-CP, the Ministry of Labour - Invalids and Social Affairs notes that contents already agreed in labor contracts, collective labor agreements or other lawful agreements that provide more benefits for laborers than those regulated in Decree No. 38/2022/ND-CP, including the addition of 7% to the minimum wage levels with regard to jobs requiring the labourers having undergone vocational training, must be further implemented, otherwise they are agreed by the parties.

In addition, from July 1st, 2022, Decree No. 38/2022/ND-CP regulates 2 types of minimum wage, including minimum monthly wage and minimum hourly wage. The minimum monthly salary applies to labourers that are paid on a monthly basis; the minimum hourly wage applies to labourers that are paid based on working hours.

For labourers that are receiving pay according to other forms (weekly or daily wage, a piece-rate pay or a fixed pay) Decree No. 38/2022/ND-CP does not require to change payment forms to hour-based form or month -based wage. Instead, enterprises may convert the wage they are paying into hourly wage or monthly wage to define whether their pay rates are higher than the minimum wage levels or not.

Ms Phuong Thao (VietlawOnline.com)
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Published Vietlaw's Newsletter No. 565

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