Regional minimum wage to increase starting in July

A new decree raising the regional minimum wage of 6 percent for laborers has just been approved by Deputy Prime Minister Pham Binh Minh. The new regulation will come into effect on July 1.

Accordingly, the 6-percent increase is equivalent to a rise ranging from 7.76 USD to 11.20 USD depending on the region. The document also specifies that the minimum hourly wage will range from 0.70-1 USD, which also depends on the region.

The geographical classification is determined based on the employer’s place of operation.

Region 1 covers Hanoi and Ho Chi Minh City's urban areas; Region 2 encompasses Hanoi and HCM City's rural areas, along with major urban areas in the country like Can Tho, Da Nang and Hai Phong; Region 3 covers provincial cities and the districts of Bac Ninh, Bac Giang and Hai Duong provinces; and Region 4 comprises the rest of the country.

The change is applicable to workers and employers under labour contracts in accordance with the Labour Code./.