6 benefits workers enjoy when regional minimum wage increases from July 1

When the minimum wage increases, in addition to the monthly salary increase, workers will receive a number of other benefits.

The Ministry of Labor, War Invalids and Social Affairs is proposing to draft a Decree regulating regional minimum wages, with a 6% increase, applicable from July 1.

Accordingly, the specific adjustment levels are as follows: Region I is 4,960,000 VND/month, Region II is 4,410,000 VND/month, Region III is 3,860,000 VND/month, Region IV is 3,450,000 VND/month.

6 quyền lợi người lao động được hưởng khi tăng lương tối thiểu vùng từ 1/7 ảnh 1

According to current legal regulations, when the minimum wage increases, in addition to the monthly salary increase, employees will receive increased benefits such as: Increased severance pay; Increased minimum wage when changing jobs; Increased social insurance contribution; Increased unemployment insurance contribution; Increased maximum unemployment benefit.

Specifically, Article 90 of the 2019 Labor Code stipulates that wages are the amount of money that employers pay to employees according to the agreement to perform work, including wages according to work or position, salary allowances and other supplements. Wages according to work or position must not be lower than the minimum wage. When adjusted to increase by 6%, the minimum wage will increase from VND 200,000 - VND 280,000 compared to the current minimum wage.

At the same time, employees will receive an increase in their severance pay according to Article 99 of the 2019 Labor Code. In case of having to stop working, if it is due to the employer's fault, the employee will be paid full salary according to the labor contract... with the severance pay not lower than the regional minimum wage.

When an employee changes to a job other than the one stated in the employment contract, he/she is paid according to the new job. If the salary of the new job is lower than the salary of the old job, the salary of the old job shall remain the same for a period of 30 working days. The salary of the new job must be at least 85% of the salary of the old job but not lower than the minimum wage.

When the regional minimum wage increases, workers will also have their social insurance contributions increased, because according to current legal regulations, the monthly salary for compulsory social insurance contributions must not be lower than the regional minimum wage at the time of payment for workers doing the simplest job or position under normal working conditions. In addition, workers will have their unemployment insurance contributions increased and their maximum unemployment benefits increased.

According to the 2013 Law on Employment, the monthly unemployment benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 consecutive months before unemployment, but not exceeding 5 times the basic salary for employees subject to the salary regime prescribed by the State, or not exceeding 5 times the regional minimum wage as prescribed by the Labor Code for employees paying unemployment insurance according to the salary regime decided by the employer at the time of termination of the labor contract or employment contract.

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