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Ministry of Interior: No cuts in overtime pay, allowances when increasing minimum wage

The Ministry of Home Affairs requires not to eliminate or reduce wage regimes for overtime work, night work, in-kind allowances and other regimes when increasing regional minimum wages.

Báo Thanh HóaBáo Thanh Hóa23/07/2025

Ministry of Interior: No cuts in overtime pay, allowances when increasing minimum wage

It is expected that the regional minimum wage will be adjusted to increase by an average of 7.2% from January 1, 2026. (Photo: PV/Vietnam+)

The Ministry of Home Affairs is drafting a Decree regulating the minimum wage for employees working under labor contracts.

The monthly minimum wage is expected to increase from 250,000-350,000 VND from January 1, 2026 (equivalent to an average rate of 7.2%) compared to the current minimum wage. Specifically, the regional minimum wage in region I is 5.31 million VND/month, region II is 4.73 million VND/month, region III is 4.14 million VND/month, region IV is 3.7 million VND/month.

The minimum hourly wage corresponding to the 4 regions is as follows: Region I is 25,500 VND/hour, Region II is 22,700 VND/hour, Region III is 20,000 VND/hour, Region IV is 17,800 VND/hour.

In addition, the Ministry of Home Affairs also provides regulations on how to calculate salary levels applicable to specific cases.

Accordingly, for employees who are paid weekly or daily, by product or by piece rate, the salary must not be lower than the minimum monthly wage or the minimum hourly wage.

The converted salary based on normal working hours is chosen by the employer according to the provisions of the labor law as follows. Specifically, 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 salary based on products, piecework wages performed during normal working hours in a month.

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

The draft regulation stipulates that when adjusting the minimum wage, employers are responsible for reviewing agreements in labor contracts, collective labor agreements and regulations of the employer to make appropriate adjustments and supplements.

In particular, the Ministry of Home Affairs clearly stated that it is not allowed to eliminate or reduce salary regimes when employees work overtime, work at night, compensation in kind and other regimes according to the provisions of labor law.

For the agreed contents, commitments in the labor contract, collective labor agreement or other legal agreements that are more favorable to employees (including agreements on salary regime for employees doing jobs or positions requiring education and vocational training at least 7% higher than the minimum wage) than the regulations, they will continue to be implemented, unless the parties have other agreements.

Ministry of Interior: No cuts in overtime pay, allowances when increasing minimum wage

The Ministry of Home Affairs has issued regulations on how to calculate salary levels applicable to specific cases when adjusting regional minimum wages. (Photo: VNA)

Regarding the application of the salary area, it will be determined according to the employer's place of operation. Specifically, the employer operating in which area, the minimum wage prescribed for that area will be applied.

If an employer has units or branches operating in areas with different minimum wages, the unit or branch operating in which area shall apply the minimum wage prescribed for that area.

Employers operating in industrial parks and export processing zones located in areas with different minimum wages shall apply the area with the highest minimum wage.

For employers operating in areas with name changes or separations, the minimum wage prescribed for the area before the name change or separation shall be temporarily applied until the Government issues new regulations.

Employers operating in a newly established area from one or more areas with different minimum wages shall apply the minimum wage according to the area with the highest minimum wage.

According to Vietnam+

Source: https://baothanhhoa.vn/bo-noi-vu-khong-cat-giam-tien-them-gio-tro-cap-khi-tang-luong-toi-thieu-255792.htm


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