Proposal to adjust the minimum wage to increase by 6% from July 1, 7
The Ministry of Labor, War Invalids and Social Affairs is drafting a Decree regulating the minimum wage for employees working under labor contracts.
In the draft Decree stipulating the minimum wage for employees working under labor contracts, the Ministry of Labor, War Invalids and Social Affairs proposes to adjust the minimum wage by 6% compared to the current level to Applicable from July 1, 7.
In particular, regarding the minimum wage, the Ministry of Labor, War Invalids and Social Affairs proposed to regulate monthly minimum wages in 4 regions: Region I is 4.960.000 VND/month, Region II is 4.410.000 VND/month. month, region III is 3.860.000 VND/month, region IV is 3.450.000 VND/month.
According to the Ministry of Labor, War Invalids and Social Affairs, the above minimum wage increased from 200.000 VND - 280.000 VND (corresponding to an average rate of 6%) compared to the current minimum wage.
The above-mentioned minimum wage adjustment is about 2% higher than the minimum living standard of workers until the end of 2024 to improve workers' lives; It is expected to basically ensure the minimum living standard in 2025 (pre-calculating a part of 2025's CPI into the minimum living standard so that workers can enjoy it right from mid-2024).
This level of adjustment shares and harmonizes the interests of workers and businesses, paying attention to improving the lives of workers and ensuring the maintenance, recovery and development of production. enterprise's business. 100% of members of the National Wage Council agreed and recommended to the Government to adjust to this level.
The Ministry of Labor, War Invalids and Social Affairs proposes to regulate hourly minimum wages in four regions: region I is 4 VND/hour, region II is 23.800 VND/hour, region III is 21.200 VND/hour, region IV is 18.600 VND/hour.
According to the Ministry of Labor, War Invalids and Social Affairs, the hourly minimum wage continues to be determined based on the equivalent conversion method from the monthly minimum wage and standard working time according to the provisions of the Labor Code.
This is the method that ILO experts have recommended that Vietnam choose and have used when calculating the 2022 hourly minimum wage. 100% of National Wage Council members agreed and recommended adjustments to the Government. according to this level.
Zoning areas and basic zoning application principles are inherited according to the current list of regulations. In addition, there is a review and updating of the names of some areas after changes due to reorganization. administrative boundaries according to the Resolutions of the National Assembly Standing Committee and areas with changes in infrastructure, level of labor market development, investment attraction areas... at the request of the People's Committee Provincial level people, specifically:
Adjusted from region II to region I for: Quang Yen town, Dong Trieu town, Uong Bi city, Mong Cai city in Quang Ninh province.
Adjusted from region III to region II for: Thai Binh city in Thai Binh province; Thanh Hoa city, Sam Son city, Nghi Son town, Bim Son town in Thanh Hoa province; Ninh Hoa town in Khanh Hoa province; Soc Trang city belongs to Soc Trang province.
Adjusted from region IV to region III for: Thai Thuy district, Tien Hai district of Thai Binh province; Trieu Son, Tho Xuan, Yen Dinh, Vinh Loc, Thieu Hoa, Ha Trung, Hau Loc, Nga Son, Hoang Hoa, Nong Cong districts of Thanh Hoa province; Ninh Phuoc district belongs to Ninh Thuan province.
The adjustment of the regions of the above localities aims to create a reasonable balance in labor costs between neighboring areas, because the above areas have more developed labor markets, forming zones and clusters. industry, infrastructure conditions have improved significantly, bordering other areas with higher minimum wages.
What benefits will workers receive if the regional minimum wage is officially increased?
Thus, if the official increase in the regional minimum wage is approved on July 1, 7, workers will enjoy significant accompanying benefits.
First, increase monthly salary.
According to Article 90 of the 2019 Labor Code, the provisions on wages are as follows: Wages are the amount of money that the employer pays to the employee according to the agreement to perform the job, including the salary according to the job or position. title, salary allowances and other additional payments.
Salary according to job or title must not be lower than the minimum wage.
Employers must ensure equal pay, regardless of gender, for employees doing work of equal value.
Second, increase severance pay.
According to Article 99 of the 2019 Labor Code, in case of having to stop working, the employee will be paid as follows:
If it is the employer's fault, the employee is paid the full salary according to the labor contract.
If it is the employee's fault, he or she will not be paid; Other employees in the same unit who have to stop working will be paid at a rate agreed upon by both parties but not lower than the minimum wage.
If due to electricity or water problems that are not due to the employer's fault or due to natural disasters, fires, dangerous epidemics, enemy attacks, relocate the operating location at the request of a competent state agency. rights or for economic reasons, the two parties agree on the salary for stopping work as follows: In case of stopping work for 14 working days or less, the salary for stopping work is agreed to be no lower than the minimum wage; In case you have to stop working for more than 14 working days, the salary for stopping work will be agreed upon by both parties but must ensure that the salary for stopping work for the first 14 days is not lower than the minimum wage.
Third, increase the minimum wage when changing jobs.
Pursuant to Clause 3, Article 29 of the 2019 Labor Code, it is stipulated that employees are transferred to a job different from the labor contract: Employees who transfer to a job other than the labor contract are paid according to the job. new.
If the new job's salary is lower than the old job's salary, the old job's salary will be kept unchanged for 30 working days.
The salary for the new job must be at least 85% of the salary of the old job but not lower than the minimum wage.
Fourth, causing greater damage requires compensation.
According to Clause 1, Article 129 of the 2019 Labor Code, regulations on liability for compensation for damages are as follows: Employees who damage tools, equipment or commit other acts that cause damage to the employer's property shall be must compensate according to the provisions of law or the employer's labor regulations.
In case the employee causes non-serious damage due to negligence with a value of not more than 10 months of the regional minimum wage announced by the Government applied at the place where the employee works, the employee must compensate at most: 03 months' salary and monthly deductions from salary according to the provisions of Clause 3, Article 102 of this Code.
Fifth, increase social insurance payment rates.
According to Article 5, the process of collecting social insurance, health insurance, unemployment insurance, insurance for labor accidents and occupational diseases; Manage social insurance books and health insurance cards issued with Decision 595/QD-BHXH in 2017 on payment rates and payment responsibilities as prescribed in Article 85 of the Law on Social Insurance 2014, Article 86 of the Law on Insurance Social Insurance 2014 and documents guiding its implementation, specifically as follows:
In particular, in Clause 2, Article 6, Procedures for collecting social insurance, health insurance, unemployment insurance, insurance for labor accidents and occupational diseases; Management of social insurance books and health insurance cards issued with Decision 595/QD-BHXH 2017: Monthly salary for compulsory social insurance payment according to the provisions of Article 89 of the Law on Social Insurance and guiding documents for implementation .
Specifically, the monthly salary paid for compulsory social insurance specified in this Clause is not lower than the regional minimum salary at the time of payment for employees doing the simplest job or title under normal working conditions.
Employees with jobs or titles that require trained or vocational workers (including workers trained by the enterprise themselves) must be at least 7% higher than the regional minimum wage.
Employees working in jobs or positions with heavy, hazardous or dangerous working conditions must have at least 5% higher; Jobs or titles with particularly heavy, toxic or dangerous working conditions must be at least 7% higher than the salary of jobs or titles of equivalent complexity, working in working conditions. normal movement.
Sixth, increase unemployment insurance premiums.
In Clause 2, Article 15, Procedures for collecting social insurance, health insurance, unemployment insurance, labor accident and occupational disease insurance; Manage social insurance books and health insurance cards issued with Decision 595/QD-BHXH 2017: Monthly salary paid for unemployment insurance according to the provisions of Article 58 of the Law on Employment and guiding documents.
Specifically, if an employee pays unemployment insurance according to the salary regime decided by the unit, the monthly salary for payment of unemployment insurance is the salary as the basis for paying compulsory social insurance as prescribed in Clause 2, Article 6. In case the employee's monthly salary is If the employee's salary is higher than 20 months' regional minimum wage, the monthly salary paid for unemployment insurance is equal to 20 months' regional minimum wage.
Seventh, increase the maximum level of unemployment benefits.
According to Article 50 of the Employment Law 2013, the level, duration, and time of receiving unemployment benefits are as follows:
The monthly unemployment benefit is equal to 60% of the average monthly salary paid for unemployment insurance of the 6 consecutive months before unemployment but must not exceed 5 times the base salary for eligible employees. implement the salary regime prescribed by the State or not exceed 5 times the regional minimum salary according to the provisions of the Labor Code for employees who pay unemployment insurance according to the salary regime set by the employer. decision at the time of termination of the labor contract or working contract.
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