Many workers will get a double pay raise from July 1, 2024?

This is likely good news for many workers, as they will receive two salary increases starting July 1, 2024, if the draft Decree on minimum wage is approved.

Nhiều người lao động sẽ được tăng lương 2 lần từ ngày 1/7/2024? ảnh 1

If the new regional level is passed

According to Clause 1, Article 3 of the draft Decree on regional minimum wage for contract workers, the regional minimum wage for contract workers is expected to increase by 200,000 - 280,000 VND/month, equivalent to a 6% increase compared to the current level.

Therefore, when the regional minimum wage increases as proposed in the aforementioned draft, the regional minimum wage applicable to workers will also increase accordingly.

However, for workers earning more than the regional minimum wage, it depends on the agreement between the worker and the employer.

Currently, the regional minimum wage is stipulated in Article 3 of Decree 38/2022/ND-CP, with the lowest rate in Region I being 3.25 million VND/month and the highest rate being 4.68 million VND/month.

Specifically, the proposed minimum regional levels are as follows:

With the minimum monthly wage (VND/month)

With the minimum hourly wage (unit: VND/hour)

Thus, it can be seen that the minimum wage (monthly or hourly) will increase compared to the current hourly minimum wage. The expected increase ranges from 200,000 to 280,000 VND/month or 1,000 to 1,300 VND/hour.

If the change in geographical area for eligibility for the regional minimum wage is approved.

Besides increasing the regional minimum wage as proposed by the Ministry of Labour, Invalids and Social Affairs , the draft Decree on regional minimum wage also adjusts the areas eligible for the regional minimum wage.

Accordingly, the draft has adjusted many regions from lower to higher minimum wage levels.

Consequently, workers in areas currently receiving a lower regional minimum wage will see their minimum wage increase in line with the increase in the higher regional minimum wage.

Specifically, the adjustments to the geographical areas eligible for the regional minimum wage are as follows:

- Transition from Region II with an expected monthly minimum wage of VND 4,410,000/month to Region I with an expected monthly minimum wage of VND 4,960,000/month for the following localities: Quang Yen town, Dong Trieu town, Uong Bi city, and Mong Cai city in Quang Ninh province.

- Transition from Region III with an expected monthly minimum wage of 3,860,000 VND/month to Region II with an expected monthly minimum wage of 4,410,000 VND/month for the following localities:

Thai Binh City (Thai Binh province); Thanh Hoa City, Sam Son City, Nghi Son town, Bim Son town (Thanh Hoa province); Ninh Hoa town (Khanh Hoa province); Soc Trang City (Soc Trang province).

- The following localities will be upgraded from Region IV with a projected monthly minimum wage of VND 3,450,000 to Region III with a projected monthly minimum wage of VND 3,860,000: Trieu Son district, Tho Xuan district, Yen Dinh district, Vinh Loc district, Thieu Hoa district, Ha Trung district, Hau Loc district, Nga Son district, Hoang Hoa district, Nong Cong district (Thanh Hoa province); Thai Thuy district, Tien Hai district (Thai Binh province); Ninh Phuoc district (Ninh Thuan province).

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