Notes on regional minimum wages in 2023 you should know

What is the regional minimum wage?

According to Article 91 of the 2019 Labor Code, the minimum wage is the lowest wage paid to employees doing the simplest work under normal working conditions to ensure the minimum living standard of employees and their families, in accordance with socio -economic development conditions.

Minimum wage is determined by region, monthly and hourly.

The minimum wage is adjusted based on the minimum living standards of workers and their families; the correlation between the minimum wage and market wages; the consumer price index, economic growth rate; the relationship between labor supply and demand; employment and unemployment; labor productivity; and the ability of enterprises to pay.

(Illustration).

Subjects applying regional minimum wage

Article 2 of Decree 38/2022/ND-CP stipulates that the subjects applying the regional minimum wage include:

- Employees work under labor contracts in accordance with the provisions of the Labor Code.

- Employers as prescribed by the Labor Code, including:

+ Enterprises according to the provisions of the Law on Enterprises.

+ Agencies, organizations, cooperatives, households and individuals that hire or use workers to work for them according to an agreement.

- Other agencies, organizations and individuals related to the implementation of the minimum wage prescribed in Decree 38/2022/ND-CP.

Guide to applying regional minimum wages

The monthly minimum wage is the lowest wage used as a basis for negotiation and payment of wages to employees applying the monthly wage payment method, ensuring that the wage according to the job or position of the employee who works enough normal working hours in the month and completes the agreed labor or work norms must not be lower than the monthly minimum wage.

The minimum hourly wage is the lowest wage used as a basis for negotiation and payment of wages to employees applying the hourly wage payment method, ensuring that the wage according to the job or position of the employee working in one hour and completing the agreed labor norm or work must not be lower than the minimum hourly wage.

For employees who are paid weekly or daily or by product or by piecework, the salary of these forms of payment, if converted to monthly or hourly, must not be lower than the minimum monthly salary or minimum hourly salary. The salary converted to monthly or hourly based on normal working hours is chosen by the employer according to the provisions of the labor law.

Accordingly, 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 product-based salary, piecework salary 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.

Businesses are fined if they pay workers less than the minimum wage.

According to Clause 3, Article 17 of Decree 12/2022/ND-CP, if the enterprise pays a salary lower than the announced regional minimum wage, it will be subject to an administrative penalty.

Specifically, for violations of not increasing salaries for a total of 1-10 employees, the enterprise will be fined 20-30 million VND.

Violating not increasing salary for 11 - 50 employees, fine 30 - 50 million VND.

Violating the regulation of not increasing salary for 51 or more employees, fined 50 - 75 million VND.

In addition, the employer must also pay the full salary and an additional amount of interest to the employee.

According to ANH NHAT (VTC News)

Source link