Rearrange 4 minimum wage calculation regions after merging communes and provinces from July 1

The Government regulates the minimum wage in four regions for employees working under labor contracts according to Decree No. 74/2024/ND-CP. (Photo: PV/Vietnam+)

The Ministry of Home Affairs has sent the Draft Decree on decentralization and delegation of authority to perform state management tasks in the field of home affairs to the Ministry of Justice for appraisal before submitting it to the Government for promulgation.

This draft Decree stipulates decentralization and defines the implementation of state management tasks in the field of internal affairs, including: Local government; Labor, wages and social insurance; Employment, occupational safety and hygiene; Vietnamese workers working abroad under contracts; Associations, social funds, charity funds, non-governmental organizations; People with merit; Gender equality; State document and archive work.

The draft Decree has issued an Appendix listing communes (maintaining the status quo or newly formed after July 1, 2025) to apply the minimum wage according to the 4 regions specified in Decree No. 74/2024/ND-CP. Accordingly, the list of regions will be adjusted according to the list of new commune-level and provincial-level administrative units after the arrangement.

Currently, the Government regulates the minimum wage for employees working under labor contracts according to Decree No. 74/2024/ND-CP, effective from July 1, 2024 to present.

Accordingly, the minimum monthly wage in 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.

The minimum hourly wage in region I is 23,800 VND/hour, region II is 21,200 VND/hour, region III is 18,600 VND/hour, and region IV is 16,600 VND/hour.

The list of commune-level areas applying the regional minimum wage will clearly identify which new commune-level administrative units are classified into which regions to serve as the basis for determining the applicable minimum wage.

The Ministry of Home Affairs proposed that the Government issue a Decree in June 2025, effective from July 1, 2025, to comply with the direction of the Government and the Prime Minister and implement the two-level local government model.