Question: I would like to ask, what factors will the adjustment of the minimum wage of workers be based on?

Reply:

What is the minimum wage?

According to Clause 1, Article 91, Labor Code 2019, 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 workers. workers and their families, in accordance with socio-economic development conditions.

Based on what factors is the minimum wage of workers adjusted?

According to Clause 3, Article 91, Labor Code 2019, the minimum wage is adjusted based on factors including:

- Minimum living standards of workers and their families;

- Correlation between minimum wage and market salary;

- Consumer price index, economic growth rate;

- Labor supply and demand relationships;

- Employment and unemployment;

- Labor productivity;

- Ability to pay of the business.

Regulations on application of minimum wage to employees

Regulations on applying the minimum wage to employees according to Article 4, Decree No. 38/2022/ND-CP are as follows:

- Minimum monthly salary is the lowest salary as a basis for negotiation and payment to employees applying the monthly salary method, ensuring salary according to the job or position of the employee. enough normal working hours during the month and complete the agreed labor or work norms which must not be lower than the monthly minimum wage.

- The hourly minimum wage is the lowest wage as a basis for negotiation and payment to employees applying the hourly wage method, ensuring a salary according to the job or position of the employee. in one hour and complete the agreed labor or work quota which must not be lower than the hourly minimum wage.

- For employees applying weekly or daily salary or product or piece salary, the salary of these payment methods, if converted by month or hour, must not be lower than the minimum wage. month or hourly minimum wage.

Salary converted monthly or hourly based on normal working hours selected by the employer according to the provisions of labor law as follows:

+ The converted monthly salary is equal to the weekly salary multiplied by 52 weeks divided by 12 months; or daily wage multiplied by the number of normal working days in the month; or product-based salary or piece-rate salary made during normal working hours of the month.

+ The converted hourly salary is equal to the weekly or daily salary divided by the number of normal working hours per week or per day; or product-based salary, contract salary divided by the number of working hours during normal working hours to produce products or perform contract tasks.

Regulations on regional application to determine the minimum wage

According to Clause 3, Article 3, Decree No. 38/2022/ND-CP, the application of regional area is determined according to the employer's place of operation as follows:

- Employers operating in any region shall apply the minimum wage prescribed for that area.

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

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

- Employers operating in an area with a change of name or separation shall temporarily apply the minimum wage prescribed for the area before the change of name or separation until the Government has regulations. new.

- Employers operating in an area newly established from one area or multiple areas with different minimum wage rates shall apply the minimum wage according to the area with the highest minimum wage.

- Employers operating in a province-affiliated city newly established from an area or multiple areas in region IV shall apply the minimum wage prescribed for the provincial city area. The remaining is in Clause 3 of the Appendix issued with Decree No. 38/2022/ND-CP.