1. Current regional minimum wage regulations

Current regional minimum wage regulations:

Pursuant to Clause 1, Article 3 Decree 38/2022/ND-CP Regulations on monthly minimum wage and hourly minimum wage for employees working for employers by region are as follows:

- Region I: Monthly minimum wage is 4,680,000 VND and hourly minimum wage is 22,500 VND

- Region II: Monthly minimum wage is 4,160,000 VND and hourly minimum wage is 20,000 VND

- Region III: Monthly minimum wage is 3,640,000 VND and hourly minimum wage is 17,500 VND

- Region IV: Monthly minimum wage is 3,250,000 VND and hourly minimum wage is 15,600 VND

Accordingly, based on which region the employee works in, determine the regional minimum wage according to the provisions of this Decree.

The application of the regional minimum wage is determined as follows:

Pursuant to Article 3 of Decree No. 38/2022/ND-CP stipulates as follows:

- Employers operating in an area within this 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 zones or 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 wages shall apply according to the area with the highest minimum wage.

Instructions for applying the current regional minimum wage:

Pursuant to Article 4 of Decree No. 38/2022/ND-CP regulating the application of salary levels as follows:

- Minimum monthly salary is the lowest salary as a basis for agreement and payment to employees applying the monthly salary method, ensuring salary according to the job or position of the employee. The agreed working hours must not be lower than the monthly minimum wage

- The minimum hourly wage is the lowest wage as a basis for negotiating and paying wages to employees applying the hourly wage method, ensuring a salary according to the job or position of the employee working in the workplace. per 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 to monthly or hourly rates, 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.

2. Is it possible to pay less than the regional minimum wage?

Article 90 of the 2019 Labor Code stipulates as follows:

- Wage is the amount of money that the employer pays the employee according to the agreement to perform the job, including salary according to job or title, salary allowances and other supplements.

- 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.

Thus, it is against the law for employers to pay employees based on job or title lower than the regional minimum wage. On the other hand, salary allowances and other supplements will be agreed upon by the parties and are not required. Therefore, the lowest salary paid to employees must be equal to the regional minimum wage prescribed by the Government

3. Penalties for paying wages lower than the regional minimum wage

Penalties for violators:

According to the provisions of Clause 3, Article 17 Decree 12/2022/ND-CP Regulations on penalties for violations of the law on wages are as follows:

Fines shall be imposed on employers who pay employees lower than the minimum wage prescribed by the Government as follows:

- Fine from 20 million VND to 30 million VND for violations of imprisonment of 01 to 10 workers

- Fine from 30 million VND to 50 million VND for violations from 11 to 50 workers

- Fine from 50 million VND to 75 million VND for violations of 51 or more workers

Fines shall be imposed on employers for failing to pay wages or not paying enough at the same time as paying employees an amount equivalent to the amount the employer pays for mandatory social insurance. Health insurance, unemployment insurance for employees who are not subject to compulsory social insurance, health insurance, unemployment insurance according to the provisions of law according to the following penalty regulations:

- Fine from 3 million VND to 5 million VND for violations from 01 to 10 workers

- Fine from 5 million VND to 8 million VND for violations from 11 to 50 workers

- Fine from 8 million VND to 12 million VND for violations involving 51 to 100 workers

- Fine from 12 million VND to 15 million VND for violations from 101 to 300 workers

- Fine from 15 million VND to 20 million VND for violations of 301 or more workers

Also in this Decree, the law stipulates effective remedies as follows:

- Forcing the employer to pay the full salary plus interest on late or underpaid salary to the employee calculated according to the highest interest rate on non-term deposits of public state-owned commercial banks. announced at the time of sanction for violations according to this regulation.

- Forcing the employer to pay a full salary equivalent to the compulsory social insurance, health insurance, and unemployment insurance contributions plus interest on that amount calculated at the zero deposit interest rate. The highest term announced by state-owned commercial banks at the time of sanctioning workers for violations of this Decree.

Sanctions for violating organizations:

The fine level for organizations is equal to 02 times the fine level for individuals, specifically as follows:

- Fine from 40 million VND to 60 million VND for violations of 01 to 10 workers

- Fine from 60 million VND to 100 million VND for violations from 11 to 50 workers

- Fine from 100 million VND to 150 million VND for violations of 51 or more employees.