What factors determine the minimum wage?

What is minimum wage?

Article 91 of the 2019 Labor Code stipulates that the minimum wage (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.

What factors determine the minimum wage?

According to Clause 3, Article 91 of the 2019 Labor Code, the minimum wage (minimum wage) of employees is adjusted based on the following factors:

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

4. The Government shall detail this Article; decide and promulgate the minimum wage based on the recommendations of the National Wage Council”.

Minimum wage officially increases on July 1, 2024.

Thus, the minimum wage of workers is adjusted based on factors including:

Minimum living standards of workers and their families; Correlation between minimum wages and market wages; Consumer price index, economic growth rate; Labor supply and demand relationship.- Employment and unemployment; Labor productivity; Enterprise solvency.

According to Decree No. 74/2024/ND-CP of the Government regulating the minimum wage for employees working under labor contracts, the minimum wage will officially increase on July 1, 2024.

Specifically, Region I increased from 4.68 million VND/month to 4.96 million VND/month (an increase of 280 thousand VND). Region II increased from 4.16 million VND/month to 4.41 million VND/month (an increase of 250 thousand VND). Region III increased from 3.64 million VND/month to 3.86 million VND/month (an increase of 220 thousand VND). Region IV increased from 3.25 million VND/month to 3.45 million VND/month (an increase of 200 thousand VND).

Chau Thu

Source: https://vtcnews.vn/muc-luong-toi-thieu-duoc-dieu-chinh-dua-tren-nhung-yeu-to-nao-ar904863.html