Impact of the minimum wage increase on employers
After more than 2 years of applying Decree 90/2019/ND-CP regarding the regional minimum wage for employees working under labour contracts, recently, the Vietnamese Government promulgate Decree 38/2022/ND-CP to raise it by 6% which has come into effect on July 1, 2022. (Unit: VND/month) Table 1: Minimum wage per month for employees under new regulations This growth will affect the following labour issues which the employers should be aware of: 1. Increase the employee salary The minimum wage is the lowest salary paid to the employees performing the simplest work in normal working conditions to ensure a minimum living standard for them and their families. Hence, the salary for each job must not be lower than the minimum wage [2] . If the employers are paying a salary lower than the regional minimum wage specified in Decree 38/2022/ND-CP to the employees from July 1, 2022, they are responsible for increasing the salary. O...