on June 12, 2022, the Government issued Decree 38/2022/ND-CP regulating the minimum wages for employees working under labor contracts (“Decree 38”). Decree 38 stipulates the monthly minimum wage and the hourly minimum wage applied to employees working under labor contracts; Effective from July 1, 2022; Replace Decree No. 90/2019/ND-CP dated November 15, 2019.
Here, let’s find out with Bizlawyer how to determine the region for the latest minimum wage under Decree 38!
– An employer located in a specific region shall apply the respective statutory minimum wage applied thereto.
– In the event that an employer has its affiliates and/or branches located in different regions to which different statutory minimum wages apply, such affiliates and/or branches must apply the respective statutory minimum wages applied thereto.
– If an employer is located in an industrial park or export processing zone located in the territory containing two or more regions to which different statutory minimum wages apply, the highest statutory minimum wage shall apply.
– If an employer is located in a region which is renamed or divided, the statutory minimum wage applied to that region before it is renamed or divided shall still apply until new regulations promulgated by the Government come into force.
– If an employer is located in a region which is converted or established from a region or by consolidation of two or more regions to which different statutory minimum wages apply, it shall apply the highest statutory minimum wage.
– In case an employer is located in a provincial city which is established from one or more regions in the region IV, it shall apply the statutory minimum wage applied to the remaining provincial cities as prescribed in Clause 3 of the Appendix enclosed Decree 38.
* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.
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