Regional Minimum Wages Increase: Decree 74/2024/NĐ-CP

Jul 23, 2024

News

Regional Minimum Wages Increase: Decree 74/2024/NĐ-CP

The Government has officially issued Decree 74/2024/NĐ-CP, establishing new monthly and hourly regional minimum wages for employees under labor contracts.

Table of Contents

Introduction

On July 1, 2024, Decree 74/2024/NĐ-CP officially increases Vietnam’s regional minimum wages, replacing Decree 38/2022/NĐ-CP. This important update impacts all employers and employees under labor contracts nationwide.

New Minimum Wage Rates by Region

The following updated rates apply based on regional classification:

These updates aim to protect workers’ living standards and reflect inflation and market conditions. For businesses, especially in labor-intensive industries, staying compliant with the updated wage floors is essential to avoid penalties and employee dissatisfaction.
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Decree 74/2024: What Employers Must Prepare

Decree 74/2024 will officially replace Decree 38/2022/NĐ-CP on July 1, 2024. Employers must now update payroll systems, employment contracts, and HR policies in accordance with the new wage standards. This may also affect social insurance contributions, overtime pay calculations, payroll management and budgeting for the second half of the year.

Ensure Compliance with a Trusted Partner

Understanding the implications of Decree 74 and applying them accurately can be time-consuming. Whether you’re managing a small business or a large enterprise, having expert payroll support helps reduce legal risks and ensures smooth operations.