Some important changes in wage and social insurance policies for employees and employers will be applied from July 1, 2022.

Regional minimum wage increase

On June 12, the Government issued Decree 38/2022 stipulating the minimum wage for employees working under labor contracts. This Decree officially takes effect from July 1. Accordingly, the monthly minimum wage rises by 6% on average (corresponding to an increase of VND 180,000 - VND 260,000) compared to the current minimum wage.

Specifically, Decree 38 stipulates the minimum monthly wage according to 4 regions: Region I increases by 260,000 VND, from 4,420,000 VND/month to 4,680,000 VND/month. Region II increases by 240,000 VND, from 3,920,000 VND/month to 4,160,000 VND/month. Region III increases by 210,000 VND from 3,430,000 VND/month to 3,640,000 VND/month. Region IV increases by 180,000 VND from 3,070,000 VND/month to 3,250,000 VND/month.

Regarding the minimum hourly wage, Region I is 22,500 VND/hour, Region II is 20,000 VND/hour, Region III is 17,500 VND/hour, Region IV is 15,600 VND/hour.

Increase social insurance premiums

According to Clause 2, Article 6 of Decision 595 in 2017 of Vietnam Social Security, the monthly salary for compulsory social insurance is not lower than the regional minimum salary at the time of payment for employees doing the simplest job or title, under normal working conditions.

In addition, for employees who do jobs or titles that require trained or apprenticed workers (including workers taught by enterprises themselves) must be at least 7% higher than the regional minimum wage. For employees doing jobs or titles with heavy, hazardous or dangerous working conditions, it must be at least 5% higher.

Thus, when the regional minimum wage increases, the lowest payment for social insurance will also increase. Since then, when receiving social insurance benefits, the amount of money employees receive will also increase.