Vietnamese
In previous regulations, diplomas take the important role in the wage levels of employees. However, this notion is changed in the new regulations prescribed in the Decree No. 38/2022/ND-CP.
Taking effect until June 30, 2022, the Decree No. 90/2019/ND-CP prescribes the region-based minimum wage as follows:
1. The region-based minimum wage levels specified in Article 3 of this Decree are the lowest ones which serve as a basis for enterprises and employees to reach an agreement on and pay wages, provided that the level of wage to be paid to an employee who works in normal working conditions, ensures sufficient normal working time in a month as prescribed and fulfills labor norms or work, as agreed, must:
a/ Not be lower than the relevant region-based minimum wage level, for employees who perform the simplest job;
b/ Be at least 7% higher than the relevant region-based minimum wage level, for employees performing jobs which require trained employees as specified in Clause 2 of this Article.
Accordingly, region-based minimum wage levels are paid to an employee who works in normal working conditions, ensures sufficient normal working time.
In the case that employees performing jobs which require skilled employees must be paid least 7% higher than the relevant region-based minimum wage level.
The regulations on paying at least 7% higher than the relevant region-based minimum wage level for employees who are skilled are prescribed in Decrees on region-based minimum wage, including:
It can be seen that the higher minimum wages for skilled employees are implemented from January 01, 2008, to now.
However, the new Decree 38 on region-based minimum wage has no provisions on paying higher wage than region-based minimum wage for trained employees (employees with degrees of vocational, intermediate, colleges, universities...)
Accordingly, Clause 1, Article 4, the Decree 38/2022 prescribes:
1. The monthly minimum wage levels are the lowest ones which serve as a basis for employers and employees to reach agreement on and pay wages, in case of paying wages on a monthly basis, provided that the level of wage to be paid (accordingly job or title) to an employee who works sufficient normal working time in a month and fulfills labor norms or work as agreed must not be lower than the monthly minimum wage levels.
Accordingly, monthly region-based minimum wage levels are the lowest ones which service as a basis for paying wages, in case of paying wages on a monthly basis to an employee who works sufficient normal working time in a month and fulfills labor norms or work as agreed.
For this regulation, skilled and unskilled employees has no distance on minimum wage from July 01 2022.
All employees shall be applied with the general region-based minimum wage levels prescribed in Clause 1, Article 3, the Decree. 38/2022/ND-CP.
Region | Monthly region-based minimum wages Unit: VND/month) | Hourly minimum wage levels Unit: VND/hour) |
Region I | 4,680,000 | 22,500 |
Region II | 4,160,000 | 20,000 |
Region III | 3,640,000 | 17,500 |
Region IV | 3,250,000 | 15,600 |
However, Point 2.6, Clause 2, Article 6 on social insurance, Decision No. 595/QD-BHXH date 2017 (in effect) prescribes that:
2.6. The monthly salary as the basis for payment of compulsory social insurance specified in this Clause must not fall below the region-based minimum wage of the person holding the simplest position under normal working conditions.
a) A person whose job or position requires training (including training provided by the employer) must be higher than the region-based minimum wage by at least 7%;
b) The salary of a person working under strenuous, toxic or dangerous conditions must be higher by at least 5% than that of a person having a similar job or position under normal working conditions; The salary of a person working under extremely strenuous, toxic or dangerous conditions must be higher by at least 7% than that of a person having a similar job or position under normal working conditions.
Therefore, the minimum wage of social insurance for skilled employees (degrees of college, university, intermediate...) must be higher than the region-based minimum wage by at least 7%.
On the other hand, the Decree No. 38/2022 only prescribes on the effective termination of the Decree No. 90/2019/ND-CP from July 01, 2022 without any guidance on payment for skilled employees.
Therefore, when the Decree No. 38/2022/ND-CP is formally applied, the legal provisions prescribed in the Decision 595 are still effective.
This is an advantage for enterprises in promulgating wages and social insurance for social insurance agencies.
Therefore, it is still impossible to confirm exactly whether region-based minimum wages are “equal between skilled and unskilled employees. Enterprises and employees must wait for other guiding documents from the Government and other relevant ministries and agencies.
