Official Dispatch 2086/BLDTBXH-TLDLDVN 2022 on implementing Decree 38/2022/ND-CP on minimum wage levels

Pursuant to the 2019 Labor Code, recommendation of the National Wage Council and at the proposal of the Ministry of Labor, Invalids and Social Affairs, on June 12, 2022, the Government promulgates the Decree No. 38/2022/ND-CP prescribing minimum wage levels applicable to employees working under labor contracts, that is effective from July 01, 2022. In order to implement the Decree in accordance with regulations, ensure the maintenance of harmonious, stable and progressive labor relations in enterprises, the Ministry of Labor, Invalids and Social Affairs and the Vietnam General Confederation of Labor agree on the following contents:

1. The Chairpersons of People’s Committees of provinces and centrally-run cities shall direct provincial-level Departments of Labor, Invalids and Social Affairs to coordinate with the Management Boards of Industrial Parks and Export Processing Zones, Labor Confederations, employers’ representative organizations at the localities, and relevant departments and sector in carrying out the following tasks:

1.1. Expeditiously organize the propaganda, dissemination and guidance on the implementation of Decree No. 38/2022/ND-CP in accordance with regulations for employers and employees in the localities, in which the following 02 contents are remarkable:

a) With regard to mechanism and subjects of application: Monthly and hourly minimum wage levels are the lowest ones which serve as a basis for employees, trade unions and employers to reach agreement on and pay wages, in which:

- Monthly minimum wage levels shall be applied to employees enjoying monthly wages.

- Hourly minimum wage levels shall be applied to employees enjoying hourly wages.

- For workers who are paid on a weekly or daily basis, or who are paid based on products or piecework, their salary, when converted into the monthly or hourly rate (in accordance with Points a and b, Clause 3, Article 4 of the Decree No. 38/2022/ND-CP), must not be lower than the monthly or hourly minimum wage level specified by the Government. The conversion into such monthly or hourly wage level shall be decided by the employers, the conversion result aims at checking the compliance with other forms of wage payment compared to the monthly or hourly minimum wage level specified by the Government. The Decree does not require the change of forms of wage payment that are agreed upon by the employers and employees.

b) With regard to implementation responsibility: According to Clause 3, Article 5 of Decree No. 38/2022/ND-CP, employers shall be responsible for:

- Reviewing agreements in their labor contracts, collective labor agreements and regulations to adjust and supplement accordingly. It is not allowed to neither abolish nor cut wage-based allowances payable to employees who work overtime, at night, or benefits in kind and other entitlements in accordance with labor law regulations.

- Agreed contents or commitments in labor contracts, labor agreements or other legal agreements, that bring more benefits for employees compared to provisions provided in this Decree, shall continue to be implemented, unless otherwise agreed by both parties. Accordingly, implemented contents, including the contents that the level of wage to be paid to an employee performing a job which requires trained employees must be at least 7% higher than the relevant minimum wage level, shall continue to be implemented, unless otherwise agreed by both parties in accordance with labor law regulations.

1.2. Strengthen the guidance and support for employees, grassroots-level trade union organizations and employers in dialogue and bargain activities, especially collective bargains for agreements on wages and other working conditions that are more beneficial to employees than what is prescribed by law regulations. Proactively grasp the situation of industrial relations at enterprises, promptly support, guide and handle arising problems, minimize labor disputes, strikes, ensure the maintenance of harmonious, stable and progressive industrial relations at enterprises. The implementation of Decree No. 38/2022/ND-CP in enterprises in the localities, and especially arising difficulties and problems should be promptly reported to the Ministry of Labor, Invalids and Social Affairs for prompt guidance on handling.

2. Labor Confederations of provinces and centrally-run cities, sectoral-level trade unions, trade unions of corporations the Vietnam General Confederation of Labor shall:

a) Proactively coordinate with state management agencies in charge of labor to implement the tasks mentioned in point 1 of this document.

b) Strengthen the propaganda and dissemination of the Decree No. 38/2022/ND-CP to employees and grassroots-level trade union organizations for the implementation in accordance with regulations; strengthen legal consultancy activities for employees and grassroots-level trade union officials.

c) Direct the superior trade unions of grassroots-level trade unions to promptly support the grassroots trade unions to grasp employees’ aspirations; review working conditions and standards to proactively propose, carry out dialogues and bargains with employers for agreements on wages and other working conditions that are more beneficial to employees than what is prescribed by law regulations. Timely guide and support employees and grassroots-level trade unions in solving problems and disputes arising in industrial relations at enterprises.

Chairpersons of People’s Committees of provinces and centrally-run cities, Labor Confederations of provinces and centrally-run cities sectoral-level trade unions, trade unions of corporations the Vietnam General Confederation of Labor are required to direct and deploy the implementation of the above-mentioned contents./.