Ministry of Interior: No cuts in overtime pay and allowances when increasing minimum wage

The Ministry of Home Affairs requires not to abolish or reduce wage regimes for overtime work, night work, in-kind allowances and other regimes when increasing regional minimum wages.

It is expected that the regional minimum wage will be adjusted to increase by an average of 7.2% from January 1, 2026. (Photo: PV/Vietnam+)

The Ministry of Home Affairs is drafting a Decree regulating the minimum wage for employees working under labor contracts.

The minimum monthly wage is expected to increase from 250,000-350,000 VND from January 1, 2026 (equivalent to an average rate of 7.2%) compared to the current minimum wage. Specifically, the regional minimum wage in region I is 5.31 million VND/month, region II is 4.73 million VND/month, region III is 4.14 million VND/month, region IV is 3.7 million VND/month.

The minimum hourly wage corresponds to the 4 regions as follows: Region I is 25,500 VND/hour, Region II is 22,700 VND/hour, Region III is 20,000 VND/hour, Region IV is 17,800 VND/hour.

In addition, the Ministry of Home Affairs also provides regulations on how to calculate salary levels applicable to specific cases.

Accordingly, for employees who are paid weekly or daily, by product or by piecework, the salary must not be lower than the minimum monthly wage or the minimum hourly wage.

The converted salary based on normal working hours is chosen by the employer according to the provisions of the labor law as follows. Specifically, the converted monthly salary is equal to the weekly salary multiplied by 52 weeks divided by 12 months; or the daily salary multiplied by the number of normal working days in a month; or the product salary, piecework salary performed during normal working hours in a month.

Hourly salary is converted by weekly or daily salary divided by normal working hours per week or per day; or by product salary or contract salary divided by normal working hours to produce products or perform contracted tasks.

The draft regulation stipulates that when adjusting the minimum wage, employers are responsible for reviewing agreements in labor contracts, collective labor agreements and regulations of the employer to make appropriate adjustments and supplements.

In particular, the Ministry of Home Affairs stated that it is not allowed to abolish or reduce salary regimes when employees work overtime, work at night, compensation regimes in kind and other regimes according to the provisions of labor law.

For agreed contents, commitments in labor contracts, collective labor agreements or other legal agreements that are more favorable to employees (including agreements on salary regimes for employees doing jobs or positions requiring education and vocational training at least 7% higher than the minimum wage) than the regulations, they shall continue to be implemented, unless the parties have other agreements.

The Ministry of Home Affairs has issued regulations on how to calculate salary levels applicable to specific cases when adjusting regional minimum wages. (Photo: VNA)

Regarding the application of salary regions, it will be determined according to the employer's operating location. Specifically, the employer operating in which region will apply the minimum wage prescribed for that location.

If an employer has units or branches operating in areas with different minimum wages, the minimum wage prescribed for the area in which the unit or branch operates shall apply.

Employers operating in industrial parks and export processing zones located in areas with different minimum wages shall apply the locality with the highest minimum wage.

For employers operating in an area with a name change or separation, the minimum wage prescribed for the area before the name change or separation shall be temporarily applied until the Government has new regulations.

Employers operating in a newly established area from one or more areas with different minimum wages shall apply the minimum wage according to the area with the highest minimum wage.

According to Vietnam+

Source: https://baothanhhoa.vn/bo-noi-vu-khong-cat-giam-tien-them-gio-tro-cap-khi-tang-luong-toi-thieu-255792.htm