On 30 June 2024, the Government issued (i) Decree No. 73/2024/ND-CP regulating base salary and bonus regime ("Decree 73"); and (ii) Decree No. 74/2024/ND-CP regulating the minimum salary for employees working under labor contracts ("Decree 74") with both being effective from 1 July 2024. According to Decree 73, the base salary from 1 July 2024 will increase to VND,2340,000/month from VND1,800,000/month.
Further, according to Decree 74, the new monthly minimum salary and hourly minimum salary by region is as follows:
Region Minimum monthly salary Minimum hourly salary
(Unit: VND/month) (Unit: VND/hour)
Region I 4,960,000 23,800
Region II 4,410,000 21,200
Region III 3,860,000 18,600
Region IV 3,450,000 16,600
According to this new minimum salary, the cap for contribution of compulsory social insurance increases to VND46,800,000/month (an increase of approximately 30% compared to the old base salary) while the same for unemployment insurance increases to VND99,200,000/month for Region I, VND88,200,000/month for Region II, VND 77,200,000 for Region III, VND69,000,000 for Region III, subject to future changes with regards to the to-be-issued Amended Law on Social Insurance (where applicable).
We – Duane Morris Vietnam – are following up closely with the new developments of the Amended Law on Social Insurance and any new progress will be updated in a timely manner.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.