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
(Unit: VND/month) |
Minimum hourly salary
(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.
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Please do not hesitate to contact Dr. Oliver Massmann at [email protected] if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.
