Average annual increase of 5.96%

According to the Ministry of Home Affairs, between 2016 and 2024, Vietnam’s policies and legal frameworks on labor relations and wages have been progressively refined to meet practical needs. Minimum wages have been regularly adjusted, with an average annual increase of 5.96%.

An official from the Lang Giang District Labor Federation meets with local workers to understand their living conditions.

The most recent hike of 6% took effect on July 1, 2024, under Government Decree No. 74/2024/ND-CP. The new monthly regional minimum wages are set at 4.96 million VND (216 USD) for Region I, 4.41 million VND for Region II, 3.86 million VND for Region III, and 3.45 million VND for Region IV.

Field surveys show that many enterprises in Bac Giang are already paying wages above the mandated minimum.

For example, Luxshare-ICT Co., Ltd. (operating in Quang Chau and Van Trung industrial parks) increased basic wages from 5.1 to 5.5 million VND per worker per month as of March 2024. Including overtime and allowances, workers now earn an average of 9–12 million VND per month.

Leo Thi Tin, a worker from Son La Province, shared: “I’ve been working at the company for nearly five years. It has always complied with minimum wage regulations and often pays more than required. My husband and I both work here, and our combined monthly income exceeds 20 million VND. We save a portion after covering living expenses and sending money home for our two children.”

Regarding minimum wage policy, Chou-I-Wen, Deputy General Director of Foxconn Vietnam, said the group remains committed to its “people-centered” approach after 18 years of operations in the country.

As part of expansion plans, Foxconn expects to recruit around 47,000 workers in Bac Giang in 2025. Alongside attractive recruitment policies, the group has consistently paid wages above the regional minimum and ensured compliance with Vietnam’s labor regulations.

“We aim to offer the best possible employment, income, and welfare to attract and retain workers,” he noted.

Compliance with regulations, no cuts to allowances

The regional minimum wage serves not only as a basis for salary payments but also for calculating social insurance contributions, which determine future pensions. As a result, workers look forward to wage policy adjustments every year.

The Ministry of Home Affairs has submitted a draft decree on decentralizing administrative responsibilities in internal affairs to the Ministry of Justice for review before presenting it to the government. The draft includes an appendix detailing local administrative units (as of or after July 1, 2024) to determine wage regions under Decree No. 74/2024/ND-CP.

Adjustments to wage regions will be based on the updated list of administrative units following recent territorial reorganizations. The Vietnam General Confederation of Labor will use this as a basis to propose further increases to the National Wage Council. Until any changes are made, local authorities and businesses must comply with current regulations.

The government’s decree clearly states: “Employers must review and adjust wage provisions in labor contracts, collective bargaining agreements, and internal regulations to align with the new minimum wage. They are not allowed to eliminate or reduce overtime pay, night shift allowances, in-kind benefits, or other entitlements stipulated by labor laws.”

According to Le Duc Tho, Vice Chairman of the Bac Giang Labor Confederation, higher wages for workers could lead to increased production costs, prompting some companies to reduce bonuses or allowances.

To protect workers’ rights, the provincial Labor Confederation is working closely with relevant departments and the Bac Giang Industrial Park Management Board to guide grassroots union officials in monitoring salary and benefit payments. They are also raising awareness among workers, encouraging them to understand and supervise their own wages to ensure compliance.

Tho emphasized the importance of strengthening grassroots unions to negotiate wages and benefits beyond the legal minimum through collective agreements.

“Currently, most workers’ wages are based on piecework. Therefore, we will continue to support and motivate workers to boost productivity, raise incomes, and improve living standards,” he said.

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