On 12 April 2022, Vietnam’s National Wage Council finalised their proposal to increase Minimum Monthly Wage for employees in Vietnam at an average of 6% across the 4 regions, effective from 1 July 2022. This increase is subject to the Prime Minister’s final approval, which is expected to be procedural.
| Zone | Minimum Monthly Wage (VND) | Increase (VND) | |
| Prior to 1 July 2022 | From 1 July 2022 | ||
| Zone 1 | 4,420,000 | 4,680,000 | 260.000 |
| Zone 2 | 3,920,000 | 4,160,000 | 240.000 |
| Zone 3 | 3,420,000 | 3,640,000 | 220.000 |
| Zone 4 | 3,070,000 | 3,250,000 | 180.000 |
(Zone 1 covers areas including urban areas of Hanoi, Ho Chi Minh City and Hai Phong, along with certain industrial areas of Binh Duong, Dong Nai and Ba Ria – Vung Tau. Zone 2 covers rural areas of Hanoi and Ho Chi Minh City, along with major urban areas in the country)
How does the change impact costs of employers and employees?
Once the change is effective:
- Employers should ensure that their staff are not paid less than the monthly minimums.
- This increase also impacts the maximum cap for the monthly calculation of Unemployment Insurance for employer and employee portions. The maximum cap is 20 times the Minimum Monthly Wage of the Zone the employer is in.
Example for Zone 1:
| Insurances | Maximum Monthly Cap | |
| Prior to 1 July 2022 | From 1 July 2022 | |
| Unemployment Insurance (UI) | 88,400,000 VND
(20 x 4,420,000 VND) |
93,600,000 VND (20 x 4,680,000 VND) |
Employers should factor in these changes into their budget.
Contact our teams for expert support and further information on managing corporate compliance in Vietnam.
Tran Huynh, Head of Payroll Services and HR Consulting
Email: tran.huynh@acclime.com
Matthew Lourey, Managing Partner
Email: m.lourey@acclime.com
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