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KoreanREGIONAL MINIMUM WAGE INCREASE BY 6% FROM 01/07/2024
On June 29, 2024, the National Assembly passed a resolution at the 7th session of the 15th National Assembly, adjusting the base salary from 1.8 million VND/month to 2.34 million VND/month (an increase of 30%) from July 1, 2024. (Decree 73/2024/ND-CP dated June 30, 2024).
Notably, the regional minimum wage is adjusted according to the provisions of the Labor Code (an average increase of 6% applied from July 1, 2024) (Decree 74/2024/ND-CP dated June 30, 2024). Accordingly, the regional minimum wage when increased by 6% is as follows:
| Region | From July 1, 2024 | Current |
| Region I | 4,960,000 VND/month | 4,680,000 VND/month |
| Region II | 4,410,000 VND/month | 4,160,000 VND/month |
| Region III | 3,860,000 VND/month | 3,640,000 VND/month |
| Region IV | 3,450,000 VND/month | 3,250,000 VND/month |
Thus, based on the above regulations, the employee's salary cannot be lower than the prescribed minimum wage.
Therefore, after increasing the regional minimum wage to 6% from July 1, 2024, if the salary agreed in the employee's labor contract is lower than the increased minimum wage, the company needs to increase to comply with new regulations.
In case after increasing the regional minimum wage from July 1, 2024, the salary agreed upon in the employee's contract is equal to or higher than the increased minimum wage, the company is not required to re-adjust the salary increase accordingly, but are implemented according to the labor contract or salary increase regulations of the Company.
Download decree No. 73/2024/ND-CP dated June 30, 2024 for the base salary: Decree No. 73/2024/ND-CP.pdf
Download decree No. 74/2024/ND-CP dated June 30, 2024 for minimum wage level: Decree No. 74/2024/ND-CP.pdf
