On June 30, 2024, the Vietnamese Government issued two critical decrees: Decree 73/2024/ND-CP, which addresses the adjustment of the base salary, and Decree 74/2024/ND-CP, which focuses on the new minimum wage rates. Both decrees became effective on July 1, 2024.

Base Salary Adjustments

The base salary, which underpins the calculation of employee wages and benefits, has been substantially increased by 30%. This adjustment raises the base salary from VND 1.8 million (approximately $71) to VND 2.34 million (approximately $92) per month. This marks the most significant increase in recent years, following delays due to the COVID-19 pandemic. The revised base salary will be used to compute the salaries and allowances of public sector employees, in accordance with their respective salary coefficients.

Pension and Social Insurance Allowance Enhancements

The government has also approved a 15% increase in pensions and social insurance allowances. For pensioners who retired before 1995, there will be an additional monthly increment of VND 300,000 ($11.78) if their pension is less than VND 3.2 million ($125.74), bringing the total to VND 3.5 million ($137.52) if their adjusted pension falls between VND 3.2 million and VND 3.5 million.

Increased Allowances for National Service Contributors

Allowances for individuals who have rendered significant services to the nation will rise by 35.7%, increasing from the current VND 2.06 million ($80.7) to VND 2.79 million ($109.6) per month.

Social Assistance Enhancements

Monthly social assistance for disadvantaged individuals will be increased from VND 360,000 (over $14) to VND 500,000 (nearly $20).

Regional Minimum Wage Increases

In the business sector, there will be an average increase of 6% in the regional minimum wage, with new monthly rates as follows:

Region I: VND 4,950,000 (up from VND 4,420,000)

Region II: VND 4,400,000 (up from VND 3,920,000)

Region III: VND 3,920,000 (up from VND 3,480,000)

Region IV: VND 3,480,000 (up from VND 3,070,000)

Additionally, a 6% increase will apply to the hourly minimum wage, which will range from VND 16,600 ($0.65) to VND 23,800 ($0.93), depending on the region.

These policies are expected to benefit over 50 million people. Minister of Home Affairs Pham Thi Thanh Tra noted that the government has allocated approximately VND 680 trillion ($26.7 billion) to support these new salary, social insurance, and allowance adjustments.

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