Workers paid regional minimum wages based on their workplaces

After the former Binh Phuoc province and former Dong Nai province merged to form the new Dong Nai province, the regional minimum wage (RMW) also changed, starting from July 1, according to the new administrative unit.

Lawyers from the former Dong Nai Provincial Bar Association (right) provide legal advice on labor to residents of Xuan Hoa commune, former Xuan Loc district, now Xuan Hoa commune. Photo: D.Phu.

Accordingly, the regional minimum wage that employers apply to pay workers based on their workplace will have many changes compared to before.

Wage levels by region for 95 communes and wards

The RMW is the lowest wage paid to workers performing the simplest tasks under normal working conditions to ensure the minimum living standard of workers and their families, in line with socio-economic development conditions. The RMW is established by region, set by month, and by hour.

At the same time, Clause 3, Article 91 of the 2019 Labor Code stipulates that the RMW is adjusted based on the minimum living standard of workers and their families; the correlation between the RMW and market wages; the consumer price index, economic growth rate; labor supply and demand; employment and unemployment; labor productivity; and the enterprise's ability to pay.

Therefore, to align with consumer prices and the socio-economic development situation of localities, Clause 1, Article 3 of Decree 74/2024/ND-CP dated June 30, 2024, of the Government stipulates the RMW for workers working under labor contracts (referred to as Decree 74, effective from July 1, 2024) as follows: the RMW for Region I is 4.96 million VND/month (23,800 VND/hour); Region II is 4.41 million VND/month (21,200 VND/hour); Region III is 3.86 million VND/month (18,600 VND/hour); Region IV is 3.45 million VND/month (16,600 VND/hour).

The new Dong Nai province has 95 communes and wards. Although the communes and wards of the two former provinces, Binh Phuoc and Dong Nai, share many similarities in socio-economic development conditions, there are still many communes that are not comparable to each other or to wards, and there is a disparity in socio-economic development conditions.

Therefore, in Appendix I, List of Commune-level Areas Applying the RMW (Issued with Decree 128/2025/ND-CP dated June 11, 2025, of the Government regulating decentralization and delegation in state management of the Ministry of Home Affairs), workers in the wards of Bien Hoa, Tran Bien, Tam Hiep, Long Binh, Trang Dai, Ho Nai, Long Hung, Binh Loc, Bao Vinh, Xuan Lap, Long Khanh, Hang Gon, Tan Trieu, Phuoc Tan, Tam Phuoc, Phu Ly and the communes of Dai Phuoc, Nhon Trach, Phuoc An, Phuoc Thai, Long Phuoc, Binh An, Long Thanh, An Phuoc, An Vien, Binh Minh, Trang Bom, Bau Ham, Hung Thinh, Dau Giay, Gia Kiem, Thong Nhat, Xuan Duong, Xuan Dong, Xuan Dinh, Xuan Phu, Xuan Loc, Xuan Hoa, Xuan Thanh, Xuan Bac, Tri An, Tan An will be paid by their employers according to the Region I minimum wage of 4.96 million VND/month (23,800 VND/hour).

The communes and wards belonging to Region II with an RMW of 4.41 million VND/month (21,2000 VND/hour) include the wards of Minh Hung, Chon Thanh, Dong Xoai, Binh Phuoc and the communes of Xuan Que, Cam My, Song Ray, La Nga, Dinh Quan, Phu Vinh, Phu Hoa, Ta Lai, Nam Cat Tien, Tan Phu, Phu Lam, Nha Bich, Tan Quan, Thuan Loi, Dong Tam, Tan Loi, Dong Phu, Dak Lua, Thanh Son.

The communes of Thien Hung, Hung Phuoc, Phu Nghia, Da Kia, Phuoc Son, Nghia Trung, Bu Dang, Tho Son, Dak Nhau, Bom Bo, Bu Gia Map, Dak O belong to the Region IV minimum wage of 3.45 million VND/month (16,600 VND/hour). The remaining communes and wards are adjusted by the Region III RMW of 3.86 million VND/month (18,600 VND/hour).

Paying based on place of residence or place of work?

After the merger of the two provinces, labor migration between localities is inevitable, especially for labor moving from regions with lower RMW to regions with higher RMW, or vice versa. Many workers wonder if the law bases the regional minimum wage on where the employee lives (resides) or where they work?

For example, Dieu Thi Ly of S'tieng ethnic group lives in Phu Rieng commune (Region III) but works in Thuan Loi commune (Region II). Now she wants to find a job closer to home, so will her regional minimum wage change? Or Phung Van Tinh of Hoa ethnic group lives in Phu Trung commune (Region III) but works for a company in Thong Nhat commune (Region I). To expand production, the company just opened a new branch in Phu Trung commune (Region III) and encouraged him to work at the branch closer to home. However, he is still hesitant and has not dared to decide, fearing that if the company applies the regional minimum wage at the workplace, he will be disadvantaged.

Answering the above questions from employees, lawyer Tran Van Giap of the Provincial Bar Association shared that although labor law stipulates that employers operating in an area belonging to a certain region must apply the minimum wage specified for that area (Point a, Clause 3, Article 3 of Decree 74). However, the law allows employees and employers to agree on wages and salaries, and such agreements must not be unfavorable to the employee, meaning they cannot agree to pay a salary lower than the regional minimum wage applicable at the employee's workplace. Therefore, Ly and Tinh still have the right to agree with the company to apply a higher regional minimum wage, or one equal to where they previously worked.

Reported by Doan Phu