Sourcing: Minimum wage increase in South Korea and Vietnam in 2024
The South Korean minimum wage had increased on 1 January 2024 and the Vietnamese regional minimum wage was expected to increase by 6 per cent in July 2024.
Since 1 January 2024, the minimum wage in South Korea has increased slightly from 9 620 South Korean won (KRW) per hour, or about 6.72 euros in 2023 to 9 860 KRW, or about 6.88 euros on 1 January 2024. The monthly wage for 209 hours of work will thus be increased to 2,060,740 won, or about 1,440 euros.
Last July, the National Minimum Wage Commission decided to raise the minimum hourly income by 2.5 per cent compared to the previous year, with its entry into force in 2024. This salary applies to all South Korean companies, regardless of their activity.
In Vietnam, the regional minimum wage should increase by6 % in July 2024. The National Wages Council completed the proposed wage increase on 20 December. If the Vietnamese Government approves this proposal, the regional minimum wage will vary according to the four different regions to achieve:
- 4.96 million dongs (VND), or approximately 186 euros, in Region 1 (Hanoi and HCM City urban areas),
- VND 4.41 million, or about 165 euros, in Region 2 (rural areas of Hanoi and HCM City as well as the cities of Can Tho, Da Nang and Hai Phong),
- 3.86 million VND, or about 145 euros, in Region 3 (cities and districts of the provinces of Bac Ninh, Bac Giang, Hai Duong and Vinh Phuc),
- 3.45 million VND, or approximately 129 euros, in Region 4 (other localities).
This is the first increase in two years (cf.Sourcing Vietnam: Minimum wage increase on 1 July 2022). In the light of inflation in the country (4.27 per cent for the first 11 months of the year 2023), a new wage adjustment could take place.
In China, the minimum monthly wage varies according to province. It is the highest in Shanghai, with an amount of RMB 2590 or about EUR 343 per month (cf.Sourcing: minimum wages continue to rise in China).
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Source(s): minimumwage.go.kr | vietnam-briefing.com
Editor(s): C. BEDOUIN