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Regional Minimum Wage to Sise Soon

Dec 28, 2016 203
 Regional Minimum Wage to Sise Soon

From January next year, regional minimum wages for employees working under labor contracts will be VND 180,000-250,000 per month higher than those currently applied.


Under Government Decree No. 153/2016/ND-CP of November 14, minimum wages will be raised to VND 3.75 million, 3.32 million, 2.9 million and 2.58 million, respectively, for employees in regions I, II, III and IV.

Employees who work for an enterprise’s units or branches based in localities where different regional minimum wages are applied will be paid wages based on the minimum wages prescribed for the regions where their units or branches are based.

An enterprise operating in an industrial park, economic zone or export processing zones or a hi-tech park located in different localities applying different regional minimum wages may apply the highest minimum wage among them.

The new decree prohibits employers from abolishing or reducing wage-based allowances for their employees who work overtime, at night or under heavy or hazardous conditions. Other allowances and bonuses must be paid as agreed upon in labor contracts, collective labor agreements or internal regulations of employers.

The new decree replaces Decree No. 122/2015/ND-CP of November 14, 2015.


Source: Vietnam Law & Legal Forum