Employees Suspended: Should Regional Minimum Wages be Paid According to the Company's Head Office or Branch?

According to Clause 1, Article 4 of Decree 90/2019/ND-CP stipulating the principles for applying regional minimum wage levels based on administrative divisions:

Enterprises operating in any locality shall apply the regional minimum wage rate prescribed for that locality. In case enterprises have units or branches operating in localities with different regional minimum wage levels, the unit or branch operating in any locality shall apply the regional minimum wage rate prescribed for that locality.

And according to Clause 1, Article 3 of this Decree, the regional minimum wage levels applicable to employees working in enterprises are as follows:

- VND 4,420,000/month, applied to enterprises operating in the locality belonging to region I.

- VND 3,920,000/month, applied to enterprises operating in the locality belonging to region II.

Therefore, employees working in any locality will be subject to the minimum wage applicable to that locality. Hence, in case the employee is working at a branch in the locality belonging to region II, the unit shall pay the regional minimum wage of region II when the employee ceases work.

Respectfully!