If a person works at a branch of the company in Vietnam, will his/her region-based statutory minimum wage be based on the headquarter or the branch?

If a person works at a branch of the company in Vietnam, will his/her region-based statutory minimum wage be based on the headquarter or the branch?

Article 3, Clause 3 of Decree 38/2022/ND-CP, determination of a subregion as the basis for application of the statutory minimum wages shall be conducted based on the employer’s place of operation. To be specific:

3. Determination of a subregion as the basis for application of the statutory minimum wages shall be conducted based on the employer’s place of operation. To be specific:

a) An employer located in a specific subregion shall apply the respective statutory minimum wage applied thereto. 

b) In the event that an employer has its affiliates and/or branches located in different subregions to which different statutory minimum wages apply, such affiliates and/or branches must apply the respective statutory minimum wages applied thereto.

c) If an employer is located in an industrial park or export processing zone located in the territory containing two or more subregions to which different statutory minimum wages apply, the highest statutory minimum wage shall apply.

d) If an employer is located in a subregion which is renamed or divided, the statutory minimum wage applied to that subregion before it is renamed or divided shall still apply until new regulations promulgated by the Government come into force.

dd) If an employer is located in a subregion which is converted or established from a subregion or by consolidation of two or more subregions to which different statutory minimum wages apply, it shall apply the highest statutory minimum wage.

e) In case an employer is located in a provincial city which is established from one or more subregions in the region IV, it shall apply the statutory minimum wage applied to the remaining provincial cities as prescribed in Clause 3 of the Appendix enclosed herewith.

Based on current regulations in Vietnam, if you are working at a branch in Ham Thuan Bac district, Binh Thuan province, you will be subject to the region-based statutory minimum wage in this area.

If a person works at a branch of the company in Vietnam, will his/her region-based statutory minimum wage be based on the headquarter or the branch? (Image from the Internet)

What is the region-based statutory minimum wage in Ham Thuan Bac district, Binh Thuan province?

In Section 3 of the Appendix List Of Subregions To Which Statutory Minimum Wages Are Applied From July 01, 2022, accompanying Decree 38/2022/ND-CP, it is stipulated as follows:

3. Region III includes the following subregions:

...

- Two suburban districts of Lam Dong Province, including Duc Trong and Di Linh;

- La Gi Town and two suburban districts of Binh Thuan Province, including Ham Thuan Bac and Ham Thuan Nam;

- Phuoc Long Town, Binh Long Town and suburban districts of Binh Phuoc Province, including: Hon Quan, Loc Ninh and Phu Rieng;

...

Article 1, Clause 3 of Decree 38/2022/ND-CP stipulates the minimum wage as follows:

1. The region-based statutory minimum wages per month and per hour paid to employees are provided for as follows:

Based on current regulations in Vietnam, Ham Thuan Bac district, Binh Thuan province belongs to Region III. Therefore, the region-based statutory minimum wage here is 3,640,000 VND/month and 17,500 VND/hour.

Best Regards!