4 Principles for Applying Regional Minimum Wage

Decree 153/2016/ND-CP stipulates the principles for applying regional minimum wage as follows:

First, Enterprises operating in any locality shall apply the wage rate applicable to that locality. In case an enterprise has multiple branches or units in various localities with different regional minimum wages, each branch or unit shall apply the minimum wage of its respective locality.

Second, Enterprises operating in export processing zones, industrial parks, economic zones, and high-tech zones spread across multiple localities with different regional minimum wages shall apply the wage rate of the locality with the highest regional minimum wage.

Third, Enterprises operating in localities that undergo changes or separations shall continue to apply the wage rate of the old locality before the name change or separation until the Government of Vietnam issues new regulations.

Fourth, Enterprises operating in newly established localities formed from one or multiple localities with different regional minimum wages shall apply the regional minimum wage of the locality with the highest regional minimum wage.

In cases where enterprises operate in localities that are newly established as cities under provincial jurisdictions formed from one or multiple localities in Region IV, the regional minimum wage applied shall be that of Region III localities.

According to the proposal of the National Wage Council, the minimum wage for 2018 (expected to take effect from January 1, 2018) will be adjusted to increase as follows:

Unit: VND

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