What Employees Need to Know About Regional Minimum Wages

Duy Thinh

12:25, 11/07/2024

The regional minimum wage is the basis for employees to negotiate with employers about the wage level. Therefore, to ensure their best interests when negotiating wages with employers, employees need to understand the following regulations:

Regional Minimum Wage Levels:

- VND 3,750,000/month, applicable to enterprises operating in Region I (expected to increase to VND 3,980,000 from January 01, 2018);- VND 3,320,000/month, applicable to enterprises operating in Region II (expected to increase to VND 3,530,000);- VND 2,900,000/month, applicable to enterprises operating in Region III (expected to increase to VND 3,090,000);- VND 2,580,000/month, applicable to enterprises operating in Region IV (expected to increase to VND 2,760,000).

(The locations in Regions I, II, III, IV are stipulated in the Appendix issued together with Decree 153/2016/ND-CP)

Principles for Applying Regional Minimum Wage

- Workers performing the simplest jobs must not be paid less than the regional minimum wage.- For workers performing jobs that require vocational training or apprenticeship, the wages must be at least 7% higher than the regional minimum wage.

Other Notes:

- When applying the regional minimum wage, employers must not abolish or reduce wages when workers work overtime, at night, or under strenuous, hazardous conditions...- Allowances, subsidies, and bonuses will be implemented by the employer according to the agreement in the contract.

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