Increasing the region-based minimum wage in Vietnam in 2017 is an issue that has garnered significant attention from the public because it greatly impacts the lives of workers as well as the activities of enterprises.
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Region-based minimum wage is the basis for enterprises and employees to negotiate and pay wages, including the wage paid to employees working under normal working conditions, ensuring full working hours in the month and completing the labor norms or agreed work.
Based on the region-based minimum wage, adjustments to the wage levels in the wage scale, the wages recorded in the labor contract, and the wages paid to employees are determined accordingly. Ensuring compliance with labor law regulations and reasonable wage relations between unskilled workers and trained workers and highly skilled workers, between newly recruited workers and those with seniority in the enterprise.
Despite several wage increases, the current region-based minimum wage still does not meet the minimum needs of employees. The Ministry of Labor, Invalids, and Social Affairs recently proposed an increase in the region-based minimum wage with an increase ranging from 180,000 VND to 250,000 VND/month depending on the region starting from January 1, 2017. Let's look back at the minimum wage levels over the years in the following table:
Unit: VND/month
| Implementation Period | Region I | Region II | Region III | Region IV |
| January 1, 2010 - December 31, 2010 Decree 97/2009/ND-CP |
980,000 | 880,000 | 810,000 | 730,000 |
| January 1, 2011 - October 1, 2011 Decree 108/2010/ND-CP |
1,350,000 | 1,200,000 | 1,050,000 | 830,000 |
| October 1, 2011 - December 31, 2012 Decree 70/2011/ND-CP |
2,000,000 | 1,780,000 | 1,550,000 | 1,400,000 |
| January 1, 2013 - December 31, 2013 Decree 103/2012/ND-CP |
2,350,000 | 2,100,000 | 1,800,000 | 1,650,000 |
| January 1, 2014 - December 31, 2014 Decree 182/2013/ND-CP |
2,700,000 | 2,400,000 | 2,100,000 | 1,900,000 |
| January 1, 2015 - December 31, 2015 Decree 103/2014/ND-CP |
3,100,000 | 2,750,000 | 2,400,000 | 2,150,000 |
| January 1, 2016 - December 31, 2016 Decree 122/2015/ND-CP |
3,500,000 | 3,100,000 | 2,700,000 | 2,400,000 |
| January 1, 2017 Draft |
3,750,000 | 3,320,000 | 2,900,000 | 2,580,000 |
To clearly see the changes in the minimum wage over the years, view the following chart:
Thus, the region-based minimum wage for 2017 increases as follows:
- Region I: 3,750,000 VND/month (increase of 250,000 VND/month compared to 2016);
- Region II: 3,320,000 VND/month (increase of 220,000 VND/month compared to 2016);
- Region III: 2,900,000 VND/month (increase of 200,000 VND/month compared to 2016);
- Region IV: 2,580,000 VND/month (increase of 180,000 VND/month compared to 2016).
In addition to the wage increase, the draft Decree regulating the region-based minimum wage for employees working in enterprises, unions of cooperatives, cooperatives, cooperative groups, farms, households, individuals, and agencies and organizations utilizing labor contracts also includes changes in the areas applying the region-based minimum wage.
| Area | 2016 | 2017 |
| Tan Thanh District, Ba Ria - Vung Tau Province | Region II | Region I |
| Song Cong City, Pho Yen Town, Thai Nguyen Province | Region III | Region II |
| Hoi An City, Tam Ky City, Quang Nam Province | Region III | Region II |
| Tra Vinh City, Tra Vinh Province | Region III | Region II |
| Que Son District, Thang Binh District, Quang Nam Province | Region IV | Region III |
| Duyen Hai Town, Tra Vinh Province | Region IV | Region III |
| Giang Thanh District, Kien Giang Province | Region III | Region IV |
If the Draft is approved, it will officially apply the above region-based minimum wage from January 1, 2017.
