This is a notable content regulated in the Draft Decree stipulating the regional minimum wage for employees working under labor contracts, expected to take effect from January 1, 2020, replacing Decree 157/2018/ND-CP.
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To be specific, according to the content in the Draft, compared to the current regional minimum wage levels stipulated in Decree 157/2018/ND-CP, the regional minimum wages in 2020 for employees working in enterprises operating in regions will be adjusted as follows:
- Region I: From January 01, 2020, it will be 4,420,000 VND/month, currently 4,180,000 VND/month (increases by 240,000 VND/month).
- Region II: From January 01, 2020, it will be 3,920,000 VND/month, currently 3,710,000 VND/month (increases by 210,000 VND/month).
- Region III: From January 01, 2020, it will be 3,430,000 VND/month, currently 3,250,000 VND/month (increases by 180,000 VND/month).
- Region IV: From January 01, 2020, it will be 3,070,000 VND/month, currently 2,920,000 VND/month (increases by 150,000 VND/month).
Enterprises operating in any region will apply the regional minimum wage stipulated for that region.
In cases where an enterprise has units or branches operating in regions with different regional minimum wages, each unit or branch will apply the regional minimum wage stipulated for the region it is operating in.
Thus, it can be seen that if the Draft Decree is approved, from January 01, 2020, the regional minimum wage will increase ranging from 150,000 VND/month to 240,000 VND/month, with the highest increase of 240,000 VND/month applied to employees working in enterprises operating in Region I.
In addition, the Draft also changes some regions applying the regional minimum wage in 2020. Details can be found HERE.
Nguyen Trinh
