The Government of Vietnam promulgated Decree 153/2016/ND-CP regulating the regional minimum wages for employees working under labor contracts in 2017. Here are the new points regarding the regional minimum wages in 2017.
Article table of contents
Regional minimum wage increase from VND 180,000 - VND 250,000 per month
The regional minimum wage applies to employees working under labor contracts as stipulated by the Labor Code. The regional minimum wage for each region is shown in the table below:
| Region | Regional Minimum Wage for 2016 (From January 01, 2016 to December 31, 2016) |
Regional Minimum Wage for 2017 (Effective from January 01, 2017) |
Increase Compared to 2016 |
| I | VND 3,500,000 per month | VND 3,750,000 per month | VND 250,000 per month |
| II | VND 3,100,000 per month | VND 3,320,000 per month | VND 220,000 per month |
| III | VND 2,700,000 per month | VND 2,900,000 per month | VND 200,000 per month |
| IV | VND 2,400,000 per month | VND 2,580,000 per month | VND 180,000 per month |
Supplementing entities for application
Decree 122/2015/ND-CP of Vietnam's Government stipulates that it applies to employees working in enterprises, unions of cooperatives, cooperatives, cooperative groups, farms, households, individuals, and agencies or organizations that employ workers under labor contracts as stipulated by the Labor Code. However, Decree 153 stipulates that employees working under labor contracts as defined in the 2012 Labor Code are subject to the provisions of Decree 153, regardless of the type of enterprise, agency, organization, or individual they are employed with.
According to Clause 1, Article 2 of Decree 153/2016/ND-CP of Vietnam's Government, additional subjects of application include employees working under labor contracts as regulated by the Labor Code.
Changes in the application of regional mnimum wage
- Remove the phrase "untrained" concerning the regulation ensuring that the wage of employees performing the simplest tasks is not lower than the regional minimum wage (as stipulated at Point a, Clause 1, Article 5 of Decree 153/2016/ND-CP).
- Add the phrases "performing tasks requiring skilled labor" and "trained according to" concerning the regulation ensuring that the wage of employees who have undergone vocational training is at least 7% higher than the regional minimum wage (as stipulated at Point b, Clause 1, Article 5 of Decree 153/2016/ND-CP).
Change in the geographical areas where the minimum wage applies
Decree 153/2016/ND-CP stipulates the regional minimum wage for employees working under labor contracts, replacing Decree 122/2015/ND-CP, which stipulated the regional minimum wage for employees working in enterprises, unions of cooperatives, cooperatives, cooperative groups, farms, households, individuals, and agencies or organizations employing workers under labor contracts with several changes to the applied regions as follows:
| Region | 2016 | 2017 |
| Tan Thanh District, Ba Ria - Vung Tau Province | Region II | Region I |
| Song Cong City, Pho Yen Town, Thai Nguyen Province Hoi An City, Quang Nam Province Tra Vinh City, Tra Vinh Province |
Region III | Region II |
| Que Son, Thang Binh Districts, Quang Nam Province Duyen Hai Town, Tra Vinh Province |
Region IV | Region III |
| Giang Thanh District, Kien Giang Province | Region III | Region IV |
