Will the region-based minimum wages in Vietnam change in 2021?

Region-based minimum wages is known as the lowest level as a basis for enterprises and employees to negotiate and pay wages. Specifically, the region-based minimum wages applied to employees working in enterprises are specified as follows:

- For enterprises located in region I: VND 4,420,000/month.

- For enterprises located in region II: VND 3,920,000/month.

- For enterprises located in region III: VND 3,430,000/month.

- For enterprises located in region IV: VND 3,070,000/month.

The subregions referred to in this document are district-level administrative divisions. The list of region I, region II, region III and region IV is provided in the Appendix enclosed with the Decree No. 90/2019/NĐ-CP of the Vietnam’s Government.

The Decree No. 90/2019/NĐ-CP officially takes effect from January 01, 2020 and has been applied up to now. From 2010 until now, the region-based minimum wages has changed continuously over the years. So, will the region-based minimum wages in 2021 change?

Pursuant to Point a Clause 1 Article 96 of the Decree No. 145/2020/NĐ-CP of the Vietnam’s Government, region-based minimum wages are mentioned as follows:

Article 96. Benefits and operating conditions of labor mediators

1. Labor mediators are entitled to:

a) A remuneration of 5% of the average of applicable monthly minimum wages of all regions prescribed by the Government if he/she is working under a employment contract (from January 01, 2021, the region-based minimum wages prescribed in the Government’s Decree No. 90/2019/ND-CP dated November 15, 2019 shall apply) for each day of performing the labor mediator’s duties as assigned by a competent authority.

The People’s Committees of provinces may propose benefits that are higher than those specified in this Point to People’s Councils of the same provinces within the budget of their provinces;

…

Concurrently, pursuant to Clause 1 Article 103 of the Decree No. 145/2020/NĐ-CP of the Vietnam’s Government:

Article 103. Benefits and operating conditions of labor arbitrators and labor arbitration councils

1. Labor arbitrators are entitled:

a) An allowance of 5% of the average of applicable monthly minimum wage of all regions prescribed by the Government if he/she is working under a employment contract (from January 01, 2021, the region-based minimum wages prescribed in the Government’s Decree No. 90/2019/ND-CP dated November 15, 2019 shall apply) for each day of studying case files, collecting evidence and attending meetings to settle labor disputes as assigned.

The People’s Committees of provinces may propose benefits that are higher than those specified in this Point to People’s Councils of the same provinces within the budget of their provinces;

…

From the above provisions, it can be seen that from 2021, the region-based minimum wages will continue to apply as prescribed in the Decree No. 90/2019/NĐ-CP. For details of region-based minimum wages of 63 provinces and cities of Vietnam in 2021, please see more here.

Thuy Tram

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