Vietnam: Update on the statutory pay rate table and regional minimum wage table 2017

Minimum regional wage in 2017

The minimum regional wage applies to employees working under labor contracts as stipulated by the Labor Code. The minimum wage schedule for each region is as follows:

Enterprises cooperate with the grassroots labor union executive committee and employees to agree upon and adjust wage levels within the salary scale, wage table, and the wages specified in labor contracts. This is based on the minimum regional wage and the terms agreed upon in the labor contract, collective bargaining agreement, or the enterprise's regulations.

The application of the minimum regional wage must adhere to the following principles:

- Enterprises operating in a specific locality must apply the minimum regional wage stipulated for that locality. If the enterprise has units or branches operating in areas with different minimum regional wages, the unit or branch shall apply the minimum regional wage stipulated for the locality where it operates.

- For enterprises operating in industrial zones, export processing zones, economic zones, and high-tech zones located in areas with different minimum regional wages, the highest regional minimum wage should be applied.

- If an enterprise operates in an area where the name changes or a division occurs, the former regional minimum wage should be applied until a new provision by the Government of Vietnam is established.

- Enterprises operating in newly established areas formed from one or multiple areas with different regional minimum wages should apply the highest regional minimum wage. If the enterprise operates in a district-level city newly established from one or multiple areas in Region IV, it shall apply the minimum regional wage specified for the other district-level city in Region III, Appendix attached to Decree 153.

Statutory pay rate in 2017

The statutory pay rate applies to officials and public employees, those receiving salaries, allowances, and workers (collectively referred to as salary or allowance recipients). These individuals are employed in agencies, organizations, and public service units of the Communist Party, the State, political and social organizations, and associations subsidized by the state budget at the central, provincial, municipal, district, or lower levels, and in special administrative-economic units and the armed forces.

The statutory pay rate is used as a basis for:

- Calculating salaries on wage scales, allowances, and executing other policies defined by law for the following groups:

+ Officials from the central to district levels as per Clauses 1 and 2, Article 4 of the Law on Officers and Officials 2008 of Vietnam.

+ Commune-level officials as specified in Clause 3, Article 4 of the Law on Officers and Officials 2008.

+ Public employees in public service providers according to the Law on Public Employees 2010 of Vietnam.

+ Individuals employed under labor contract policies, classified according to Decree 204/2004/ND-CP of Vietnam's Government.

+ Workers in organizations supported by the state budget per Decree 45/2010/ND-CP of Vietnam's Government.

+ Officers, professional soldiers, non-commissioned officers, enlisted soldiers, national defense workers, and employees under contract with the People's Army of Vietnam.

+ Officers, non-commissioned officers paid by rank, non-commissioned officers, conscript soldiers, public security workers, and individuals employed under contract with the People's Public Security Forces.

+ Workers in cipher organizations.

+ Non-specialized personnel at the commune level, in hamlets, and residential groups.

- Calculating operational and living allowances as per legal regulations;

- Calculating contributions and policies based on the statutory pay rate.

The 2017 statutory pay rate is applied as follows:

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