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Regional minimum wages go up

Released at: 14:21, 05/01/2019

Regional minimum wages go up

Photo: vov.vn

New regional minimum wages applied from January 1.

by Linh Chi

Government Decree No. 157/2018/ND-CP dated November 16, 2018 and providing guidelines on regional minimum wages for employees working under labor contracts came into effect on January 1, replacing Decree No. 141/2017/ND-CP.

From January 1, regional minimum wages officially applied to employees working under labor contracts will be as follows:

  • For enterprises located in Region 1: VND4.18 million ($180) per month;
  • For enterprises located in Region 2: VND3.71 million ($160) per month;
  • For enterprises located in Region 3: VND3.25 million ($140) per month; and
  • For enterprises located in Region 4: VND2.92 million ($126) per month.

Compared with the regional minimum wages under Decree 141, the new wages are from VND160,000 ($6.9) to VND200,000 ($8.6) higher per month.

The sub-regions mentioned in the Decree are district-level administrative divisions promulgated in its Appendix. Decree 157 clarifies that enterprises apply the regional minimum wages applicable to the location where the enterprises operates. When branches of an enterprises are located in different regions with different regional minimum wages, the respective minimum wages of the regions where the branches are located should be applied. The highest regional minimum wages will be applied to enterprises operating in industrial parks and export processing zones that have different regional minimum salaries.

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