Regional Minimum Wages in 2019

Tue 18/12/2018

Official REGIONAL minimum wages applicable from 01/01/2019 On 16/11/2018, the Government issued Decree 157/2018 / ND-CP regulating the minimum regional wage levels for laborers working under labor contracts. Accordingly, the regional minimum wage effective from 01/01/2019 will increase between ranges VND160,000 to VND200,000, specifically as follows: – For employees working for enterprises operating in Zone I: 4,180,000 VND / month […]

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Official REGIONAL minimum wages applicable from 01/01/2019

On 16/11/2018, the Government issued Decree 157/2018 / ND-CP regulating the minimum regional wage levels for laborers working under labor contracts.

Accordingly, the regional minimum wage effective from 01/01/2019 will increase between ranges VND160,000 to VND200,000, specifically as follows:

– For employees working for enterprises operating in Zone I: 4,180,000 VND / month (an increase of 200,000 VND compared to the current regulations in Decree 141/2017 / ND-CP);

– For employees working for enterprises operating in Zone II: 3.710.000 VND / month (an increase of 180,000 VND compared to Decree 141);

– For employees working for enterprises operating in Zone III: 3,250,000 VND / month (an increase of 160,000 VND compared to Decree 141);

– For employees working for enterprises operating in Zone IV: 2,920,000 VND / month (an increase of 160,000 VND compared to Decree 141).

Above are the minimum regional wage basis for labor contract negotiations.

IMPACT: the increments of regional minimum wages will impact the contributions to the mandatory Unemployment Insurance for those whose salary exceeds 20 times the previous minimum regional wage (for e.g.. previous threshold was 3,980,000 x 20 for Zone I)