Minimum wage to increase from 2014

Thursday, 21/11/2013

Since January 1, 2014, the monthly minimum wage for employees will increase from VND 1.9 million (US$ 89.3) to VND 2.7 million (US$ 128).

The Government has recently issued Decree 182/2013/ND-CP to replace valid Decree 103/2012/ND-CP, dated December 4, 2012.

The minimum wage will be applied for four different regions in Việt Nam as follows Region I: VND 2.7 million (US$ 128); Region II: VND 2.4 million (US4 114); Region III: VND 2.1 million (US$ 100) and Region IV: VND 1.9 million (US$ 90).

The new salary benchmarks will pick up around VND 250,000 – 350,000 (US$11-16).

Employees of local enterprises, foreign agencies, organizations and foreigners will benefit from the monthly wage increase.

The Decree also encourages enterprises to pay their employees higher than the region-based minimum wages.

The new Decree will take effect on December 31, 2013.

(Source:VGP)