Minimum wage to increase from January, 2015

The newly-approved decree, which will replace Decree 182/2013/NÐ-CP dated November 14, 2013, stipulates new minimum salary levels for labourers working in all domestic or foreign-invested businesses in four different regions across the country ranked according to the socio-economic development level of each region.

Under the new decree, employees in region I, covering the urban districts of Hanoi and Ho Chi Minh City, will receive the highest minimum salary of VND3.1 million a month, while those in region II, consisting of provincial-level cities, will earn a minimum monthly salary of VND2.75 million. The figures are VND2.4 million and VND2.15 million for region III and IV, respectively.

The new salary levels are VND250,000-400,000 per month higher than current bass line wages.

Currently, the minimum monthly wage for Zones 1, 2, 3 and 4 is VND1.9 million, VND2.1 million, VND2.4 million, and VND2.7 million, respectively.

The regional minimum wage is the bass figure for businesses and workers to refer to when negotiating salaries. Allowances and social benefits are also calculated based on the minimum wage, in accordance with the Labour Code.

(Source:Nhan Dan)