The government has just issued Decree 153/2016/ND-CP stipulating the regional minimum wage applicable to employees working under labor contracts in accordance with the Labor Code.
Regional minimum wage levels in 2017
Accordingly, Decree 153/2016 uniformly increased the regional minimum wage for workers employed in enterprises in regions I, II, III, and IV as follows:
- 3.750.000 VND/month for Zone I (Previous rate was 3.500.000 VND/month);
- 3.320.000 VND/month for Zone II (Previous rate was 3.100.000 VND/month);
- 2.900.000 VND/month for Zone III (Previous rate was 2.700.000 VND/month);
- 2.580.000 VND/month for Zone IV (Previous rate was 2.400.000 VND/month);
Subjects to whom the regional minimum wage for 2017 applies.
The above regional minimum wage, according to Decree No. 153/2016, applies to employees working under labor contracts in enterprises, cooperatives, cooperative unions, households, partnerships, and individuals, organizations, and agencies employing workers under labor contracts.
Principles for applying regional minimum wage levels based on geographical area.
Some principles for applying the regional minimum wage according to Decree No. 153/ND-CP are as follows:
- Businesses operating in a particular region must apply the minimum wage of that region. Similarly, units and branches of a business located in a particular region must apply the minimum wage of that region.
- Decree 153 stipulates that the highest regional minimum wage rate shall apply to newly established businesses operating in areas with different regional minimum wage rates; and to businesses located in industrial parks, export processing zones, economic zones, and high-tech zones situated in regions with different regional minimum wage rates.
- Businesses in areas that have been renamed or split will apply the regional minimum wage as it was before the change until new regulations are issued.
Applying the regional minimum wage as stipulated in Decree No. 153/ND-CP
- Not lower than the regional minimum wage for workers performing the simplest tasks;
- At least 7% higher than the regional minimum wage for workers performing jobs requiring vocational training or apprenticeship.
Decree 153/2016/ND-CP also stipulates that the new regional minimum wage will be applied in regions I, II, III, and IV from January 1, 2017.
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