Decree 157/2018/ND-CP stipulates the regional minimum wage for employees working under labor contracts.

Decree 157/2018/ND-CP This Decree stipulates the regional minimum wage applicable to employees working under labor contracts as prescribed by the Labor Code.

The enterprises, cooperatives, cooperative unions, cooperative groups, farms, households, agencies, organizations, and individuals specified in Clauses 2, 3, and 4 of this Article are hereinafter collectively referred to as enterprises.

Businesses operating in areas newly established from one or more areas with different regional minimum wage levels shall apply the regional minimum wage level of the area with the highest minimum wage. In cases where a business operating in a city directly under a provincial administration is newly established from one or more areas belonging to Region IV, the minimum wage level stipulated for the remaining cities directly under provincial administration in Section 3 of the Appendix attached to this Decree shall apply.

When implementing the regional minimum wage stipulated in this Decree, enterprises are not allowed to eliminate or reduce wage entitlements for employees working overtime, at night, or in arduous or hazardous working conditions, or entitlements to in-kind compensation for positions involving arduous or hazardous work, and other entitlements as prescribed by labor law. Other allowances, supplements, subsidies, and bonuses stipulated by the enterprise shall be implemented according to agreements in labor contracts, collective labor agreements, or the enterprise's regulations.

Download the full Decree 157/2018/ND-CP: https://goo.gl/rgCRox

DECREE

REGIONAL MINIMUM WAGE REGULATIONS FOR WORKERS EMPLOYED UNDER LABOR CONTRACTS

Pursuant to the Law on Organization of the Government dated April 30, 2013, 19 year of 6;

Based on the Labor Code dated June 18, 2012;

Based on the Enterprise Law dated November 26, 2014;

As requested by the Minister of Labour, Invalids and Social Affairs;

The government has issued a decree stipulating the regional minimum wage for employees working under labor contracts.

Article 1. Scope

This Decree stipulates the regional minimum wage applicable to employees working under labor contracts as prescribed by the Labor Code.

Article 2. Subject of application

1. Workers are employed under labor contracts as stipulated by the Labor Code.
2. Businesses are established, organized, managed, and operate in accordance with the Enterprise Law.
3. Cooperatives, cooperative unions, cooperative groups, farms, households, individuals, and other organizations in Vietnam that employ workers under labor contracts.
4. Foreign agencies, organizations, international organizations, and foreign individuals in Vietnam who employ workers under labor contracts (except in cases where international treaties to which the Socialist Republic of Vietnam is a party stipulate otherwise than the provisions of this Decree).

The enterprises, cooperatives, cooperative unions, cooperative groups, farms, households, agencies, organizations, and individuals specified in Clauses 2, 3, and 4 of this Article are hereinafter collectively referred to as enterprises.

Article 3. Regional Minimum Wage

1. The regulations on regional minimum wage applicable to employees working in enterprises are as follows:

a) A rate of VND 4.180.000/month applies to businesses operating in areas classified as Region I;

b) A rate of VND 3.710.000/month applies to businesses operating in areas classified as Region II;

c) A rate of VND 3.250.000/month applies to businesses operating in areas classified as Region III;

d) A rate of VND 2.920.000/month applies to businesses operating in areas classified as Region IV.

2. The areas to which regional minimum wage rates apply are defined according to administrative units at the district, town, and city levels within provinces. The list of areas to which minimum wage rates apply in Region I, Region II, Region III, and Region IV is specified in the Appendix attached to this Decree.

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Article 4. Principles for applying regional minimum wage levels based on geographical area.

1. Businesses operating in a particular area must apply the minimum wage rate prescribed for that area. If a business has units or branches operating in areas with different minimum wage rates, each unit or branch must apply the minimum wage rate prescribed for the area in which it operates.
2. Businesses operating in industrial parks and export processing zones located in areas with different regional minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage.
3. Businesses operating in areas where the name has changed or the area has been split will temporarily apply the regional minimum wage rate applicable to the area before the name change or split until the Government issues new regulations.
4. Businesses operating in areas newly established from one or more areas with different regional minimum wage levels shall apply the regional minimum wage level of the area with the highest minimum wage. In cases where a business operating in a city directly under a provincial administration is newly established from one or more areas belonging to Region IV, the minimum wage level stipulated for the remaining cities directly under provincial administration in Section 3 of the Appendix attached to this Decree shall apply.

Article 5. Application of regional minimum wage levels

1. The regional minimum wage stipulated in Article 3 of this Decree is the lowest level serving as a basis for enterprises and employees to negotiate and pay wages. The wage paid to employees working under normal working conditions, ensuring sufficient normal working hours per month and completing the agreed-upon labor quota or work, must ensure:

a) Not lower than the regional minimum wage for workers performing the simplest tasks;

b) At least 7% higher than the regional minimum wage for workers performing jobs requiring vocational training or apprenticeship as prescribed in Clause 2 of this Article.

2. Workers who have undergone vocational training include:

a) Individuals who have been awarded vocational certificates, vocational diplomas, professional high school diplomas, vocational high school diplomas, college diplomas, general university certificates, university diplomas, bachelor's degrees, postgraduate degrees, master's degrees, or doctoral degrees as stipulated in Government Decree No. 90/CP dated November 24, 1993, regulating the framework structure of the national education system, the system of diplomas and certificates in education and training;

b) Individuals who have been awarded a professional high school diploma, vocational training diploma, college diploma, university diploma, master's degree, doctoral degree; vocational education diplomas and certificates; higher education diplomas and continuing education diplomas and certificates as prescribed in the Education Law of 1998 and the Education Law of 2005;

c) Individuals who have been awarded certificates under regular vocational training programs, basic vocational certificates, intermediate vocational diplomas, advanced vocational diplomas, or have completed vocational training programs under apprenticeship contracts as stipulated in the Vocational Training Law;

d) Individuals who have been granted a national vocational skills certificate in accordance with the provisions of the Employment Law;

d) Individuals who have been awarded diplomas or certificates of vocational education at the elementary, intermediate, or advanced levels; continuing education; and other vocational training programs as prescribed in the Law on Vocational Education;

e) Persons who have been awarded a diploma at the higher education level as prescribed by the Law on Higher Education;

g) Individuals who have been awarded diplomas or certificates from foreign educational institutions;

h) Individuals who have received vocational training from the enterprise or have self-taught a trade and have been tested and assigned by the enterprise to work in a job requiring vocational training.

3. When implementing the regional minimum wage stipulated in this Decree, enterprises are not allowed to eliminate or reduce wage entitlements for employees working overtime, working at night, working in arduous or hazardous conditions, or in-kind compensation for positions involving arduous or hazardous work, and other entitlements as prescribed by labor law. Other allowances, supplements, subsidies, and bonuses stipulated by the enterprise shall be implemented according to the agreement in the labor contract, collective labor agreement, or the enterprise's regulations.

Article 6. Effective date and responsibility for implementation

1. This Decree takes effect from January 1, 2019. Government Decree No. 141/2017/ND-CP dated December 7, 2017, stipulating the regional minimum wage for employees working under labor contracts, ceases to be effective from the date this Decree takes effect.
2. Ministers, heads of ministerial-level agencies, heads of government agencies, chairpersons of provincial and city People's Committees, and relevant agencies and enterprises are responsible for implementation.