The new regional minimum wage is about 180,000 – 250,000 VND/month higher than the current wage…
Official wage increase for workers starting in 2017.
When implementing the regional minimum wage stipulated in this Decree, businesses are not allowed to eliminate or reduce wage benefits for employees working overtime, working at night, or working in arduous or hazardous conditions.
The regional minimum wage will officially be adjusted upwards from January 1, 2017, ranging from 2,580,000 to 3,750,000 VND per month for employees working under labor contracts.
This is a notable point of Decree 153/2016, which stipulates the regional minimum wage for employees working under labor contracts, recently issued by the Government.
Maximum increase of 250,000 VND/month
Accordingly, the applicable subjects include: Employees working under labor contracts as prescribed by the Labor Code; enterprises established, organized, managed, and operating under the Enterprise Law; cooperatives, cooperative unions, partnerships, farms, households, individuals, and other Vietnamese organizations that employ workers under labor contracts; foreign agencies, organizations, international organizations, and foreign individuals in Vietnam that employ workers under labor contracts (except in cases where international treaties to which Vietnam is a party stipulate otherwise than the provisions of this Decree).
The regional minimum wage applicable to employees working in businesses from January 1, 2017, is as follows:
Region 1: 3,750,000 VND/month; Region 2: 3,320,000 VND/month; Region 3: 2,900,000 VND/month; Region 4: 2,580,000 VND/month.
Thus, the new regional minimum wage is approximately 180,000 – 250,000 VND/month higher than the current wage.
The decree clearly states that 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.
Businesses operating in industrial parks, export processing zones, economic zones, and high-tech zones located in areas with different regional minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage.
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.
Businesses operating in areas newly established from one or more areas with different regional minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage. In cases where a business operating in a city under provincial administration is newly established from one or more areas belonging to Region IV, the minimum wage level applicable to the remaining city under provincial administration shall apply.
No reduction in pay for overtime work.
The decree also clarifies that the aforementioned regional minimum wage is the lowest level serving as a basis for businesses and employees to negotiate and pay wages. Specifically, 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: it is not lower than the regional minimum wage for employees performing the simplest tasks; and it is at least 71% higher than the regional minimum wage for employees performing tasks requiring vocational training or apprenticeship as prescribed.
Based on the regional minimum wage stipulated above and the terms agreed upon in the labor contract with the employee, collective labor agreement, or enterprise regulations, the enterprise, in coordination with the grassroots trade union and employees, shall agree upon and determine the adjustment of wage levels in the wage scale, wage table, wage level stated in the labor contract, and wage paid to employees to ensure compliance with labor laws and a reasonable wage correlation between untrained and trained workers and workers with high professional and technical qualifications, and between newly recruited and long-term employees of the enterprise.
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, in-kind compensation for positions involving arduous or hazardous work, and other entitlements as prescribed by labor law.
Other allowances, supplementary payments, 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.
Source vneconomy.vn
