FROM OCTOBER 01, REGION-BASED MINIMUM WAGE LEVELS ARE FORMALLY INCREASED TO VND 2 MILLION/MONTH
The Government formally agreed to increase the region-based minimum wage levels more 48% (in region IV, increased more 68%) compared current regulations, applied to all domestic and foreign regions.
On August 22, 2011, the Government issued the Decree No. 70/2011/ND-CP providing for region-based minimum wage levels for laborers working for Vietnamese companies, enterprises, cooperatives, cooperative groups, farms, households and individuals and other organizations employing laborers, takes effect on on October 05, 2011 and replaces the Decree No. 107/2010/ND-CP; Decree No. 108/2010/ND-CP dated October 29, 2010.
The Decree provides for region-based minimum wage levels applied from October 01, 2011 to the end of December 31, 2012 as follows: the level of VND 2.000.000/month applies to enterprises operating in localities of region I; the level of VND 1.780.000/month applies to enterprises operating in localities of region II; the level of VND 1.550.000/month applies to enterprises operating in localities of region III; the level of VND 1.400.000/month applies to enterprises operating in localities of region IV.
The region-based minimum wage levels are the minimum wage levels for enterprises and laborers to take as a basis for negotiating salaries paid to laborers and they are applied for calculating wage levels in wage scales and tables, wage-based allowances and wage levels to be indicated in labor contracts, and implementing other regimes they adopt and issue according to their competence prescribed by the labor law.
The lowest wage levels paid to laborers who have attended vocational training (including training conducted by enterprises themselves) must be at least 7% higher than the region-based minimum wage levels of this Decree; and encourage enterprises to pay wages to laborers higher than minimum wage levels.