Decree No. 90/2019/ND-CP stipulating regional minimum wage for employees

DECREE

Prescribing region-based minimum wage levels applicable to employees working under labor contracts

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 18, 2012 Labor Code;

Pursuant to the November 26, 2014 Law on Enterprises;

At the proposal of the Minister of Labor, Invalids and Social Affairs;

The Government promulgates the Decree prescribing region-based minimum wage levels applicable to employees working under labor contracts.

Article 1. Scope of regulation

This Decree prescribes region-based minimum wage levels applicable to employees working under labor contracts as defined in the Labor Code.

Article 2. Subjects of application

1. Employees working under labor contracts as defined in the Labor Code.

2. Enterprises established, organized, managed and operating in accordance with the Law on Enterprises.

3. Vietnamese cooperatives, cooperative unions, cooperative groups, farms, households, individuals and other organizations that employ employees under labor contracts.

4. Foreign agencies and organizations, international organizations and foreigners in Vietnam that employ employees under labor contracts (unless otherwise prescribed by treaties to which the Socialist Republic of Vietnam is a contracting party).

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

Article 3. Region-based minimum wage levels

1. Region-based minimum wage levels applicable to employees working in enterprises are specified as follows:

a/ VND 4,420,000/month, for enterprises operating in localities of region I;

b/ VND 3,920,000/month, for enterprises operating in localities of region II;

c/ VND 3,430,000/month, for enterprises operating in localities of region III;

d/ VND 3,070,000/month, for enterprises operating in localities of region IV.

2. Localities applying region-based minimum wage levels are specified according to administrative units of urban districts, rural districts, towns and provincial cities. The list of localities applying minimum wage levels of regions I, II, III and IV is provided in the Appendix to this Decree.

Article 4. Principles of application of region-based minimum wage levels

1. An enterprise shall apply the region-based minimum wage level prescribed for the locality where it operates. In case an enterprise has units or branches in localities for which different region-based minimum wage levels are prescribed, each unit or branch shall apply the region-based minimum wage level prescribed for the locality where it operates.

2. For enterprises operating in industrial parks or export processing zones in localities for which different region-based minimum wage levels are prescribed, the highest region-based minimum wage level shall be applied.

3. For an enterprise operating in the locality which is renamed or divided, the region-based minimum wage level prescribed for such locality before it is renamed or divided shall temporarily be applied pending the Government’s issuance of new regulations.

4. For an enterprise operating in a locality newly established from one or more than one locality for which different region-based minimum wage levels are prescribed, the highest region-based minimum wage level shall be applied. For an enterprise operating in a provincial city newly established from one or more than one locality of region IV, the region-based minimum wage level prescribed for other provincial cities mentioned in Section 3 of the Appendix to this Decree shall be applied.

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