Regional minimum wage to increase in January 2019
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Regional minimum wage to increase in January 2019 (16/12/2018)
The Government issued Decree No. 157/2018 / ND-CP regulating the regional minimum wage for laborers working under labor contracts. Accordingly, the regional minimum wage will be increased to 2,920,000 VND to 4,180,000 VND.
 
The objects include laborers working under labor contracts, Enterprises established and managed and operated under the Enterprise Law, cooperatives, unions of cooperatives households, individuals and other organizations of Vietnam, Foreign agencies and organizations, international organizations...
 
The regional minimum wage will rise to VND4.18 million per month (roughly US$180) for Region I, up VND200,000; VND3.71 million (around US$160) for Region II, up VND180,000; VND3.25 million (approximately US$140) for Region III, up VND160,000; and VND2.92 million (US$125.5) for Region IV, up VND160,000.
 
The Decree stipulates that enterprises operating in any area shall apply the regional minimum wage for such area. If enterprises have units or branches operating in geographical areas with different minimum wage levels in different regions, their branches or branches shall operate in such localities and apply the regional minimum wage levels prescribed for geographical areas. 
 
The enterprises operating in industrial parks and export processing zones located in areas with different minimum wage levels in different regions shall apply according to areas with the highest minimum wage levels. 
 
The enterprises operating geographical areas with the changed name or splitting shall temporarily apply the regional minimum wage levels prescribed for geographical areas before changing until the Government issued new regulations. 
 
The enterprise operating in newly established localities from different localities with different minimum wage levels shall apply the highest regional minimum wage levels.
 
This minimum wage level is the lowest level which shall be agreed upon by the enterprise and laborer under normal working conditions. The wage for labors must be: not least than the minimum regional wage, at least 7% higher than the regional minimum wage. 
 
When applying this regional minimum wage, the enterprises can't cut their wage regimes of overtime working, night working, working under dangerous conditions. Allowances, supplements, and bonuses shall be determined by the enterprise as agreed upon in the labor contract

Translator: Nhat Ha

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