Proposal to increase regional minimum wage to 2.7 million VND/month

That is the content proposed by the Ministry of Labor, War Invalids and Social Affairs indraftDecree regulating regional minimum wages for employees working in companies, enterprises, cooperatives, farms, households, individuals and agencies and organizations that hire workers.

Specifically, the Ministry of Labor, War Invalids and Social Affairs proposed two options for adjusting the regional minimum wage applicable to employees working in companies, enterprises, cooperatives, farms, households, individuals and agencies and organizations that hire workers.

According to option 1: The level of 2,700,000 VND/month applies to enterprises operating in areas in region I. For enterprises in region II, the level is 2,400,000 VND/month; region III, the level is 2,130,000 VND/month and region IV is 1,930,000 VND/month.

According to option 2, the draft proposes: VND 2,500,000/month applies to enterprises operating in region I; VND 2,250,000/month applies to region II; VND 1,950,000/month applies to region III; and VND 1,800,000/month applies to enterprises operating in regions IV.

The regional minimum wage is the lowest wage that serves as the basis for businesses and employees to negotiate wages paid to employees.

At the same time, the draft stipulates that the lowest wage paid to trained workers, including workers trained by enterprises themselves, must be at least 7% higher than the prescribed regional minimum wage.

The regional minimum wage is used as the basis for establishing wage levels in the wage scale, wage table, wage allowances, calculating wage levels stated in labor contracts and implementing other regimes established and issued by enterprises under the authority prescribed by labor law.

The draft also encourages businesses to pay workers higher than the prescribed regional minimum wage.

This Decree is expected to take effect from January 1, 2013.

According to (Chinhphu.vn) - LT