Adjusting regional minimum wages from January 1, 2014

The level of 2.7 million VND/month applies to businesses operating in areas in region I.

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Circular 33 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of regional minimum wages applicable to employees working under labor contracts and management officials paid by enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies and organizations that hire workers, states: Regional minimum wages are adjusted from January 1, 2014 as follows:

The level of 2.7 million VND/month applies to enterprises operating in areas of region I; the level of 2.4 million VND/month applies to enterprises operating in areas of region II; the level of 2.1 million VND/month applies to enterprises operating in areas of region III; the level of 1.9 million VND/month applies to enterprises operating in areas of region IV.

In case of a change of name or separation of a locality, the regional minimum wage applicable to the locality before the change of name or separation shall apply; in case of a newly established locality from localities with different regional minimum wages, the regional minimum wage shall apply according to the locality with the highest regional minimum wage; in case of establishment of a city under the province from one or more localities in region IV, the regional minimum wage applicable to localities in region III shall apply.

Enterprises operating in adjacent localities with different regional minimum wages shall apply the regional minimum wage according to the locality with the highest regional minimum wage; enterprises with units and branches operating in localities with different regional minimum wages shall apply the regional minimum wage according to the locality in which the unit or branch operates.

Industrial parks and export processing zones located in areas with different regional minimum wages, enterprises operating in those industrial parks and export processing zones shall apply the regional minimum wage according to the area with the highest regional minimum wage; in cases where industrial parks and export processing zones have sub-zones located in areas with different regional minimum wages, enterprises operating in the sub-zone located in the area shall apply the regional minimum wage according to that area.

The Circular also clearly states: The lowest salary paid to trained workers (including workers trained by enterprises themselves) must be at least 7% higher than the regional minimum wage prescribed by the Government.

The regional minimum wage prescribed by the Government is used as a basis to determine and adjust salary levels in the salary scale and payroll of enterprises and the salary levels recorded in the labor contracts of employees according to the provisions of labor law./.

According to VOV