Today (January 1): Minimum wage 2019 officially increased from 160,000 - 200,000 VND
Decree 157/2018/ND-CP regulating the adjustment of regional minimum wages in 2019 takes effect from today (January 1, 2019). The minimum wage in 4 wage regions will be increased by 160,000 - 200,000 VND compared to the 2018 level.
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Accordingly, the minimum wage applied in 4 regions for employees working under labor contracts from January 1, 2019, is as follows:
Level 4,180,000 VND/month, applied to businesses operating in the areaRegion I(Increase by 200,000 VND compared to 2018 level).
Level 3,710,000 VND/month, applied to businesses operating in the areaRegion II.(Increase by 180,000 VND compared to 2018 level).
Level 3,250,000 VND/month, applied to businesses operating in the areaRegion III.(Increase by 160,000 VND compared to 2018 level).
Level 2,920,000 VND/month, applied to businesses operating in the areaRegion IV.(Increase by 160,000 VND compared to 2018 level).
Thus, the new regional minimum wage is about 160,000-200,000 VND/month higher than the current wage.
Decree 157/2018/ND-CP also clearly states that the area applying the regional minimum wage is regulated according to the administrative units at the district, town and provincial level. Enterprises operating in any area shall apply the regional minimum wage regulated for that area.
In case an enterprise has units or branches operating in areas with different regional minimum wages, the unit or branch operating in which area shall apply the regional minimum wage prescribed for that area.
Enterprises operating in industrial parks and export processing zones located in areas with different regional minimum wages shall apply the area with the highest regional minimum wage.
Subjects subject to minimum wage increase from January 1, 2019
Decree 157/2018/ND-CP stipulates that the subjects of regulation include: Employees working under labor contracts as prescribed by the Labor Code; enterprises established, organized and managed and operating under the Law on Enterprises; cooperatives, cooperative unions, cooperative groups, farms, households, individuals and other organizations in Vietnam that hire employees under labor contracts; foreign agencies, organizations, international organizations and foreign individuals in Vietnam that hire employees under labor contracts (except in cases where international treaties to which the Socialist Republic of Vietnam is a member have provisions different from those of this Decree).
