The new minimum wage will be higher than the current rate, ranging from 250,000 to 400,000 VND per month, depending on the region.

The government has just issued a Decree stipulating the regional minimum wage for 2016. Accordingly, the new wage for Region I is 3.5 million VND instead of 3.1 million VND in 2015. Regions II, III, and IV see corresponding increases of 3.1 million, 2.7 million, and 2.4 million VND respectively. Thus, the new regional minimum wage is 250,000-400,000 VND higher per month than the current wage.

The above wage rates apply to Vietnamese businesses, cooperatives, farms, households, individuals, and organizations; foreign agencies and organizations, international organizations, and foreign individuals in Vietnam who employ workers under contract.

According to regulations, this is the lowest wage level used as a basis for businesses and employees to negotiate salaries. When implementing the regional minimum wage, businesses are not allowed to eliminate or reduce salary benefits for employees working overtime, at night, or in strenuous or hazardous jobs. Allowances and bonuses are determined by the business and implemented according to the agreement in the contract.

This increase is also the proposal that the National Wage Council has submitted to the Government. Previously, on September 3rd, the Council met and voted in the final negotiation session between employers and employee representatives. Thus, the average regional minimum wage increased by 12.4% compared to 2015. With this figure, wages will meet 80% of the minimum living needs of workers.

Regional minimum wage table applicable to businesses from January 1, 2016.Unit: million VND/month

According to VNE