In 2017, the regional minimum wage increased by a maximum of 250,000 VND per month.

From January 1st, 2017, businesses will apply the new regional minimum wage for employees, ranging from 2.58 to 3.75 million VND per month. Compared to 2016, Region 1 saw the highest wage increase, rising by 250,000 VND per month.

This is the content of Decree No. 153/2016/ND-CP, which stipulates the regional minimum wage for employees working under labor contracts, recently issued by the Government.

According to Decree 153, the regional minimum wage applicable to workers in 2017 will be approximately 180,000-250,000 VND/month higher than the current wage. On average, the regional minimum wage in 2017 increased by 213,000 VND, a 7.3% increase compared to 2016.

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Region 1 saw an increase of 250,000 VND, from 3.5 million to 3.75 million VND/month; Region 2 increased by 220,000 VND, from 3.1 million to 3.32 million VND/month; Region 3 increased by 200,000 VND, from 2.7 million to 2.9 million VND/month; and Region 4 increased by 180,000 VND, from 2.4 million to 2.58 million VND/month.

The decree also clarifies that businesses operating in a particular area must apply the minimum wage rate prescribed for that area. If a business has units or branches operating in areas with different minimum wage rates, each unit or branch must apply the minimum wage rate prescribed for the area in which it operates.

Businesses operating in industrial parks, export processing zones, economic zones, and high-tech zones located in areas with different regional minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage. For businesses operating in areas where the name has changed or the area has been split, the minimum wage level applicable to the area before the name change or split shall be temporarily applied until the Government issues new regulations.

Specifically, in this decree, the Prime Minister requires businesses not to eliminate or reduce wage entitlements for employees working overtime, working at night, working in arduous or hazardous conditions, or in-kind compensation for positions involving arduous or hazardous work, and other entitlements as stipulated by labor laws.

The decree stipulates that other allowances, supplementary payments, subsidies, and bonuses prescribed by the enterprise shall be implemented according to the agreement in the labor contract, collective labor agreement, or the enterprise's regulations.

According to Vietnamplus