The Government promulgates a Decree providing for region-based minimum wages applied to employees working under labour contracts.
Accordingly, region-based minimum wages:
a) For enterprises located in region I: VND 3,980,000/month.
b) For enterprises located in region II: VND 3,530,000/month.
c) For enterprises located in region III: VND 3,090,000/month.
d) For enterprises located in region IV: VND 2,760,000/month.
The subregions referred to in this document are district-level administrative divisions. List of region I, region II, region III and region IV is provided in the Appendix enclosed herewith.
Enterprise located in a specific subregion shall apply the respective minimum wage applied thereto. In the event that affiliates and/or branches of the same enterprise located in different subregions to which different region-based minimum wages apply, they must apply the respective minimum wages applied thereto.
If an enterprise is located in the industrial park or the export processing zone located in the territory containing two or more subregions to which different region-based minimum wages apply, it shall apply the highest wage.
If an enterprise is located in the subregion which is renamed or divided, it shall still apply the region-based minimum wage applied to that subregion before it is renamed or divided until a new regulation announced by the Government comes into force.
If an enterprise is located in the subregion which is converted from a district to which a different region-based minimum wage applies or established by merger of two or more subregions to which different region-based minimum wages apply, it shall apply the highest minimum wage. In case an enterprise is located in a provincial city which is established from one or more subregions in the region IV, it shall apply the region-based minimum wage applied to the provincial cities in the region III as mentioned in the Appendix enclosed herewith.
Region-based minimum wages, referred to in Article 3 hereof, are the lowest rates used as the basis for any arrangement between enterprises and employees on salary and salary payment. The wage paid to an employee who works under normal working conditions, meets the required amount of monthly working hours and has fulfilled the predetermined labour productivity norm or agreed-upon duties shall:
a) not be lower than the region-based minimum wage paid to an unskilled worker who performs simplest duties; and
b) be at least 7% higher than the region-based minimum wage paid to skilled workers prescribed in Clause 2 of this Article.
This Decree shall come into force as from January 25, 2018.