On 14 November 2016, Government issued Decree No. 153/2016/NĐ-CP which regulated on regional minimum wage rates workers under employment contracts. Accordingly, the rates are specified as follows:
– The rate of 3,750,000 VND/ month for enterprises in Region I (increased by 250,000 VND/month)
– The rate of 3,320,000 VND/ month for enterprises in Region II (increased by 220,000 VND/month)
– The rate of 2,900,000 VND/ month for enterprises in Region III (increased by 200,000 VND/month)
– The rate of 2,580,000 VND/ month,for enterprises in Region IV (increased by 180,000 VND/month)
These rates above are the lowest ones as a basis that both enterprises and employees agree, ensuring that:
– No less than the regional minimum wage rates paid to employers with simple works.
– Higher than at least 7% of the regional minimum wage rates paid to employers with trained skills and knowledges.
In addition, the Decree has some changes on regions applied to the rates of regional minimum wage as follows:
– Tan Thanh District ( Ba Ria – Vung Tau Province) will switch from Region I to Region II;
– Song Cong City and Pho Yen Town ( Thai Nguyen Province), Tra Vinh City ( Tra Vinh Province);
– Hoi An City ( Quang Nam Province) will switch from Region III to Region II;
– Que Son District, Thang Binh (Quang Nam Province) and Duyen Hai Town ( Tra Vinh Province) will switch from Region IV to Region III;
– Giang Thanh District (Kien Giang Province) will switch from Region III to Region IV.
The Decree comes into effect on 01 January 2017 and replaces Decree No. 122/2015/NĐ-CP also on the rates of regional minimum wage
