[Vietnam Legal Updates] Draft on increasing the common wage and region-based minimum wage in 2020

October 23, 2019

On October 21, 2019, according to the Government's proposal, in 2020 the common wage will increase to VND 1,600,000 VND/month (an additional VND 110,000 / month). This proposal has received the consensus of most opinions in the Finance - Budget Committee of the National Assembly. Currently, the common wage is 1,490,000 VND/month (from July 1, 2019).

According to the draft Decree of the Government on regulations of the region-based minimum wage for employees working under labor contracts.

Region-based minimum wages:

a) For enterprises located in region I: VND 4,420,000 VND/month.

b) For enterprises located in region II: VND 3,920,000 VND/month.

c) For enterprises located in region III: VND 3,430,000 VND/month.

d) For enterprises located in region IV: VND 3,070,000 VND/month.

The above region-based minimum wage increased from 150,000 VND to 240,000 VND compared to the current level in 2019 in Decree 157/2018 / ND-CP, corresponding to an increase of 5.1% - 5.7% depending on in each region, the average increase of 5.5%.

Tags:  Legal Updates