[Vietnam Legal Updates] Official region-based minimum salary applied from January 1st, 2020

November 20, 2019

The government has issued Decree No. 90/2019/ND-CP on the new region-based minimum wages for those who work under labor contracts. According to Decree No. 90/2019/ND-CP, the new region-based minimum wages will be increased from 150,000 to 240,000 dong each month, in comparison with 2019 as follows:

The subjects of application of the region-based minimum wages include the enterprises that are established; organized and managed; and operated under the Law on Enterprises (including Vietnam-based foreign-invested enterprises); the cooperatives, cooperative unions, cooperative groups, farms, households, individuals and the other Vietnam organizations employing employees by the labor contract. Besides, this Decree is also applied with foreign agencies, foreign organizations, international organizations and foreigners in Vietnam employing employees by the labor contract.

The new region-based minimum wages shall be used as the basis for calculating wage scales, wage tables and it is also the payable lowest wage to employees who have not yet been trained.

For employees in vocational training, they must be paid at least seven (7) percent higher than the region-based minimum wages regulated by Government. The employees who have undergone vocational training are specified in Article 5, Decree No. 90/2019/ND-CP.

Decree No. 90/2019/ND-CP replaces Decree No. 157/2018/ND-CP on the region-based minimum wages in 2019. This Decree will take effect from 01st January 2020.

Tags:  Legal Updates