Minimum wage to increase 7.3% from early 2017
Minimum wage for contracted employees will increase between VND180,000-250,000 (US$8.18-11.3) per month from January 1, 2017, according to a decree issued by the Government.
Under Decree 153/2016/ND-CP, minimum wage for contracted employees in Region I, including big districts and towns in Hanoi, Hai Phong, Ho Chi Minh City, Dong Nai, Binh Duong and Ba Ria-Vung Tau, will be 3.75 million VND per month, VND250,000 higher than the old wage.
Region II’s wage rose VND220,000 to VND3.32 million, Region III rose by VND200,000 to hit VND2.9 million and a VND180,000 rise in Region IV brought the minimum to VND2.58 million.
Employees working for branches or representative offices of companies will be paid the wage applied for the region that the offices are located in. Enterprises in industrial parks, export processing and economic zones spanning localities with different wage regulations will apply the highest minimal wage.
The decree also stipulates that enterprises must not cut down or abolish payments for employees for overtime or in extreme working conditions as well as other supports and allowances.
