Minimum wage to increase on January 1
The Government issued Decree No 107/2010/ND-CP on October 29 setting the minimum wage for Vietnamese workers working in foreign-invested enterprises, foreign organizations, international organizations and foreigners in Viet Nam.
The minimum wage is staggered according to zones, with the minimum wage of VND1.55 million per month applicable to employees located in the inner districts of Hanoi and HCM City (Zone I).
A minimum wage of VND1.35 million per month is applicable to suburban districts of Ha Noi and HCM City, inner districts of the cities of Hai Phong, Ha Long, and Bien Hoa and certain districts in the provinces of Bình Duong, Dong Nai, Ba Ria-Vung Tau (Zone II).
A VND1.17 million per month minimum wage must be paid by employers located in suburban Ha Noi and HCM City as well as all towns within provinces (Zone III). The basic minimum wage of VND1.1 million is applicable to all other areas (Zone IV).
Wage scale and other allowances set forth by enterprises should base on the minimum wage. The wage paid to a vocational trainee must exceed the minimum wage for the zone by at least 7 per cent, and lawmakers encourage enterprises to pay wages higher than the minimum wage wherever possible.
The basic minimum wage takes effect on January 1, 2011, while the adjusted zone-based wages will apply from next July 1.
by Lawyers of Bizconsult Law Firm