Region-based minimum wages effect from January 01, 2016.

1. Region-based minimum wages shall be applied as follows:

a) VND 3,500,000/month shall be applied to enterprises operating in region I.

b) VND 3,100,000/month shall be applied to enterprises operating in region II.

c) VND 2,700,000/month shall be applied to enterprises operating in region III.

d) VND 2,400,000/month shall be applied to enterprises operating in region IV.

2. Administrative divisions of regions I, II, III and IV are prescribed in the Appendix enclosed with this Decree.

Applied regulations on region-based minimum wages

1. Region-based minimum wages shall be applied to every enterprise according to the administrative division in which the enterprise is operating. If the enterprise has affiliates, branches operating in different administrative divisions with different region-based minimum wages, region-based minimum wage shall be applied according to the administrative division in which the affiliate or branch is operating.

2. The highest region-based minimum wage shall be applied to every enterprise operating in industrial zones, export-processing zones in administrative divisions with different region-based minimum wages.

3. If an enterprise operates in the administrative division that is renamed or divided, region-based minimum wages will be temporarily applied as before the change or division until there is new provision by the Government.

4. The highest region-based minimum wage shall be applied to enterprise operating in one or more new-established administrative divisions with different region-based minimum wages. If an enterprise operates in a city affiliated to province which is established from one or more administrative divisions of region IV, the region-based minimum wage for the remaining provincial cities prescribed in Section 3 of the Appendix enclosed with this Decree shall be applied.

Application of region-based minimum wages

1. Region-based minimum wages specified in Article 3 of this Decree shall be used as a basis for wage agreement between the employer and the employee in which the wage paid to employees working in normal conditions, satisfying normal working hours per month and completing agreed works must:

a) not be lower than region-based minimum wages for untrained workers doing the simplest tasks;

b) be higher than at least 7% of region-based minimum wages for trained workers prescribed in Clause 2 of this Article.

2. A trained worker is:

a) A person who has been granted a vocational training certificate, vocational training degree, junior college degree, vocational high school degree, college degree, certificate of foundation degree, bachelor degree, master’s degree or doctorate degree according to regulations in Decree No. 90/CP dated November 24, 1993 by the Government on regulating the structure of the national education system, the administration system of degree and diploma in education and training;

b) A person who has been granted a junior college graduation degree, graduation degree of vocational training, college graduation degree, university graduation degree, master’s degree, doctorate degree; vocational education certificate; higher education diploma or a continuing education diploma/certificate according to regulations in the Law on Education 1998 and the Law on Education 2005;

c) A person who has been granted the certificate under the regular vocational programs, primary vocational training certificate, vocational associate degree, vocational college degree or has completed vocational programs under vocational contracts prescribed in the Law on Vocational Training;

d) A person who has been granted a certificate of national occupational skills according to regulations in the Law on Employment;

dd) A person who has been granted a diploma/certificate of vocational education at primary/secondary/college level; continuing training and other vocational training program according to regulations in the Law on Vocational education;

e) A person who has been granted a graduation degree at higher education level according to regulations in the Law on Higher education;

g) A person who has been granted a diploma/certificate from a foreign training institution;

h) A person who has been given vocational training by the company or undergone vocational training himself/herself, tested by the company, and assigned to do the tasks requiring vocational training.

3. Pursuant to region-based minimum wages prescribed in Article 3 of this Decree and agreements in labor contract with the employee, collective bargaining agreement or regulations of the enterprise, the enterprise shall cooperate with trade union executive board and the employee to deal and adjust wages in the wage scale, wage recorded in labor contract and wage paid to the employee to satisfy the provisions of labor law and the logical wage correlation between untrained employee, trained employee, the employee with high technical and professional qualification, between the newly recruited employee and experienced one.

Source: Decree 122