From january 01,2015, increase regional minimum wage levelt

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In accordance with the Decree No. 103/2014/ND-CP dated November 11, 2014 of the Government providing stipulating regional minimum wage level for laborers working for enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies, organizations employing laborers according to labor contracts, from January 01, 2015, the regional minimum wage shall be different from VND 2,150,000/month to VND 3,100,000/month, increased by VND 250.000 – 400.000/month depending on different localities.

The regional minimum wage levels applied to enterprises operating in localities of region I such as urban districts and Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, Chuong My districts and Son Tay town of Hanoi City; urban districts and Thuy Nguyen, An Duong, An Lao, Vinh Bao districts of Hai Phong City; urban districts and Cu Chi, Hoc Mon, Binh Chanh, Nha Be districts of Ho Chi Minh City..with the level of VND 3,100,000/month which increased by VND 400.000/month (compared with the previous level of VND 2,700,000/month. For enterprises operating in localities of region II, II and IV, the regional minimum wage levels shall be increased by VND 250.000 – 350.000/month to VND 2,750,000/month; VND 2,400,000/month and VND 2,150,000/month from January.

The regional minimum wage level is basis for enterprises and laborers making agreement on wage, of which the monthly wage levels paid to laborers working under normal working conditions, being ensured sufficient normal working duration in months and finished under the labor norms or the agreed work must ensure that not being lower that the minimum wage levels paid to untrained laborers working simplest jobs and being at least 7% higher than the regional minimum wage levels paid to laborers who have received vocational training.

When implementing the minimum wage level as stipulated under this Decree, the enterprise are not permitted deleting or cutting benefits when the laborers work overtime, work at night, or work under the hazardous conditions. For hazardous jobs, it must have other benefits as stipulated by the law.Allowances, bonuses stipulated by enterprises shall be done as stated in the labor contract and according to regulations of the enterprise.

This Decree takes effect on January 01, 2015 and replaces the Decree No. 182/2013/ND-CP dated November 14, 2013.