Govt approves regional minimum wage hike for 2020

The Government has issued a decree raising the minimum monthly wage for contract employees by VND150,000-240,000 depending on region, with effect from January 1 next year.

According to Decree 90/2019/ND-CP, the monthly minimum wage for employees in region one will be hiked from VND4.18 million to VND4.42 million, the local media reported.

Those working for businesses in region two will see a monthly minimum wage rise from VND3.71 million to VND3.92 million.

In addition, the minimum wage for laborers in region three will increase from VND3.25 million to VND3.43 million per month, and in region four, from VND2.92 million to VND3.07 million per month.

If laborers work in normal working conditions, have adequate working hours per month and complete their workload, their wages must not be lower than the regional minimum wages.

As for vocationally trained workers, employers must pay them at least 7% more than the minimum wage by region.

When raising minimum wages for their staff, employers are prohibited from removing or cutting allowances for workers who work overtime, at night or in a toxic environment. Other allowances, subsidies and bonuses must be maintained as stated in labor contracts, collective labor agreements and enterprises’ regulations.


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