Government Decree 157/2018/NĐ-CP on regional minimum salaries

Decree 157/2018/ND-CP on new minimum salaries was issued by the Vietnamese Government on the 16th of November 2018 is effective since the 1st January 2019, and it was issued in order to replace the previous Decree 141/2017/ND-CP.

This Decree maybe important for all the foreign entrepreneurs and investors willing to employ Vietnamese workers as it also partially redefines the Vietnamese regional classification in terms of minimum salaries defined in Decree 141/2017/ND-CP.

Since the 1st of January 2019, minimum salaries were increased as follows: 

Region I: VND 4,180,000 (increased from VND 3,980,000) 

Region II: VND 3,710,000 (increased from VND 3,530,000)

Region III: VND 3,250,000 (increased from VND 3,090,000) 

Region IV: VND 2,920,000 (increased from VND 2,760,000)

It is also important to notice that Decree 157/2018/ND-CP retains existing regulations on application of minimum salaries from the previous degree, such as:

• Salary paid to employees who have completed vocational training must be at least 7% higher than the minimum salary level.
• In case an enterprise straddles adjacent areas with different applicable minimum salaries, the highest minimum salary rate must be paid.
• Enterprises are prohibited from abolishing or reducing overtime, night shift, hardship and toxic salaries/allowances, etc. provided to employees when applying the new minimum salaries in accordance with the new decree.

If you wish to have more precise information concerning the regional classification, you can read the full version of Decree 157/2018/NĐ-CP on the website thuvienphapluat.vn.

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