Regional minimum wages in 2020

Regional minimum wages in 2020

On November 15, 2019, the Government issued Decree 90/2019/ND-CP, prescribing regional minimum wage levels applicable to employees working under labor contracts. Accordingly, from January 01, 2020, regional minimum wages increase by VND 150,000 – 240,000/person/month.

According to the Decree, regional minimum wage levels applicable to employees working in enterprises are as follows:

  • Region I: VND 4,420,000/month (currently, VND 4,180,000/month).
  • Region II: VND 3,920,000/month (currently, VND 3,710,000/month).
  • Region III: VND 3,430,000/month (currently, VND 3,250,000/month).
  • Region IV: VND 3,070,000/month (currently, VND 2,920,000/month).

The regional minimum wage is the lowest level as a basis for enterprises and employees to reach agreement on wage. For employees doing the jobs requiring vocational training and vocational skills, their salaries must be at least 7% higher than the regional minimum wage.

In addition, Decree 90/2019/ND-CP also includes a change in geographical areas to which regional minimum wages are applied, specifically:

  • Moving from region III to region II: Dong Phu district (Binh Phuoc province); Ben Tre city, Chau Thanh district (Ben Tre province).
  • Moving from region IV to region II: Dong Son district, Quang Xuong district (Thanh Hoa province), Nghi Loc district, Hung Nguyen district, Cua Lo town (Nghe An province), Ba Tri district, Binh Dai district and Mo Cay district (Ben Tre province).

This Decree 90/2019/ND-CP takes effect from January 01, 2020 and supersedes  Decree 157/2017/ND-CP

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