Deloitte Vietnam - Alert - Update on Region-based Minimum Wage Level

Minimum area wage rates will be increased to VND 2,700,000 (14% increase).

The Government has recently issued Decree No. 182/2013/ND-CP (“Decree 182”) dated 14 November 2013 replacing Decree No. 103/2012/ND-CP dated 4 December 2012 and stipulating region-based minimum wage levels for all types of enterprises. Accordingly:

·      The level of VND 2,700,000/month will be applied to enterprises operating in localities of region I

·      The level of VND 2,400,000/month will be applied to enterprises operating in localities of region II

·      The level of VND 2,100,000/month will be applied to enterprises operating in localities of region III

·      The level of VND 1,900,000/month will be applied to enterprises operating in localities of region IV

In which:

·      Region I: covering urban and suburban districts of Hanoi, Hai Phong, Ho Chi Minh city; Bien Hoa city and some rural districts of Dong Nai; Thu Dau Mot city and some towns, rural districts of Binh Duong province; and Vung Tau city of Ba Ria – Vung Tau province;

·      Region II: covering the remaining rural districts of Hanoi, Hai Phong; Hai Duong city of Hai Duong province; Hung Yen city and some rural districts of Hung Yen province; etc.;

·      Region III: covering remaining provincial cities (except those of region I, II); Chi Linh town and some rural districts of Hai Duong province; rural districts of Vinh Phuc province; etc.;

·      Region IV: covering the remaining localities.

(Note: The detailed list (page#4) of localities to apply region-based minimum wage levels is provided in Appendices attached with this Decree)

Decree 182 shall be effective from 31 December 2013. The region-based minimum wage levels in this Decree are applied from 1 January 2014.

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