REGIONAL MINIMUM WAGE TO SURGE 6,5% IN 2018

Minimum wage in Vietnam is determined regionally and on a per month basis, with the four regions ranked according to their socio-economic development.

Region I covers the urban parts of Hanoi and HCM City. Region II applys to rural areas of Hanoi and HCM City, along with the urban regions of Can Tho City, Da Nang City and Hai Phong City. Region III comprises provincial cities and the districts of Bac Ninh Province, Bac Giang Province, Hai Duong Province and Vinh Phuc Province, while region IV consists of the remaining localities.

The Government has just issued Decree No. 141/2017 / ND-CP replacing the Decree No. 153/2016/ ND-CP stipulating the regional minimum wage level for laborers working under labor contracts.

Accordingly, from January 1, 2018, the regional minimum wage will be applied as follows:

- Region I: 3,980,000 VND / month ( increase by 230,000 VND compared to current regulations in Decree 153/2016 / ND-CP)

- Region II: VND 3,530,000 / month (increase by VND 210,000)

- Region III: VND 3,090,000 / month (increase by VND 190,000)

- Region IV: VND 2,760,000 / month (increase by VND 180,000).

Thus, the average 4 regions, the regional minimum wage increase in 2018 approved by the Government has increased by 6.5% compared to 2017. The minimum wage rise was supposed to meet 92-96% of minimum living standards

In addition, Decree No. 141 also regulates zoning for some districts and towns as follows:

- To take Long Khanh town of Dong Nai province from region II to region I;

- To take the Unified districts of Dong Nai province, Thu Thua district of Long An province, Tam Ky city of Quang Nam province from region III to region II.