Decree issued on new minimum, which differs according to region.
The government has issued a Decree on the minimum wage to be applied from January 1, 2016. The new minimum in Zone I is VND3.5 million ($154), up from VND3.1 million ($136.4) in 2015. Regions II, III, and IV have increased to VND3.1 million ($136), VND2.7 million ($118.8), and VND2.4 million ($105.6), respectively.
The wage applies to employees of Vietnamese businesses, individuals, and organizations, foreign organizations and enterprises, international organizations, and foreign individuals in Vietnam employing workers under contract.
The minimum wage is the basis for businesses and employees entering into wage agreements. Enterprises and organizations are not allowed remove or cut the wage regime when employees work overtime, work at nights, or do heavy work. Allowances and bonuses must be paid as agreed in labor contracts.
The increase in the minimum wage is part of a plan that the National Wage Council submitted to the government. On September 3 the National Wage Council determined that the minimum wage would increase by 12.4 per cent in 2016, after holding discussions on different options.