On November 15, 2019, the Government issued Decree 90/2019 / ND-CP stipulating the regional minimum wage for employees. This Decree takes effect from January 1, 2020, and replaces Decree 157/2018 / ND-CP.
Decree 90/2019 / ND-CP stipulates the regional minimum wage applicable to employees working in enterprises as follows:
a) VND 4,420,000 / month, applicable to enterprises operating in the area of ​​region I.
b) VND 3,920,000 / month, applicable to enterprises operating in the area of ​​Region II.
c) VND 3,430,000 / month, applicable to enterprises operating in the area of ​​Region III.
d) VND 3,070,000 / month, applicable to enterprises operating in the area of ​​Region IV.
Accordingly, enterprise operating in any area shall apply the region-based minimum wage to that area. In case an enterprise having a unit or branch operating in a region with different regional minimum wage, the unit or branch operate in specific location will be appled the region-based minimum wage for that location.
When implementing the regional minimum wage prescribed in this Decree, enterprises must not eliminate or cut the wage regimes when laborers work overtime, work at night, work in working conditions. hard, toxic, in-kind allowances for heavy and hazardous job titles and other regimes according to the labor law. Other allowances, additions, allowances and bonuses prescribed by enterprises shall comply with the agreements in labor contracts, collective labor agreements or in the enterprise’s regulations.
The region-based minimum wage level specified in this Decree is the lowest level to serve as a basis for enterprises and workers to agree and pay wages, in which the salary paid to employees working in normal working conditions, ensuring adequate normal working hours in the month and fulfilling the agreed labor or work norms must ensure:
(1) Not lower than the regional minimum wage for workers engaged in simple work; (2) At least 7% higher than the regional minimum wage for employees performing vocational training.
Thus, from January 1, 2020, businesses conduct review and adjustment and rebuild the new wage scale to comply with the law. This change in salary is necessary with the change of socio-economy in the past 1 year, creating conditions for employees to have a better life. Many businesses are currently applying wages higher than the regional minimum wage, so changing them does not affect too much.