On November 15, 2019, the Government issued Decree 90/2019 / ND-CP stipulating the regional minimum wage for employees, effective from January 1, 2020, replacing 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, Enterprises operating in any area shall apply the region-based minimum wage to that area. In case an enterprise has a unit or branch operating in a region with different regional minimum wage, which locality does the unit or branch operate in, applying the region-based minimum wage? there.
When implementing the regional minimum wage specified in this Decree, enterprises must not eliminate or cut 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 prescribed by labor law. Other allowances, additions, allowances and bonuses prescribed by enterprises comply with the labor contract, the collective labor agreement or the enterprise’s regulations.
The minimum regional wage level specified in this Decree is the lowest level which is the basis for the agreement between the enterprise and the employee, including 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:
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.