REGION-BASED MINIMUM WAGES OFFICIALLY INCREASED FROM 01 JANUARY 2020 ONWARDS

According to Decree No. 90/2019/ND-CP issued by the Government on 15 November 2019 and coming into effect on 01 January, 2020:

– Accordingly, provisions on region-based minimum wages applied to workers employed by enterprises are as follows:

• Region I: Increased from 4.18 million VND/month to 4.42 million VND/month (an increase of 240,000 VND/month);
• Region II: Increased from 3.71 million VND/month to 3.92 million VND/month (an increase of 210,000 VND/month);
• Region III: Increased from 3.25 million VND/month to 3.43 million VND/month (an increase of 180,000 VND/month);
• Region IV: Increased from 2.92 million VND/month to 3.07 million VND/month (an increase of 150,000 VND/month);

– In implementing region-based minimum wages, enterprises must not omit or reduce salary regimens when workers work overtime, during night time, in heavy, toxic labor conditions.

– Accordingly, per Official Letter No. 2781/BHXH-QLT issued by the Social Security Office of HCMC and coming into effect on 29 November 2019 then from 01 January 2020. The new region-based minimum wages applied to the region of Ho Chi Minh City are as follows:

• A rate of 4,420,000 VND/month, applied to units, enterprises operating in the suburban and urban districts of Cu Chi, Hoc Mon, Binh Chanh, Nha Be.
• A rate of 3,920,000 VND/month, applied to enterprises operating within the Can Gio suburban district.
• For enterprises operating within Ho Chi Minh City with different minimum wages for its operating branches, wherever the operating branch or unit is situated then the minimum wage of that region shall be applied.

– No later than February 28, 2020, employers must submit dossiers adjusting salary rates with applicable social, health, unemployment, occupational accident and disease insurances in accordance with new region-based minimum wages.

Best regards,