Vietnam raises minimum salary requirements for labourers

Minimum salary for labourers at both domestic and foreign-owned enterprises in Vietnam will be raised beginning January 1, 2011.

According to the newly issued government decree No.108/2010/ND-CP, the raised minimum will be between VND100,000 (USD5) and VND370,000 (USD18.5) for labourers working at companies, cooperatives, farms, household businesses, individual businesses and other organisations in the country which hire Vietnamese workers.

The minimum salary increase will vary depending on different zone classifications set forth by the government. Workers in businesses located in Zone 1 will get the minimum salary of VND1.35 million (USD67.5)/month against the current VND980,000 (USD49)/month.

Companies in Zone 2 will recieve a salary of VND1.2 million (USD60)/month up from the current VND880,000 (USD44)/month. The minimum salary for Zone 3 will be VND1.05 million (USD52.5)/month up from VND810,000 (USD40.5) presently and VND830,000 (USD41.5) for Zone 4 up from VND730,000 (USD36.5).

Decree No.107/2010/ND-CP regulates minimum salary for Vietnamese people working for foreign-owned firms, organisations and foreign individuals in the country.

Accordingly, monthly minimum wages for companies located in Zone 1 will rise to VND1.55 million (USD77.5) up from VND1.34 million (USD67) at present; VND1.35 million (USD67.5) for Zone 2 up from VND1.19 million (USD59.5) currently; VND1.17 million (USD58.5) for Zone 3 compared to the current VND1.04 million (USD52) and VND1.1 million (USD55) for Zone 4 which is now paying VND1 million (USD50).

The minimum salary mentioned in the two decrees will also be applicable to subsidise outside salary, wage levels based on labour contracts as well as other regimes of each enterprise.

The trained workers must be paid at least 7% higher than the minimum wage stipulated for the zone. Companies are encouraged to pay wages higher than the zone base levels.

Most localities will follow the decrees beginning January 1, 2011; while a number of cities and provinces will implement beginning July 1.

Localities which will put the salary regulations into practice from July 1 comprise:

Zone 1: the districts of Cu Chi, Hoc Mon, Binh Chanh and Nha Be in Ho Chi Minh City; Bien Hoa City and the districts of Nhon Trach, Long Thanh, Vinh Cuu and Trang Bom in Dong Nai Province; Thu Dau Mot Town and the districts of Thuan An, Di An, Ben Cat and Tan Uyen in Binh Duong Province and Vung Tau City in Ba Ria-Vung Tau Province.

Zone 2: the districts of Dinh Quan and Xuan Loc in Dong Nai Province; the districts of Phu Giao and Dau Tieng in Binh Duong Province; Tan An City and the districts of Duc Hoa, Ben Luc, Can Duoc and Can Giuoc in Long An Province.

Zone 3: the districts of Thu Thua, Duc Hue, Chau Thanh and Tan Tru in Long An Province.- Dtinews

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