Minimum salary to increase from October
07:52 | 23/08/2011

VGP – Minimum wage for employees in local enterprises and foreign-invested companies in Việt Nam will increase between VND 1.4 million (US$ 66) and VND 2 million (US$ 95) a month from October 1, 2011, according to Government’s Decree 70/2011/NĐ-CP.

Illustration photo

The Government has just issued Decree 70/2011/NĐ-CP stipulating minimum salaries for Vietnamese employees, who are working for foreign and domestic enterprises.

Under the newly-approved Decree, the minimum wage will be applied for four different regions in Việt Nam.

Region


 

Minimum salary per month  between October 1, 2011 and December 31, 2012

Minimum salary per month in foreign-invested companies (according to Decree 107/2010/NĐ-CP)

Minimum salary per month in local enterprises (according to Decree 108/2010/NĐ-CP)

I

VND 2,000,000 (US $95)

VND 1,550,000 

VND 1,350,000 

II

VND 1,780,000 (US $81)

VND  1,350,000 

VND  1,200,000 

III

VND 1,550,000 (US $74)

VND  1,170,000 

VND  1,050,000 

IV

VND 1,400,000 (US $66)

VND  1,100,000 

VND  830,000 

The new salary benchmarks are VND 300,000 (US $14.25) and VND 650,000 (US $31) higher than the current levels.

The Decree sets the flooring rates for employers to calculate salaries, allowances and welfare benefits for their employees in line with the law.

The Decree also encourages enterprises to pay their employees higher than the region-based minimum wages. Especially, skilled employees should be paid seven times more than the minimum wage./. 

By Kim Anh

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