Categories: Enterprise and commercialLabourLibraryUpdate

The region-based minimum wages will be increased from January 1st 2013

On December 4^th 2012, the Government has issued Decree No. 103/2012/NĐ-CP regulating on the new region-based minimum wages that will be applicable for labors who are working for enterprises, co-operatives and foreign organizations. Accordingly, the new region-based minimum wages will be increased in 2013 as following:

Region	The current region-based minimum wages (According to Decree No. 70/2011/NĐ-CP dated August 22^nd 2011)	The new region-based minimum wages (According to Decree No. 103/2012/NĐ-CP dated December 04^th 2012)	Increasing region-based minimum wages
Region	(VND/month)	(VND/month)	(VND/month)
I	2,000,000	2,350,000	350,000
II	1,780,000	2,100,000	320,000
III	1,550,000	1,800,000	250,000
IV	1,400,000	1,650,000	250,000

The new region-based minimum wages shall be used as the basis for calculating wage scales, payroll and it is also the lowest wage rate payable to employees who have not yet been trained, more specifically:

+ For companies which have built and used wage scales, payroll: based on new region-based minimum wages to adjust the wage rate in wage scale, payroll, allowances, wages in the labor contract to be suitable with the provisions and regulation of the labor law.

+ For companies which have not built wage scales, payroll: based on new region-based minimum wages to calculate the wage rate in wage scale, payroll, allowances, wages in the labor contract and perform other regime in accordance with the labor law.

For employees who have passed vocational training courses must be at least 7% higher than the region-based minimum wages regulated by Government.

Decree No. 103/2012/NĐ-CP will replace Decree No. 70/2011/NĐ-CP dated August 22^nd 2011 regulating the the region-based minimum wages in 2012. This decree will be effective from January 20^th 2013 and applicable from January 1^st 2013.