In Vietnam, the minimum salary has been used by employer to determine the minimum level to be paid to unskilled workers working in a normal conditions in different parts of the country. The minimum level has recently been criticized not reflecting the increase of Vietnam’s inflation over the years as such not sufficient for the workers to maintain a normal daily expenses. The adjustment has been expected long since the last minimum salary increase and only been legalized after the assembly meeting recently.
Decree 182/2013/NĐ-CP has been issued and taking effect on Dec 31st, 2013 which regulates the minimum area salary for employees working at enterprises, cooperatives, cooperation groups, farms, households, individuals and other organizations employing workers. This decree will replace Decree 103/2012/ND-CP.
Accordingly, the minimum area salary in 2014 increases about 14% compared with 2013, and valid as of Jan 1st, 2014. This new law will result in higher variable cost of enterprises operating in labour intensive industries i.e. manufacturing, agriculture. For more information or legal advice, please contact ANT Lawyers, your employment lawyers in Vietnam.