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Decree 90/2019/ND-CP stipulating regional minimum wage for employees working under labor contracts.

The Government has just issued Decree 90/2019/ND-CP to replace Decree 157/2018/ND-CP stipulating regional minimum wage for employees working under labor contracts. Accordingly, the minimum regional wage applied from January 1, 2020 increases from 150,000 to 240,000 VND / month depending on each region, specifically as follows: - For employees working in enterprises operating in region I: VND 4,420,000 / month (an increase of VND 240,000 compared to the current provisions of Decree 157); - For employees working in enterprises operating in the area of Region II: VND 3,920,000 / month (an increase of VND 210,000 / month); - For employees working in enterprises operating in the region III: 3,430,000 VND / month (an increase of 180,000 VND / month); - For employees working in enterprises operating in the region IV: 3,070,000 VND / month (an increase of 150,000 VND / month).

THE GOVERNMENT
-------

THE SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No.: 90/2019/ND-CP

Hanoi, November 15, 2019

 

DECREE

STIPULATING REGION-BASED MINIMUM WAGES APPLIED TO EMPLOYEES WORKING UNDER LABOUR CONTRACTS

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Labour Code dated June 18, 2012;

Pursuant to the Law on enterprises dated November 26, 2014;

At the request of the Minister of Labour, War Invalids and Social Affairs;

The Government promulgates a Decree providing for the region-based minimum wages applied to employees working under labour contracts.

Article 1. Scope

This Decree stipulates the region-based minimum wages applied to employees who work under labour contracts in accordance with the Labour Code.

Article 2. Regulated entities

1. Employees who work under terms and provisions of labour contracts as prescribed in the Labour Code.

2. Enterprises duly established, organized and operating under the Law on enterprises.

3. Cooperatives, cooperative unions, artels, farms, households, other organizations and individuals in Vietnam that hire employees on the basis of labour contracts.

4. Foreign authorities, foreign organizations, international organizations and foreigners that live/operate in the territory of Vietnam and hire employees under labour contracts (unless otherwise stipulated in international agreements to which the Socialist Republic of Vietnam is signatory).

The entities mentioned in Clauses 2, 3 and 4 of this Article are hereinafter referred to as “enterprises”.

Article 3. Region-based minimum wages

1. Region-based minimum wages:

a) For enterprises located in region I: VND 4,420,000/month.

b) For enterprises located in region II: VND 3,920,000/month.

c) For enterprises located in region III: VND 3,430,000/month.

d) For enterprises located in region IV: VND 3,070,000/month.

2. The subregions referred to in this document are district-level administrative divisions. The list of region I, region II, region III and region IV is provided in the Appendix enclosed herewith.

Article 4. Principles for application of region-based minimum wages

1. An enterprise located in a specific subregion shall apply the respective minimum wage applied thereto. In the event that affiliates and/or branches of the same enterprise located in different subregions to which different region-based minimum wages apply, they must apply the respective minimum wages applied thereto.

2. If an enterprise is located in the industrial park or the export processing zone located in the territory containing two or more subregions to which different region-based minimum wages apply, the highest wage shall apply.

3. If an enterprise is located in the subregion which is renamed or divided, the region-based minimum wage applied to that subregion before it is renamed or divided shall still apply until new regulations promulgated by the Government come into force.

4. If an enterprise is located in the subregion which is converted from a district to which a different region-based minimum wage applies or which is established by merger of two or more subregions to which different region-based minimum wages apply, it shall apply the highest region-based minimum wage. In case an enterprise is located in a provincial city which is established from one or more subregions in the region IV, it shall apply the region-based minimum wage applied to the remaining provincial cities of the region III as provided in Section 3 of the Appendix enclosed herewith.

Article 5. Application of region-based minimum wages

1. The region-based minimum wages referred to in Article 3 hereof are the lowest rates used as the basis for any arrangement between enterprises and employees on salary and salary payment. The wage paid to an employee who works under normal working conditions, ensures the required monthly working hours and has fulfilled the predetermined labour productivity norm or agreed-upon duties shall:

a) not be lower than the region-based minimum wage paid to an unskilled worker who performs simplest duties; and

b) be at least 7% higher than the region-based minimum wage paid to a skilled worker as prescribed in Clause 2 of this Article.

2. The following employees are considered skilled workers:

a) Employees holding vocational certificates, vocational diplomas, professional secondary school diplomas, vocational secondary school diplomas, associate degrees, undergraduate preparatory certificates, undergraduate education degrees, bachelor's degrees, postgraduate or master's degrees, or doctoral degrees, as defined in the Government’s Decree No. 90/CP dated November 24, 1993 on framework of national education system, educational and training certificate and diploma system;

b) Employees holding certificates of graduation from professional secondary schools, certificates of completion of vocational training courses, associate degrees, bachelor’s degrees, master's degrees, doctoral degrees, vocational education certificates or diplomas, undergraduate education diplomas, or continuing education diplomas or certificates as regulated in the Law on Education in 1998 and the Law on Education in 2005;

c) Employees holding certificates of completion of continuing vocational education programs, primary-level vocational training certificates, diplomas granted by vocational secondary schools or vocational training colleges, or certificates of completion of vocational training programs according to vocational training agreements as regulated in the Law on Vocational Training;

d) Employees holding national vocational skill certificates as regulated in the Law on Employment;

dd) Employees holding primary-, intermediate- or advanced-level vocational education certificates or diplomas, certificates of completion of continuing training programs or other vocational training programs as regulated in the Law on Vocational Education;

e) Employees holding certificates of graduation from higher education programs as regulated in the Law on Higher Education;

g) Employees holding diplomas or certificates awarded by foreign training institutions;

h) Employees who have successfully completed vocational training programs provided by enterprises or self-taught and are arranged by enterprises to job positions holders of which must be skilled workers.

3. When applying the region-based minimum wages prescribed herein, enterprises are not allowed to eliminate or cut back on wages paid to employees who work overtime, night shifts, or work in hazardous and arduous working conditions, perquisites for holders of hazardous and arduous working positions and other benefits as regulated in the Labour Code. Other allowances, supplemental pay, subsidies or bonuses decided by enterprises shall be paid according to terms and conditions of the signed labour contracts, collective labour agreements or statutes of enterprises.

Article 6. Effect and implementation

1This Decree comes into force from January 01, 2020. The Government’s Decree No. 157/2018/ND-CP dated November 16, 2018 shall cease to have effect from the effective date of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces or central-affiliated cities, and relevant authorities and enterprises shall be responsible for implementing this Decree./.

 

 

ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER




Nguyen Xuan Phuc

 

APPENDIX

LIST OF SUBREGIONS APPLYING REGION-BASED MINIMUM WAGES AS OF JANUARY 01, 2020
(Enclosed with the Government’s Decree No. 90/2019/ND-CP dated November 15, 2019)

1. Region I includes the following subregions:

Urban/suburban districts of Hanoi City, including: Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, and Chuong My, and Son Tay Town;

Urban/suburban districts of Hai Phong City, including: Thuy Nguyen, An Duong, An Lao, Vinh Bao, Tien Lang, Cat Hai and Kien Thuy;

Urban/suburban districts of Ho Chi Minh City, including: Cu Chi, Hoc Mon, Binh Chanh and Nha Be;

Bien Hoa City, Long Khanh Town and other suburban districts of Dong Nai Province, including: Nhon Trach, Long Thanh, Vinh Cuu and Trang Bom;

Thu Dau Mot City, and towns and suburban districts of Binh Duong Province, including: Thuan An, Di An, Ben Cat, Tan Uyen, Bau Bang, Bac Tan Uyen, Dau Tieng and Phu Giao;

Vung Tau City and Phu My Town of Ba Ria – Vung Tau Province.

2. Region II includes the following subregions:

Remaining suburban districts of Hanoi City;

Remaining suburban districts of Hai Phong City;

Hai Duong City of Hai Duong Province;

Hung Yen City, My Hao Town and suburban districts of Hung Yen Province, including: Van Lam, Van Giang and Yen My;

Vinh Yen City, Phuc Yen City, and two suburban districts of Vinh Phuc Province, including Binh Xuyen and Yen Lac;

Bac Ninh City, Tu Son Town and suburban districts of Bac Ninh Province, including: Que Vo, Tien Du, Yen Phong, Thuan Thanh, Gia Binh and Luong Tai;

Ha Long City, Cam Pha City, Uong Bi City and Mong Cai City of Quang Ninh Province;

Thai Nguyen City, Song Cong City and Pho Yen Town of Thai Nguyen Province;

Viet Tri City of Phu Tho Province;

Lao Cai City of Lao Cai Province;

Nam Dinh City and My Loc suburban district of Nam Dinh Province;

Ninh Binh City of Ninh Binh Province;

Hue City of Thua Thien Hue Province;

Hoi An City and Tam Ky City of Quang Nam Province;

Urban/suburban districts of Da Nang City;

Nha Trang City and Cam Ranh City of Khanh Hoa Province;

Da Lat City and Bao Loc City of Lam Dong Province;

Phan Thiet City of Binh Thuan Province;

Can Gio District of Ho Chi Minh City;

Tay Ninh City and two suburban districts of Tay Ninh Province, including Trang Bang and Go Dau;

Suburban districts of Dong Nai Province, including Dinh Quan, Xuan Loc and Thong Nhat;

Dong Xoai City and two suburban district of Binh Phuoc Province, including Chon Thanh and Dong Phu;

Ba Ria City of Ba Ria – Vung Tau Province;

Tan An City and suburban districts of Long An Province, including: Duc Hoa, Ben Luc, Thu Thua, Can Duoc and Can Giuoc;

My Tho City and Chau Thanh District of Tien Giang Province;

Ben Tre City and Chau Thanh District of Ben Tre Province;

Urban districts of Can Tho City;

Rach Gia City, Ha Tien City and Phu Quoc District of Kien Giang Province;

Long Xuyen City and Chau Doc City of An Giang Province;

Tra Vinh City of Tra Vinh Province;

Ca Mau City of Ca Mau Province;

Dong Hoi City of Quang Binh Province.

3. Region III includes the following subregions:

Remaining provincial cities (except provincial cities of region I and region II);

Suburban districts of Hai Duong Province, including: Cam Giang, Nam Sach, Kim Thanh, Kinh Mon, Gia Loc, Binh Giang and Tu Ky;

Suburban districts of Vinh Phuc Province, including: Vinh Tuong, Tam Dao, Tam Duong, Lap Thach and Song Lo;

Phu Tho Town and suburban districts of Phu Tho Province, including: Phu Ninh, Lam Thao, Thanh Ba and Tam Nong;

Suburban districts of Bac Giang Province, including: Viet Yen, Yen Dung, Hiep Hoa, Tan Yen and Lang Giang;

Quang Yen Town, Dong Trieu Town and Hoanh Bo District of Quang Ninh Province;

Two suburban districts of Lao Cai Province, including: Bao Thang and Sa Pa;

Remaining suburban districts of Hung Yen Province;

Suburban districts of Thai Nguyen Province, including: Phu Binh, Phu Luong, Dong Hy and Dai Tu;

Luong Son District of Hoa Binh Province;

Remaining suburban districts of Nam Dinh Province;

Two suburban districts of Ha Nam Province, including: Duy Tien and Kim Bang;

Cua Lo Town and suburban districts of Nghe An Province, including Nghi Loc and Hung Yen;

Suburban districts of Ninh Binh Province, including: Gia Vien, Yen Khanh and Hoa Lu;

Bim Son Town and suburban districts of Thanh Hoa Province, including Tinh Gia, Dong Son and Quang Xuong;

Ky Anh Town of Ha Tinh Province;

Huong Thuy Town, Huong Tra Town and suburban districts of Thua Thien Hue Province, including: Phu Loc, Phong Dien, Quang Dien and Phu Vang;

Dien Ban Town and suburban districts of Quang Nam Province, including: Dai Loc, Duy Xuyen, Nui Thanh, Que Son, Thang Binh and Phu Ninh;

Two suburban districts of Quang Ngai Province, including: Binh Son and Son Tinh;

Song Cau Town and Dong Hoa District of Phu Yen Province;

Two suburban districts of Ninh Thuan Province, including: Ninh Hai and Thuan Bac;

Ninh Hoa Town and suburban districts of Khanh Hoa Province, including: Cam Lam, Dien Khanh and Van Ninh;

Dak Ha District of Kon Tum Province;

Two suburban districts of Lam Dong Province, including Duc Trong and Di Linh;

La Gi Town and two suburban districts of Binh Thuan Province, including Ham Thuan Bac and Ham Thuan Nam;

Phuoc Long Town, Binh Long Town and suburban districts of Binh Phuoc Province, including: Hon Quan, Loc Ninh and Phu Rieng;

Remaining suburban districts of Tay Ninh Province;

Remaining suburban districts of Dong Nai Province;

Suburban districts of Ba Ria - Vung Tau Province, including: Long Dien, Dat Do, Xuyen Moc, Chau Duc and Con Dao;

Kien Tuong Town and suburban districts of Long An Province, including: Duc Hue, Chau Thanh, Tan Tru and Thanh Hoa;

Go Cong Town, Cai Lay Town, and two suburban districts of Tien Giang Province, including Cho Gao and Tan Phuoc;

Suburban districts of Ben Tre Province, including: Ba Tri, Binh Dai and Mo Cay Nam;

Binh Minh Town and Long Ho District of Vinh Long Province;

Suburban districts of Can Tho City;

Suburban districts of Kien Giang Province, including: Kien Luong, Kien Hai and Chau Thanh;

Tan Chau Town and suburban districts of An Giang Province, including: Chau Phu, Chau Thanh and Thoai Son;

Nga Bay Town and two suburban districts of Hau Giang Province, including Chau Thanh and Chau Thanh A;

Duyen Hai Town of Tra Vinh Province;

Gia Rai Town of Bac Lieu Province;

Vinh Chau Town and Nga Nam Town of Soc Trang Province;

Suburban districts of Ca Mau Province, including: Nam Can, Cai Nuoc, U Minh and Tran Van Thoi;

Suburban districts, including Le Thuy, Quang Ninh, Bo Trach and Quang Trach, and Ba Don Town of Quang Binh Province.

4. Region IV includes remaining subregions./.

 

 

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