18 Dec Basic And Minimum Wages To Rise Next Year 2020
Basic and regional minimum wages are tending to increase gradually with the years and directly affect payroll deductions of both enterprise and employees. VIVA would like to provide our valued clients some information as below:
Since 1995, there have been a total of 17 increases in minimum wages, initially from 120,000VND to 1,490,000VND while consumer prices in the same period increased by only 5.6 times (*).
From January 1st 2020, the regional minimum wages continuously increase
+ Region I: 4.420.000 VND/ month (Increasing 240,000 compared to 2019);
+ Region II: 3.920.000 VND/ month (Increasing 210,000 compared to 2019);
+ Region III: 3.430.000 VND/month (Increasing 180,000 compared to 2019);
+ Region IV: 3.070.000 VND/ month (Increasing 150,000 compared to 2019).
Because of the increasing of the regional minimum wages, the maximum wages when participating in Accident Insurance is 88.400.000VND (20 times the regional minimum wages). However, unemployment benefit is 60% of average salary of 6 consecutive months over which the unemployment insurance premiums are paid before unemployment and maximum no more than 5 times the regional minimum wages at the time of termination of labor contract (similar to the maximum benefit is 5 x 4.420.000 = 22.100.000VND/month).
Similarly, from July 1st 2020, the minimum wages are expected to increase from 1,490,000 VND to 1,600,000VND. The rising in the minimum wages makes the maximum wages when participating in Social Insurance and Health Insurance increase up to 32,000,000VND.
(*) MINIMUM WAGES THROUGH THE YEARS
|LAW & REGULATIONS||EFFECTIVE DATE||MINIMUM WAGES IN GENERAL|
|Government – Decree No. 05|
|Government - Decree No. 06|
|Government -Decree No. 175/1999|
|Government - Decree No. 77/2000 |
|Government - Decree No. 03/2003 |
|Government - Decree No. 118/2005|
|Government - Decree No. 94/2006 |
|Government - Decree No. 166/2007 |
|Government - Decree No. 33/2009|
|Government – Decree No. 28/2010|
|Government - Decree No. 22/2011 |
|Government - Decree No. 31/2012|
|Government – Decree No. 66/2013|
|Government - Decree No. 47/2016 |
|Government - Decree No. 47/2017|
|Government – Decree No. 72/2018 Date 15/05/2018||01/07/2018||1.390.000|
|Government - Decree no. 38/2019 |
LIST OF THE REGIONS: Download
VIVA has been an in-depth consultant on business compliance procedures in Vietnam since 2006, based on our professional - integrated background in Business laws - Accounting and corporate finance - Tax management - Labor relation and payroll – Business administration procedures. VIVA offers exclusive services in an integrated tailor-made, consist of 5 specialized-expertise platforms and the inheritance experience up to hundreds of years for every job.
Our extensive expertise and management system that facilitates us to connect local resources and be ready to deliver exclusive solutions that exceed all standard limits and satisfy all expectations of our clients.