Basic And Minimum Wages To Rise in 2020

Basic And Minimum Wages To Rise in 2020

(Last Updated On: March 9, 2021)

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 

Currency: VND

LAW & REGULATIONSEFFECTIVE DATEMINIMUM WAGES IN GENERAL
Government – Decree No. 05
Date 26/01/1994
01/01/1995120.000
Government - Decree No. 06
Date 21/01/1997
01/01/1997144.000
Government -Decree No. 175/1999
Date 15/12/1999
01/01/2000180.000
Government - Decree No. 77/2000
Date 15/12/2000
01/01/2001210.000
Government - Decree No. 03/2003
Date 15/01/2003
01/01/2003290.000
Government - Decree No. 118/2005
Date 15/09/2005
01/10/2005350.000
Government - Decree No. 94/2006
Date 07/09/2006
01/10/2006450.000
Government - Decree No. 166/2007
Date 16/11/2007
01/01/2008540.000
Government - Decree No. 33/2009
Date 06/04/2009
01/05/2009650.000
Government – Decree No. 28/2010
Date 25/03/2010
01/05/2010730.000
Government - Decree No. 22/2011
Date 04/04/2011
01/05/2011830.000
Government - Decree No. 31/2012
Date 12/04/2012
01/05/20121.050.000
Government – Decree No. 66/2013
Date 27/06/2013
01/07/20131.150.000
Government - Decree No. 47/2016
Date 26/05/2016
01/05/20161.210.000
Government - Decree No. 47/2017
Date 24/04/2017
01/07/20171.300.000
Government – Decree No. 72/2018 Date 15/05/201801/07/20181.390.000
Government - Decree no. 38/2019
Date 09/05/2019
01/07/20191.490.000

LIST OF THE REGIONSDownload

 

WHO WE ARE

  • VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006.
  • The insights and consistent backgrounds in Business Laws - Accounting and Corporate Finance - Tax Management – Labor Relations and Payroll - Secretarial services help us build trust and confidence in the entrepreneurs’ community.
  • We have been successfully providing service for thousands of leading companies from Hong Kong, Japan, US, EU, Singapore, India, China, Korea…. in forms of FDI companies, Foreign representative offices, Foreigner working in Vietnam, Vietnamese SMEs, Chief Operation Officers.
  • VIVA's logo is our Brand name, our signature, it states our faith - independence - transparence - and loyalty for client's interest. The signature is commitment and honor on our outstanding expertise and professionalism. It is the symbol of good standing for our clients whenever they are doing business with customers, partners, the local competent state agencies...

 

Chat with Consultants


 

Read more:

Taxable Incomes From Wages To Rise Next Year

Wage Regulations – Transparency in Labor Relations

The Proactive Management Of Wage Labor Compliance Procedure 2019

Labor Relations Management In Vietnam – The Key Compliance Procedures



error: Alert: Content is protected !!