18 Dec Basic And Minimum Wages To Rise In 2018
Since 1995, basic wage has been increased for 15 times, initially, there was only VND 120,000; from Jul 1st 2018 this figure will be VND 1,390,000. The Government has decided to increase minimum wages 2018 by VND 180,000-230,000 per month to VND 2.76-3.98 million per month depending on regions from January 1st, 2018.
Basic And Minimum Wages 2018
According to Decree 141/2017/ND-CP, employees working for enterprises in region one comprising major cities and provinces will enjoy a new minimum salary of VND3.98 million while the new levels for those in regions two, three and four will be VND3.53 million, VND3.09 million and VND2.76 million respectively.
Salaries of workers in normal conditions must not be lower than minimum wages. As for skilled workers, they pay must be at least 7% higher than the minimum wages 2018 by region.
When raising minimum wages 2018 for their staff, employers are prohibited from removing or cutting allowances for workers who work overtime, at night or in a toxic environment. Other allowances, subsidies, and bonuses must be maintained as stated in labor contracts, collective labor agreements, and enterprises’ regulations.
Because of the raising, the cap of unemployment insurance increase up to 79,600,000 VND (20 times of minimum wages 2018), however, cap of unemployment insurance is 60% of average wages of 06 latest employment months.
And from July 01st, 2018, the basic salary increases from VND 1,300,000 to VND 1,390,000. This raising makes the cap of wages for Social insurance and Health insurances increase up to VND 27,800,000.
How to follow the regulations properly and optimally?
- To collect the employee’s profiles properly.
- Prepare labor contracts, labor agreements with technical terms and conditions.
- Registration for your internal Labor rules and conduct code.
- Prepare monthly payrolls and compulsory reports of social insurance, personal income tax…
- Update for the latest regulations and get necessary confirmation/certificate from competence state agencies.
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