Work and Wages

Minimum Wage

In accordance with section 91 of the Labour Code 2012, workers' salary must at least be equal to the minimum wage, i.e., a wage which will ensure the minimum living needs of the employees and their families and which is based on the local social & economic conditions as well as the normal wage in the labour market.

In accordance with the Labour Code 2012, Government shall announce the regional minimal wage on the basis of the recommendations of the National Wages Council. The minimum wage rate is determined on hourly, daily, and monthly basis for different sectors and regions. The region based minimum wage rates during 2014 were as follows (Decree No. 182/2013/NĐ-CP): VND 2,700,000/month applies to enterprises operating in localities of region I; VND 2,400,000/month applies to enterprises operating in localities of region II; VND 2,100,000/month applies to enterprises operating in localities of region III; and VND 1,900,000/month applies to enterprises operating in localities of region IV.

In accordance with the Decree No. 103/2014/NĐ-CP, the region based minimum wage for unskilled workers from 01 January 2015 onward is as follows: VND 3,100,000/month applies to enterprises operating in localities of region I; VND 2,750,000/month applies to enterprises operating in localities of region II; VND 2,400,000/month applies to enterprises operating in localities of region III; and  VND 2,150,000/month applies to enterprises operating in localities of region IV.

The above region based minimum wage levels are applicable to the labourers working under labour contract for companies, enterprises, cooperatives, cooperative groups, farms, households, individuals, agencies, and organizations employing labourers. Wages may be determined by agreement between the workers and the employer (employment contract) as well through collective bargaining agreement however these can't be lower than the above specified minimum wage levels. The new Decree further requires that the minimum wage rate of  a trained worker must at least be 7% higher than the region based minimum wage rate. The wage level for heavy, hazardous and dangerous working conditions must at least be 5% (7% for special hazardous conditions) higher than the regional minimum wage rate.

Employers may agree with probationary workers to pay a probation salary equal to at least 85% of the normal wage. If an apprentice (during apprenticeship or vocational training) directly or indirectly produces products for sale, wages must be agreed between the parties (apprentice and the enterprise). Temporary workers are entitled to the same wage as other workers, plus any additional benefits.

sources: §28, 61, 91-93 of Labour Code (Law No. 10/2012/QH13); Decree No. 103/2014/NĐ-CP; Decree detailing the Implementation of a Number of Articles of the Labour Code on Wages (No 49/2013/ND-CP); Decree No. 182/2013/NĐ-CP

Regular Pay

An employer may make the payment of wages by time (hourly, daily, or on monthly basis), piecework or completion of a task. The only condition is that the chosen form of payment is maintained for a certain period. In case of any change, the employer must notify the worker(s) at least 10 days in advance.

Wages may be paid in cash or paid directly into an employee's individual bank account. The employees must be paid wages directly, fully and in a timely manner. In case the wages are not paid in a timely manner, it must not be later than 01 month (from its due date) and the employer must pay the employee an additional amount which is equal to the deposit interest rate announced by the State Bank of Vietnam at the time of payment.  

In accordance with the provisions of Labour Code, an employer is under the obligation to pay workers the wages: at least once in 15 days to employee whose salary is determined on hourly, daily or weekly basis; at least once a month or once a fortnight to employee whose salary is determined on monthly basis; and as agreed upon between the parties for the employees whose salaries are determined on the basis of product (completion of a task) and piecework. If the work has to be done in many months, the monthly salary shall be advanced by the volume of work done during the month.

The employer is only entitled to deduct the salary of employee for the compensation of damages of tools and equipment of the employer to the extent only as provided under the Labour Code. Employee must be informed about the reasons for deduction of salary however the monthly deduction cannot exceed 30% of employee's monthly salary after the payment of compulsory social insurance, health insurance, unemployment insurance and income tax.

sources: §94-96 & 101 of Labour Code (Law No. 10/2012/QH13)

Regulations on Work and Wages

  • Luật Lao động, 2012 / Labour Code, 2012

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