Headlines 19/11/2019 07:38 SA

Region-specific minimum pay rates officially in force from January 1, 2020

Phương Ngọc

The Government has promulgated the Decree No. 90/2019/ND-CP as a replacement for the Decree No. 157/2018/ND-CP prescribing region-specific minimum pay rates for employees working under employment contracts.

Pursuant to the Decree, the region-specific minimum pay rates applied from January 1, 2020 will be increased from 160,000 to 200,000 dong/month relative to administrative subdivisions, specifically including:

- Employees working for enterprises operating within the region I will be paid 4,420,000 dong/month (increased by 240,000 dong in comparison with the pay rate specified in regulations currently in effect in the Decree No. 157);

- Employees working for enterprises operating within the region II will be paid 3,920,000 dong/month (increased by 210,000 dong/month);

- Employees working for enterprises operating within the region III will be paid 3,430,000 dong/month (increased by 180,000 dong/month);

- Employees working for enterprises operating within the region IV will be paid 3,070,000 dong/month (increased by 150,000 dong/month).

Mr Bui Tuong Vu, Legal Advocate and Director of THƯ VIỆN PHÁP LUẬT Co., emphasized:  “Region-specific minimum pay rates increased by 150,000 – 240,000 dong/month will help the average employee income hike up, making sure that they can pay basic living expenses according to the schedule specified in the Resolution No. 27-NQ/TW dated May 21, 2018 of the Party Central Committee on reform of wage and salary policies.    However, this also affects costs that enterprises have to pay. Nevertheless, since many enterprises pay more than the region-specific minimum pay rates of 2019, the aforesaid increases in minimum pay rates of 2020 will mainly affect Social Insurance contribution costs”.

Administrative units, including urban or suburban districts, towns and provincial cities, will be subject to regulations on increases in region-specific minimum pay rates;

List of Region I, II, III and IV areas subject to these regulations is annexed as an Appendix to this Decree.

The Decree No. 90/2019/ND-CP is entering into force on January 1, 2020.



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