HR2B Legal Alert #1 - New Regional Minimum Wage from 01/01/2016

Ho Chi Minh 10333

November 14 2015, the government issued Decree # 122/2015/NĐ-CP of increase in the minimum wage applicable to all enterprises in Viet Nam as below:

See Decree 122/2015/NĐ-CP and the list of localities belong which region

The affect of this change:

  • The salary of untrained worker can not be lower than this minimum regional wage
  • The salary of trained worker must be higher than at least 7% of minimum regional wage
  • The cap for Unemployment Insurance (UI) is changed accordingly, equals to 20 times of minimum regional wage

HR Professional check list

  1. Identify who in your organisation needs to adjust salary.
  2. Calculate the extra UI cost with the increased cap from January 1 2016.
  3. Prepare a proposal for your board of directors / management to ensure there are salary funds available for the increase.
  4. Communicate the change to your affected staff.
  5. Check January payroll for compliance.

If you are the customer of HR2B, we are ready to help you for any query concerned to this matter. Moreover we could assist you to check your all employee who has salary wage under new region minimum wage and inform to you for your next action to make sure everything is done correctly and in accordance with law.

If you are not a client of HR2B, please call us to know HR2B can help you what and regularly update the latest changes of the regime of the law of Vietnam.

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