According to Decree 153/2016/NĐ-CP, dated 14th Nov 2016, the minimum wage applicable to private business will increase from 6% to 7% compared to the old. Effect from 1 Jan 2017.
For trained workers, minimum wage is:
Effect to employer
- Increased salary cost for low salary staff.
+ Increase to lowest paid.+ Affect those with training who must be paid at least 7% above the new minimum wage.
- Increased Unemployment Insurance contributions for those with salary is greater than the current cap to new cap.
+ The salary cap for Unemployment Insurance (UI) is changed accordingly, equals to 20 times of minimum regional wage
HR professional check list
- Check that employees are paid at least the minimum wage for their zone
- Plan the increase of budget for salary, Social - Medical - unemployment insurance accordingly
- Communicate the change to your affected staff.
- Check January payroll for compliance
What do you need to do?
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, new common minimum wage and inform to you for your next action to make sure everything is done correctly and in accordance with law.
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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.