The Vietnamese Government formally proclaimed the previous draft increases for Minimum Monthly Wages in Vietnam for 2019 via Decree 157/2018/ND-CP. Employers should ensure contracts and payments to employees, together with their associated Unemployment Insurance contributions, meet the updated requirements detailed below.
INCREASES TO MINIMUM MONTHLY WAGE FROM 1 JANUARY 2019
Increases are applied to the specific salary for each Zones, which correspond to designated urban and rural areas across Vietnam. Employers should ensure that they are paying the minimum monthly wage to staff based upon the respective zone, along with ensuring they are making contributions to Unemployment Insurance ("UI"). UI contributions are capped at a maximum of 20 x the relevant minimum monthly wage, as detailed in the table below.
|Up Until 31/12/18||Up Until 31/12/18||From 01/01/19||From 01/01/19|
|Zone||Old Minimum Wage||Old UI Cap||New Minimum Wage||New UI Cap|
For further information contact:
Matthew Lourey, Managing Partner
Phan Thi Thu Thuy, Senior Manager - Accounting
Do Thi Thao, Manager - Accounting