18 Dec Basic And Minimum Wages To Rise In 2018
The Government has decided to increase minimum monthly wages by VND180,000-230,000 to VND2.76-3.98 million depending on regions from January 1, 2018. VIVA would like to send you information about the basic and minimum wages 2018 as follows:
According to Decree 141/2017/ND-CP, employees working for enterprises in region one comprising major cities and provinces will enjoy a new minimum salary of VND3.98 million while the new levels for those in regions two, three and four will be VND3.53 million, VND3.09 million and VND2.76 million respectively.
Salaries of workers in normal conditions must not be lower than minimum wages. As for skilled workers, they pay must be at least 7% higher than the minimum wage by region.
When raising minimum wages for their staff, employers are prohibited from removing or cutting allowances for workers who work overtime, at night or in a toxic environment. Other allowances, subsidies and bonuses must be maintained as stated in labor contracts, collective labor agreements and enterprises’ regulations.
Because of the raising, the cap of unemployment insurance increase up to 79,600,000 VND (20 times of minimum wage), however, cap of unemployment insurance is 60% of average wages of 06 latest employment months and will not be exceed five times of minimum wages, 5 x 3.980.000 = VND19,900,000.
And from July 01st, 2018, the basic salary increases from 1,300,000 VND to 1,390,000 VND. This raising makes the cap of wages for Social insurance and Health insurances increases up to 27,800,000 VND.
How to follow the regulations properly and optimally?
- To collect the employee’s profiles properly.
- Prepare labor contracts, labor agreements with technical terms and conditions.
- Registration for your internal Labor rules and conduct code.
- Prepare monthly payrolls and compulsory reports of social insurance, personal income tax…
- Update for the latest regulations and get necessary confirmation / certificate from competence state agencies.
With more than 10 years of delivering business consultation for more than 1000 foreign representative offices in Viet Nam, Viva Business Consulting is capable to consult and implement any query you have in the most practical way. We prevent your business from any potential risks in advance so you can manage foreign employees in the most simple and cost effective way.