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Minimum Region Salary Increases from VND1.4 to VND2 Million as of October 1

August 22, 2011, the government signed a decision to issue Decree no. 70/2011/ND-CP on the minimum region wage for workers in companies, cooperatives, farms, and households, and for those working for individuals, agencies, and organizations.

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Accordingly, between October 1, 2011 and December 31, 2012 the minimum region wage will be adjusted as follows: VND2 million per month for companies in region 1; VND1,780,000 VND per month for companies in region 2; VND1,550,000 VND per month for companies in region 3; and VND1,400,000 VND per month for companies in region 4.

Thus, in comparison with the minimum wage stipulated in Decree no. 107 and no. 108, the new minimum wage will increase by VND300,000 to VND650,000 per month according to each region.

As of October 1 the minimum wage for workers will increase

The decree states that the minimum wage stipulated in the Decree is the lowest that is a basis for employers and workers to agree upon their wages.

The lowest wage paid for workers undergoing vocational training (including workers that get training at companies) must be at least 7 percent higher than the minimum region wage.

The minimum wage is used as a basis to determine levels of wages and allowances and how to calculate levels of wages in employment contracts and follow other regulations required by law.

Based on the minimum region wage stipulated in this Decree, employers will adjust levels of salaries in the salary scale designed and issued by companies in a way that is in accordance with agreements and regulations in employment contracts.

It is necessary to encourage employers to pay higher wages than the minimum one for and to offer mid-shift meals to their employees. The mid-shif meal costs will be determined by employers, the executive committees at grassroots labor unions or the contemporary executive committee at labor unions, and employees to make sure that the quality of meals is maintained.

In Dong Nai, region 1 are Bien Hoa city, and Nhon Trach, Long Thanh, Vinh Cuu, and Trang Bom districts, region 2: Long Khanh town, and Xuan Loc and Dinh Quan districts, and region 3:  other districts.

Reported by P.V, Translated by Duy Minh

Author: phongvien

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