It will serve as a foundation to adjust social, health, unemployment, work injury and occupational disease insurance.

On November 15, 2019, the Government issued Decree 90/2019/NĐ-CP stipulating region-based minimum wage applied to employees working under labour contracts.

Accordingly, since January 2020, the region-based minimum wage will increase from VND150,000 (US$6.5) to VND240,000 ($10).

HCM City’s social security agency sent a document to local employers to ask them to increase the wage rate which is not allowed to be lower than the minimum wage rate set by the Government.

The minimum wage for workers in Củ Chi, Hóc Môn, Bình Chánh, Nhà Bè districts is VND4.42 million ($192) per month.

In Can Gio District, the wage is set at least VND3.92 million ($170).

Enterprises must adjust the wages inscribed in the labour contracts as a basis for payment of insurance.

Enterprises must pay wages and insurance to employees who take on the most simple work on the principle of not paying lower than the regional minimum wage. Skilled workers who have passed vocational training must be paid at least 7 per cent higher than the regional minimum wage.

The enterprises have been ordered to submit the adjustment to the social security agency no later than February 28, 2020./.