Minimum wage and basic wage (2020)

Minimum wage and basic wage (2020)

Minimum wage and basic wage (2020)

15 April, 2020


In this article we will clarify basic wage and minimum wage.

1. Minimum wage

Is the wage determined by the Vietnam government, the employers are not allowed to pay employees less than that regulated minimum wage.

Minimum wage is categorized by region and called region minimum wage (there are 4 regions in Vietnam: Region I, II, III, IV, each region with a different minimum wage).

New table of minimum wage applied from 1st January, 2020 by decree 90/2019/ND-CP of the government, as following:

Province or CityDistrictRegionMinimum wage
(VND/month)
Ha NoiCenter district
Suburb
I
II
4.420.000
3.920.000
Hai Phongall districts except
‘bach long vi’
I4.420.000
Ho Chi Minhall districts except
‘can gio’
I4.420.000
Dong NaiCenter district
Suburb
I
II
4.420.000
3.920.000
Binh Duongall districtsI4.420.000
Hai DuongHai duong city
Districts 1
Districts 2
I
III
IV
4.420.000
3.430.000
3.070.000
Hung YenDistricts 1
Districts 2
II
III
3.920.000
3.430.000
Vinh PhucDistricts 1
Districts 2
II
III
3.920.000
3.430.000
Bac Ninhall districtsII3.920.000
Thai NguyenDistricts 1
Districts 2
II
III
3.920.000
3.430.000
Da Nangall districtsII3.920.000
Binh ThuanDistricts 1
Districts 2
Distric 3

II
III
IV
3.920.000
3.430.000
3.070.000
Can ThoDistricts 1
Districts 2
II
III
3.920.000
3.430.000
Ha NamDistricts 1
Districts 2
III
IV
3.430.000
3.070.000
Hoa BinhDistricts 1
Districts 2
III
IV
3.430.000
3.070.000
Phu YenDistricts 1
Districts 2
III
IV
3.430.000
3.070.000
Ninh ThuanDistricts 1
Districts 2
III
IV
3.430.000
3.070.000
Cao BangDistricts 1
Districts 2
III
IV
3.430.000
3.070.000
Dien BienDistricts 1
Districts 2
III
IV
3.430.000
3.070.000
There are total 63 provinces/ cities in Vietnam, if you want more do not hesitate to contact us.


2. Basic wage

Is the wage negotiated between the employer and employee and be specified in the labor contract. It is the basic to calculate for employee’s actual paid salary in that company.

When determine basic wage, employers must ensure basic wage is always higher than minimum wage of that region at a certain time.

For a worker who is vocationally trained, the employer must add at least 7% of the minimum wage for him.

For example:

Calculate minimum salary of a vocationally trained worker in Ha Noi (Region 1) 2020:

In 2020 minimum wage of a worker in Hanoi is 4.420.000 VND.

So his minimum salary he can recieve is 4.420.000 + 4.420.000*7% = 4.729.000 VND.