The Government has issued Decree 157/2018/ND-CP dated 16 November on new minimum salaries which will be effective from 1 January 2019, replacing the previous Decree 141/2017

There are also some upgrades to the regional classifications

The regions are defined in the Appendix to Decree 157. There are some upgrades made to the regional classifications in comparison with Decree 141, including:

  • Upgrades from Region II to Region I: Cat Hai and Kien Thuy districts of Hai Phong city, Dau Tieng and Phu Giao districts of Binh Duong province and Phu My town of Ba Ria – Vung Tau province.
  • Upgrades from Region III to Region II: Gia Binh and Luong Tai districts of Bac Ninh province, Chau Thanh district of Tien Giang province and Dong Hoi city of Quang Binh province.
  • Upgrades to Region III: Tan Phuong district of Tien Giang province, Le Thuy, Quang Ninh, Bo Trach, Quang Trach districts and Ba Don town of Quang Binh province.

Contents of previous regulations are generally retained

  • Decree 157 retains existing regulations on application of minimum salaries, such as:
  • Salary paid to employees who have completed vocational training must be at least 7% higher than the minimum salary level.
  • In case an enterprise straddles adjacent areas with different applicable minimum salaries, the highest minimum salary rate must be paid.

Enterprises are prohibited from abolishing or reducing overtime, night shift, hardship and toxic salaries/allowances, etc. provided to employees when applying the new minimum salaries in accordance with the new decree.