Vietnam Labour Law Update (December 2016)
December 1, 2016
On 14 November 2016, the Government Office issued Official Letter 9794/VPCP-KGVX on the Lunar New Year holidays for the year of the Rooster 2017 for officials and public servants and employees of public administrative agencies,...
I. SCHEDULE OF LUNAR NEW YEAR HOLIDAYS – FOR THE YEAR OF THE ROOSTER 2017
On 14 November 2016, the Government Office issued Official Letter 9794/VPCP-KGVX on the Lunar New Year holidays for the year of the Rooster 2017 for officials and public servants and employees of public administrative agencies, political organizations, socio-political organizations, specifying 07-consecutive-days leave from Thursday 26 January 2017 to Wednesday 01 February 2017 (i.e. leave will take place from 29 December of the year of the Monkey 2016 to 5 January of the year of the Rooster 2017 inclusive).
Therefore, our readers should arrange your companies’ leave schedules in accordance with the public administrative agencies’ working schedule to ensure that your business activities run smoothly.
II. REGION-BASED MINIMUM SALARY WILL INCREASE FROM 1 JANUARY 2017
On 14 November 2016, the Government issued Decree No. 153/2016/ND-CP on the region-based minimum salary for those who work under labour contracts. With effect from 01 January 2017, the region-based minimum salary will increase by between 7.1% to 7.5% as compared to the current levels. Details are as below:
| Region |
Current (Decree 122/2015/ ND-CP) |
With effect from 01/01/2017 (Decree 153/2016/ ND-CP) |
Increase rate |
| 1 | 3,500,000 VND/month | 3,750,000 VND/month | 7,1% |
| 2 | 3,100,000 VND/month | 3,320,000 VND/month | 7,1% |
| 3 | 2,700,000 VND/month | 2,900,000 VND/month | 7,4% |
| 4 | 2,400,000 VND/month | 2,580,000 VND/month | 7,5% |
Companies should please note that the salary paid to trained employees must be at least 7% higher than the prescribed region-based minimum salary.
Decree No. 153/2016/ND-CP replaces Decree No. 122/2015/ND-CP of 14 November 2015 issued by the Government. For more details, please refer to the link below
III. MINIMUM BASIC SALARY WILL INCREASE FROM 1 JULY 2017:
On 11 November 2016, the National Assembly approved the Resolution on State budget estimates for 2017. As a result, the National Assembly authorized the Government to implement the increase in basic salary up to 1,300,000 VND/month with effect from 1 July 2017 (the current basic salary is 1,210,000 VND/month). We will update you on the decree providing guidance on this new basic salary as soon it is issued to replace Decree No. 47/2016/ND-CP.
Our readers should please take note of the changes above in preparing your 2017 budget to ensure all costs are covered in the approved plan.
This is not a formal legal document.
All information in this document is for reference and general guidance purposes only.
Kindly contact to Talentnet consultant to apply with respect to specific cases:
Payroll and HR Outsourcing Services
Ho Chi Minh City
Nguyen Thi Thanh Huong
Hanoi
Nguyen Thi Thu Huong
Do Thi Thu Huong