Minimum wage for foreign workers?

DungTran October 27, 2021

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Minimum wage for foreign workers? Let us learn about this topic with LSX law firm as follow:

Foreign workers

Currently, from the perspective of the Social Insurance Law, “foreign workers” are “foreign citizens working in Vietnam with a work permit; practicing certificate or practicing license issued by a competent Vietnamese agency”. If foreigners want to be Vietnamese, they must do the dossier to apply for Vietnamese citizenship for foreigners. According to this regulation, there are two criteria to determine that foreign workers entitled to participate in compulsory social insurance in Vietnam:

(i) foreign nationals and (ii) work permits.

– Foreign citizen means a person with a foreign nationality; foreign nationality means the nationality of a country other than the Socialist Republic of Vietnam.

– Work permit is proof that foreign workers are eligible to work legally in Vietnam. This is the type of document issued by competent Vietnamese authority to foreign workers; when suitable to work in Vietnam. That is, the work permit will prove that the licensee is protected by Vietnamese law under Vietnam’s labor law and that their legal rights are adequately protected.

Foreign workers who come to work in Vietnam without a work permit (called underground workers) will be deported from the Vietnamese territory. According to current regulations, a work permit is only valid for a maximum of 2 years. Before the work permit expires, the person named on the work permit must apply for an extension of the work permit if he wants to continue working; or return the expired work permit to the foreign employer, then return this work permit to the issuing agency.

Minimum wage for foreign workers?

According to the provisions of Articles: Article 2.3 of Decree 103/2014/ND-CP stipulating the regional minimum wages for employees working in enterprises, cooperatives, cooperative groups, farms and households families, individuals and agencies and organizations that hire workers under labor contracts, with regulations on subjects and minimum wages for each region as follows:

Article 2. Subjects of application

Firstly, enterprises established, organized, managed, and operated under the Law on Enterprises (including foreign-invested enterprises in Vietnam that have not been re-registered or have not yet converted as prescribed in Point a, Clause 2, and Clause 2 of this Article). 3 Article 170 of the Enterprise Law).

Secondly, cooperatives, cooperatives, cooperatives, cooperative groups, farms, households, individuals, and other organizations of Vietnam employ labor under labor contracts.

Thirdly, foreign agencies, organizations, international organizations, and foreigners in Vietnam hire workers under labor contracts (except in the case of international treaties to which the Socialist Republic of Vietnam is signed); being a member has provisions different from those of this Decree).

Enterprises, cooperatives, unions of cooperatives, cooperative groups, farms, households, agencies, organizations, and individuals specified in Clauses 1, 2, and 3 of this Article hereinafter collectively is an enterprise.

Article 3. Regional minimum wage

1. The regional minimum wage regulations applicable to enterprises are as follows:

Firstly, the level of 3,100,000 VND/month, applicable to enterprises operating in the area of the region I.

Secondly, the level of 2,750,000 VND/month, applicable to enterprises operating in the area of region II.

Thirdly, the level of 2,400,000 VND/month, applicable to enterprises operating in the area of Region III.

Lastly, the level of 2,150,000 VND/month, applicable to enterprises operating in the area of Region IV.

2. Areas in regions I, II, III, and IV are specified in the Appendix to this Decree.”

=> Accordingly, the current law stipulates the minimum wage for enterprises, cooperatives… to serve as a basis for paying wages to employees, and there is no separation between foreign and domestic workers. Vietnamese workers, so for foreign workers, you still apply the minimum wage as prescribed above.