Minimum wage for jobs in Vietnam

Having a clear understanding of how to hire and pay your employees in Vietnam is crucial to ensuring your company’s success.

The number of foreign workers coming to Vietnam has steadily risen in recent years, which accounts for 77,000 at the end of 2013. Different from recruitment policy in other Asian countries such as China,  Vietnamese entity is permitted to recruit foreigners to work as leader positions, experts, and skilled labor where local candidates are not yet able to meet production and business requirements.

The company is required to get approval for the employment of foreign workers in each position before official recruitment. The whole process takes place in 45 – 55 days, when President of the People’s Committee of the province approves the application to recruit foreign employees and the company completes all legal process to acquire and submit work permit of that foreigner.

As this process involves a lot of difficulties and takes quite some time, foreign companies prefer choosing to outsource the process of finding suitable candidates for employment. As a result of this trend, the number of recruitment firms specializing in the Vietnam labor market is increasing rapidly.

Accessing to the market of jobs in Vietnam, both employees and employers pay most attention to the following factors:

Wages

Wages range is different according to the location of employment and the type of skills and experience needed to complete the assignment.

In Vietnam, there are two kinds of minimum wages. The first type is the common minimum wage (VND1,150,000 or US$55) which is used to calculate salaries for employees in state-owned organizations and enterprises. This number also set the ceiling social contribution for all enterprises which is 20 times the common minimum wage. The second type of minimum wage is used for employees in all non-state enterprises based on zones as defined by the government. Currently, there are four different zones in Vietnam.

Jobs in Vietnam that relate to the most basic work under normal working conditions will receive this minimum wage level. For those who have particular experience or training (including company training), wages will be at least seven percent higher than minimum wage rates

A Vietnam wage comparison

In order to understand what makes the difference between wages in Vietnam and China, it is necessary to have a look at the side by side comparison.  In this case, we will have a deeper look at the salaries for both a Junior Accountant and an Accountant who has two years of working experience.

Social Security should be the first thing to take into account. It should also be noted that, in addition to the payment of basic wages, another key obligation that an employer has in Vietnam is the payment of social security. Therefore, besides the minimum wage, the employers in Vietnam job market are required to pay for the social contribution to the security. That explains for some differences in the way minimum wage is set.

For further information about jobs in vietnam, access to Vietlambank website: http://vieclambank.com

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