SOCIALISTREPUBLIC OF VIET NAM
Independence - Freedom – Happiness
Hanoi, August 22, 2011
STUMILATING REGION-BASED MINIMUM WAGE LEVELS FOR LABORERS WORKING FOR COMPANIES, ENTERPRISES, COOPERATIVES, COOPERATIVE GROUPS, FARMS, HOUSEHOLDS, INDIVIDUALS AND AGENCIES, ORGANIZATIONS EMPLOYING LABORERS
Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Labor Code dated June 23, 1994; the Lawon Amending and Supplementing a Number of Articles of the Labor Code dated April 2, 2002; and the Law on Amending and Supplementing a Number of Articles of the Labor Code dated June 29, 2006;
Pursuant to the Law on Enterprises dated November 29, 2005;
At the proposal of the Minister of Labor, War Invalids and Social Affairs,
Article 1. Subjects and scope of application
This Decree stimulates the region-based minimum wage levels for laborers working for companies, enterprises, cooperatives, cooperative groups, farms, households and individuals and agencies, organizations employing laborers, including:
1. The enterprises which are established; organized and managed; and operated under the Law on Enterprises (including Vietnam-based foreign-invested enterprises).
2. The cooperatives, cooperative unions, cooperative groups, farms, households, individuals and the other organizations of Vietnam employing laborers.
3. The foreign agencies, foreign organizations, international organizations and foreigners in Vietnam employing laborers (except the international agreements, which the Socialist Republic of Vietnam is a member, having provisions different from this Decree).
Companies, enterprises, organizations, and individuals defined in Clauses 1. 2 and 3 of this Article are collectively referred to as enterprises.
Article 2. Region-based minimum wage levels
To stipulate that the region-based minimum wage levels shall be applied from October 01, 2011 to December 31, 2012 as follows:
1. The level of VND 2,000,000/month applies to enterprises operating in localities of region I.
2. The level of VND 1,780,000/month applies to enterprises operating in localities of region II.
3. The level of VND 1,550,000/month applies to enterprises operating in localities of region III.
4. The level of VND 1,400,000/month applies to enterprises operating in localities of region IV.
Localities in which region-based minimum wage levels will be applied are specified in the Appendice attached to this Decree
Article 3.Application of region-based minimum wage levels
1. The region-based minimum wage levels specified in the Article 2 of this Decree are the lowest wage level used as the basic for enterprises and laborers making agreement on wage paid to laborers.
2. The lowest wage levels paid to laborers who have attended vocational training (including training conducted by enterprises’s own) must be at least 7% higher than the region-based minimum wage levels specified in Article 2 of this Decree;
3. The region-based minimum wage levels specified in the Article 2 of this Decree are used as the basic for building wage levels in wage scales, wage tables, wage-based allowances, calculating wage levels indicated in labor contracts, and implementing other regimes adopted and issued by the enterprises according to their competence prescribed by the labor regulations:
4. Based on the region-based minimum wage levels specified in Article 2 of this Decree, the enterprises shall adjust wage levels in the wage scales, wage tables adopted and issued by them, the wages in labor contracts to meet the agreements and legal regulations.
5. The enterprises are encouraged to pay the wage to the laborers higher than the region-based minimum wage levels specified in Article 2 of this Decree:
Article 5.Organization of implementation
1. The Ministry of Labor. War Invalids and Social Affairs shall guide the implementation of this Decree.
2. The Ministry of Labor, War Invalids and Social Affairs shall presides over and coordinate with the Vietnam General Confederation of Labor, the Vietnam Chamber of Commerce and Industry, concerned ministries and sectors and provincial-level People's Committees, in progandizing, disseminating the region-based minimum wage levels specified in this Decree to employees and employers and inspecting and supervising the application of those wage levels; reporting to the Government for consideration and decision on the adjustment of minimum wage levels as prescribed.
Article 5. Effect
1. This Decree takes effect from October 05, 2011.
2. To annul Decree No.107/2010/ND-CP dated October 29, 2010 of the Government, stumulating region-based minimum wage levels for laborers working for Vietnamese companies, enterprises, cooperatives, cooperative groups, farms, households, individuals and other organizations employing laborers and Decree No.108/2010/ND-CP dated October 29, 2010 of the Government stipulating region-based minimum wage levels for vietnamese laborers working for foreign-invested enterprises, foreign agencies and organizations and international organizations and for foreigners in Vietnam; clause 3 of Article 7 of Decree No.22/2011 / ND-CP dated April 04, 2011 of the Government stimulating general minimum wage level.
3. To encourage enterprises to organize mid-shift meals for laborers. The price of mid-shift meal is agreed by the grassroots Union executive Committee or the interim Union executive Committee and laborers, to ensure the quality of mid-shift meals for employees.
4. The state-owned one-member limited liability companies, the parent company - the state corporations which have not yet developed the wage scale, wage tables as stipulated in the Decree No.101/2009/ND-CP dated November 05, 2009 of the Government; state companies which have not been transformed into limited liability companies or shareholding companies; organizations and units currently applying wage regimes like state-owned companies shall have the right to choose the minimum wage higher than general minimum wage prescribed by the Government to determine wage unit prices and wage funds of management officers from 2012 after meeting all conditions stipulated in Decree No.206/2004/ND-CP dated December 14, 2004; Decree 207/2004/ND-CP dated December 14, 2004; Decree No. 86/2007/ND- CP dated May 28, 2007; Decree No.141/2007/ND-CP dated September 05, 2007 of the Government and ensure wage increases of management officer not exceeding the wage increases of employees. In case of failure to satisfy all the conditions stipulated by the Government, but the wage calculated by regime of laborers lower than the region-based minimum wage levels specified in Article 2 of this Decree shall be calculated equal to the region-based minimum wage levels specified in Article 2 of this Decree.
4. The Ministers, heads of ministerial-level agencies, heads of governmental agencies, Presidents of People's Committees of provinces, cities directly under the centrol government, and agencies, enterprises are responsible for the implementation of this Decree.
ON BEHALF OF THE GOVERNMENT
Nguyen Tan Dung
LIST OF LOCALITIES APPLIED REGION-BASED MINIMUM WAGE LEVELS FROM OCTOBER 01, 2011
(Issuing together with the Government's Decree No.70/2011/ ND-CP of August 22, 2011)
1. Region I, covering the following localities:
- Urban districts and Gia Lam, Dong Anh, Soc Son, Thanh Tri, Tu Liem, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Me Linh and Chuong My rural districts and Son Tay town of Hanoi;
- Urban districts and Thuy Nguyen, An Duong, An Lao and Vinh Bao rural districts of Hai Phong city;
- The urban districts and Cu Chi, Hoc Mon, Binh Chanh, Nha Be rural district of Ho Chi Minh City;
- Bien Hoa City and Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom rural districts of Dong Nai province;