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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No:
49/2013/ND-CP
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Hanoi, May 14,
2013
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DECREE
DETAILING
THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE LABOR CODE ON WAGES
Pursuant to the Law on Government
organization,of December 25, 2001;
Pursuant to the Labor Code, of
June 18, 2012;
At the proposal of Minister of
Labor, Invalids and Social Affairs;
The Government promulgates the
Decree detailing the implementation of a number of articles of the Labor Code
on wages,
Chapter 1.
GENERAL PROVISIONS
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This Decree provides the functions,
tasks and organizational structure of the National wage Council as prescribed
in clause 2 Article 92; principles for formulation of wage scales, payroll and
labor productivity norms as prescribed in clause 1 Article 93 of the Labor
Code.
Article 2. Subjects of application
1. Members of the National Wage
Council as prescribed in clause 1 Article 92 of the Labor Code.
2. The employees working under the
regime of labor contract specified in clause 1 Article 3 of the Labor Code.
3. The employers as prescribed in
clause 2 Article 3 of the Labor Code (hereinafter referred to as enterprises).
4. Agencies, organizations and
individuals relating to regulation and implementation of the functions, tasks
and organizational structure of the National wage Council and formulation of
wage scales, payroll and labor productivity norms as prescribed in this Decree.
Chapter 2.
THE NATIONAL WAGE COUNCIL
Article 3. The functions of the
National Wage Council
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2. The Prime Minister shall decide
establishment of the National Wage Council.
Article 4. The tasks of the
National Wage Council
1. Analyzing socio-economic
situation, the residential living level to define, forecast the minimum living
demand of employees and their family; assessing the implementation of the
region-based minimum wages, the wage levels on the labor market and the payment
capacity of enterprises in order to formulate and advise the Government about
the annual plans on region-based minimum wages and plans in each period.
2. Researching, advising the
Government about minimum wages based on hour applicable to some irregular
careers, jobs or part-time affairs.
3. Reviewing, assessing about the
regional division in applying the region-based minimum wages in order to advise
the Government in adjustment, supplementation of the regional division when
applying the region-based minimum wages.
4. Surveying actuality, studying
foreign experiences in order to enhance capability and efficiency of advisory
on the minimum wages.
5. Studying, advising other matters
relating to the wage regimes at the request of the Government, the Prime
Minister.
Article 5. The organizational
structure of the National Wage Council
1. The National Wage Council includes
15 members: 05 members representing for the Ministry of Labor, War Invalids and
Social Affairs, 05 members representing for the Vietnam General Confederation
of Labour and 05 members representing for organizations representing for the
employers at the central level, in which:
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b. Three deputy chairpersons include:
A deputy chairperson is deputy chairperson of the Vietnam General Confederation
of Labour, a deputy chairperson is deputy chairperson of the Vietnam Chamber of
Commerce and Industry and a deputy chairperson is deputy chairperson of the
Vietnam cooperative Union;
c. Members of the Council include:
Four members of the Council are representatives of the Ministry of Labor,
Invalids and Social Affairs; four members of the Council are representatives of
the Vietnam General Confederation of Labour; a members of the Council is
representative of the Vietnam Association of medium and small enterprises; two
members of the Council are representatives of two Trade Associations employing
many laborers at central level.
2. The Prime Minister shall appoint
the chairperson and deputy chairpersons of the National Wage Council at the
proposal of the Minister of Labor, Invalids and Social Affairs and authorize
for the Minister of Labor, Invalids and Social Affairs in appointing members of
the National Wage Council.
3. Chairperson, Deputy Chairpersons
and Members of the National Wage Council are persons specialized and having
experiences in the field of labor, wages; having qualification and capacity to
consider, propose requirements of agencies that are represented by them and having
conditions to participate in activities of the National Wage Council.
Chairperson, Deputy Chairpersons and Members of the National Wage Council work
under the part-time regime, with 05-year term.
4. The National Wage Council has a
technical division and a permanent division assisting the Council in studying,
surveying, summing, formulation the plan on region-based minimum wages,
regional division in applying the minimum wages in order to give out for
discussion at the Council and implement the administrative mission of the
Council.
5. Operational fund of the National
Wage Council is ensured by the State budget, included in the annual budget
estimates of the Ministry of Labor, Invalids and Social Affairs and other
legally-mobilized sources in accordance with law.
Article 6. The working regulation
of the National Wage Council
1. The Chairperson of the National
Wage Council shall provide the working regulation of the National Wage Council,
the technical division and permanent division.
2. The Chairperson of the National
Wage Council may invite experts, scientists, researchers of Ministries,
sectors, Study Institutions, universities for consulting or participating in
meetings of the Council.
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PRINCIPLES FOR FORMULATION OF WAGE SCALES, PAYROLL AND
LABOR PRODUCTIVITY NORMS
Article 7. Principles for
formulation of wage scales, payroll
1. Based on the production
organization, labor organization, enterprises may formulate and decide the wage
scale, payroll for laborers involved in managerial, professional or
technical work and workers directly involved in production, business and
service activities.
2. The multiple of the wage scale is
the different coefficient of the wage level for work or title requiring the
highest technical qualifications as compared to the work or title requiring the
lowest technical qualifications, the number of grades of the wage scale and
payroll depends on the complexity of the management and work or title
requirements. The gap between two conse-cutive wage grades must ensure encouragement
to laborers to raise the technical and professional qualifications as well as
experience accumulation and talent development but at least equal to 5%.
3. Companies
shall define the lowest wage level
(the start level) of work or title in
the wage scale and payroll on the basis of the complexity of work or title
corresponding to the qualifications, skills, duties, experiences to implement
work or title, of which:
a. The lowest
wage level of the simplest work or title in normal labor conditions shall be
not lower than the region-based minimum wage level prescribed by the
Government;
b. The lowest wage level of the work
or title requiring laborers to have to be received vocational training
(including laborers trained by enterprises themselves) must be at least 7%
higher than the region-based minimum wage levels prescribed by the Government;
c. The wage level of work or title
with the heavy, hazardous and dangerous labor conditions must be at least 5%
higher; work or title with the special heavy, hazardous and dangerous labor
conditions must be at least 7% higher than the wage level of work or title
having the equivalent complexity but working in normal labor conditions.
4. When formulating and applying the
wage scale, payroll must ensure equality, non-discrimination on gender,
ethnicity, skin color, social class, marriage status, credence, religion, HIV
infection, disability or due to reason of establishment, acceding and operation
of the Trade Union for laborers, and must formulate standards to rank wage,
conditions to raise the wage grade.
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6. When formulating or amending and
supplementing wage scales, payroll, enterprises must consult organizations
representing for labor collectives at enterprises and publicly at the working places of laborers before implementation, and send to the
labor state management agencies at district level where enterprises located
their production facilities. For State-owned one-member limited liability
companies, when formulating or amending and supplementing wage scales, payroll,
they must report owners to be consulted before implementation; for mother
companies – State-owned economy Group, mother companies of special-rank
corporations, they shall send to the Ministry of Labor, War Invalids and Social
Affairs for monitoring and supervision.
Article 8. Principles for establishment of labor productivity norms
1. The labor productivity norms are
implemented for each step of work, each stage and entire process of producing
products and providing services on the basis of organizing scientific labor and
reasonable production.
2. The labor productivity norms are
formulated on the basis of the job or title ranks and in compatibility with the
grades and trained qualifications of laborers, technological process, and technical
standards of machines, equipment and ensuring the labor standards.
3. The labor productivity norms must
be the advanced average norm, which ensure that the majority of laborers can
attain it without having to excessively prolong the regular working time of
enterprises as prescribed by law.
4. The new labor productivity norm
must be applied experimentally before being officially promulgated. Enterprises
must notify laborers at least 15 days before applying experimentally. Duration
of experimentally applying shall depend on nature of work, but not more than 3
months and must assess the implementation of the norm.
In case where during the standard
working time, the actual implemented level of calculation under productivity is
lower 5% or higher 10% than the assigned norm, or the actual implemented level
of calculation under the time is higher 5% or lower 10% than the assigned norm,
enterprises must adjust the labor productivity norm.
5. The labor productivity norm must
be periodically reviewed, assessed to amend, supplement, and adjust for
conformity. When formulating or amending and supplementing, adjusting the labor
productivity norms, enterprises must consult organizations representing for
labor collectives at enterprises and publicly at the working places of laborers
before implementation, and send to the labor state management agencies at
district level where enterprises located their production facilities.
Chapter 4.
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Article 9. Effect
1. This Decree takes effect on July
01, 2013. Provisions in this Decree shall be applied from May 01, 2013.
2. The Government’s Decree No.
114/2002/ND-CP, of December 31, 2002, detailing and guiding the implementation
of a number of the Labor Code’s articles on wages, the Government’s Decree No.
205/2004/ND-CP, of December 14, 2004, providing the system of wage scales,
payroll and allowance regimes in state-owned companies cease to be effective on
the effective date of this Decree.
Article 10. Responsibility for
implementation organization
1. Responsibility for implementation
organization of regulations on functions, tasks and organizational structure of
the National Wage Council:
a. Heads of agencies, organizations
specified in clause 1 Article 5 of this Decree shall appoint representatives to
participate in the National Wage Council and send the list to the Ministry of
Labor, Invalids and Social Affairs for summarization;
b. Chairperson of the Vietnam Chamber
of Commerce and Industry shall select and suggest heads of two Central Trade
Associations that use many laborers to appoint representatives for
participation in the National Wage Council;
c. The Minister of Labor, Invalids
and Social Affairs shall sum up and propose the Prime Minister for appointment
of Chairperson, Deputy Chairpersons of the National Wage Council; and decide
the appointment of members of the National Wage Council.
2. Responsibilities for
implementation organization of the formulation of wage scales, payroll and
labor productivity norms.
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b. The labor state management
agencies at district level where enterprises located their production and
business facilities shall receive the wage scales,
payroll, labor productivity norms of enterprises as
prescribed in clause 2 Article 93 of the Labor Code; clause 6 Article 7 and
clause 5 Article 8 of this Decree for reviewing and inspection. If detecting
content not consistent with regulation, the labor state management agencies
must have written request to enterprises for amendment, adjustment,
supplementation in accordance with labor law;
c. People’s Committees of
central-affiliated cities and provinces shall direct the provincial Departments
of Labor, Invalids and Social Affairs in coordinating with Confederation of
Labour and relevant agencies to organize propagation, guidance, inspection,
examination for the formulation of wage scale, payroll, labor productivity
norms of enterprises in their areas as prescribed in this Decree.
d. Agencies, organizations that are
assigned, decentralized in implementation of rights and obligations of owners
to State-owned one-member limited liability companies shall receive, examine,
supervise the formulation of wage scales, payroll of one-member limited liability
companies owned by them.
e. The Ministry of Labor, Invalids
and Social Affairs shall guide State-owned one-member limited liability
companies, organizations, units of State, joint-stock companies and limited
liability companies with two or more members owned by State that are arranging
wages under the wage scale, payroll promulgated together with the Government’s
Decree No. 205/2004/ND-CP, of December 14, 2004, to implement this Decree,
ensure the rational relationship on wage among labor types in companies and
trades; transferring and ranking wage for laborers from
the wage scales, payroll promulgated together with the Decree No.
205/2004/ND-CP, of December 14, 2004, by the Government to the wage scales,
payroll promulgated by companies.
3. Ministers, heads of
ministerial-level agencies, heads of government-attached agencies, presidents
of provincial/municipal Peoples Committees and relevant agencies,
organizations, enterprises and individuals shall implement this Decree.
ON BEHALF OF THE
GOVERNMENT
PRIME MINISTER
Nguyen Tan Dung