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THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 110/2008/ND-CP
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Hanoi, October 10, 2008
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DECREE
PRESCRIBING
REGION-BASED MINIMUM WAGE LEVELS FOR LABORERS WORKING FOR VIETNAMESE COMPANIES,
ENTERPRISES, COOPERATIVES. COOPERATIVE GROUPS, FARMS. HOUSEHOLDS AND
INDIVIDUALS AND OTHER VIETNAMESE ORGANIZATIONS EMPLOYING LABORERS
THE GOVERNMENT
Pursuant to the December 25.
2001 Law on Organization of the Government:
Pursuant to the June 23, 1994 Labor Code: the April 2, 2002 Law Amending and
Supplementing a Number of Articles of the Labor Code: and the June 29. 2006 Law
Amending and Supplementing a Number of Articles of the Labor Code;
Pursuant to the XIth National Assembly's Resolution No. 56/2006/NQ-QH11 of June
29. 2006. on the 2006-2010 five-year socio-economic development plan;
At the proposal of the Minister of Labor, War Invalids and Social Affairs.
DECREES:
Article 1.-To prescribe
region-based minimum wage levels to be applied to:
1. Companies which are established,
organize management and operate under the State Enterprise Law.
2. One-member limited liability
companies with 100% state-owned charter capital which organize management and
operate under the Enterprise Law.
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4. Vietnamese cooperatives,
cooperative unions, cooperative groups, farms, households and individuals and
other Vietnamese organizations employing laborers.
Companies, enterprises,
organizations and individuals specified in Clauses 1, 2, 3 and 4 of this
Article are collectively referred to as enterprises.
Article 2.- Region-based
minimum wage levels paid to laborers doing simplest jobs under normal working conditions
in enterprises specified in Article 1 of this Decree shall be applied from
January 1,2009. according to regions as follows:
1. The level of VND
800,000/month applies to enterprises operating in localities of region I.
2. The level of VND 740,000/month
applies to enterprises operating in localities of region II.
3. The level of VND
690,000/month applies to enterprises operating in localities of region III.
4. The level of VND
650.000/month applies to enterprises operating in localities of region IV.
Localities of regions I, II, III
and IV are specified in the Appendix to this Decree.
Article 3.-
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Enterprises specified in Clause
1, Article 1 of this Decree which satisfy the conditions prescribed in Article
4 of the Government's Decree No. 206/ 2004/ND-CP of December 14, 2004,
providing for management of laborers, wages and incomes in state companies, may
apply a wage increase coefficient which must not exceed 1.34 times the common
minimum wage level; when they satisfy the conditions prescribed in Article 4 of
the Government's Decree No. 206/2004/ND-CP and have a planned profit at least
5% higher than the profit earned in the preceding year, they may apply a wage
increase coefficient which must not exceed twice the common minimum wage level
specified in the Government's Decree No. 166/2007/ND-CP of November 16. 2007,
for determining the wage unit price.
2. For enterprises specified in
Clauses 3 and 4, Article 1 of this Decree:
a/To apply the region-based
minimum wage levels specified in Article 2 of this Decree for determining wage
levels in wage scales and tables and all kinds of wage allowances, and wage
levels specified in labor contracts, and implement other policies adopted and
issued by enterprises according to their competence prescribed by the labor
law.
b/The lowest wage level paid to
laborers who have received vocational training (including laborers trained by
enterprises themselves) must be at least 7% higher than the region-based
minimum wage levels specified in Article 2 of this Decree.
c/ Enterprises are encouraged to
apply a minimum wage level higher than the region-based minimum wage levels
specified in Article 2 of this Decree.
d/ On the basis of the
region-based minimum wage levels specified in Article 2 of this Decree,
enterprises shall adjust salaries in labor contracts accordingly.
Article 4.-
1. The region-based minimum wage
levels specified in Article 2 of this Decree may be adjusted depending on the
economic growth rate, cost-of-living index and labor supply-demand in each
period.
2. The Ministry of Labor, War
Invalids and Social Affairs shall, after consulting the Vietnam General Labor Confederation, representatives of employers and concerned ministries
and branches, propose the Government to adjust the region-based minimum wage
levels specified in Article 2 of this Decree.
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1.This Decree takes effect on
January 1, 2009. To annul the Government's Decree No. 167/2007/ ND-CP of
November 16, 2007, prescribing region-based minimum wage levels for laborers
working for Vietnamese companies, enterprises, cooperatives, cooperative
groups, farms, households and individuals and other Vietnamese organizations
employing laborers.
2. The Ministry of Labor, War
Invalids and Social Affairs shall guide the implementation of this Decree.
Article 6.- Ministers,
heads of ministerial-level agencies, heads of government-attached agencies and
presidents of provincial/municipal People's Committees shall implement this
Decree.
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Nguyen Tan Dung
APPENDIX
LOCALITIES
FOR APPLICATION OF REGION-BASED MINIMUM WAGE LEVELS
(Attached to the Government's Decree No. 110/ 2008/ND-CP of October 10.
2008)
1. Region I, covering the
following localities:
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- Urban districts of Ho Chi Minh City.
2. Region II, covering the
following localities:
- Gia Lam, Dong Ann, Soc Son.
Thanh Tri, Tu Liem, Thuong Tin, Hoai Duc, Dan Phuong, Thach That and Quoc Oai
rural districts and Son Tay city of Hanoi city;
- Rural districts of Ho Chi Minh City;
- Urban districts and Thuy
Nguyen; and An Duong rural districts of Hai Phong city;
- Urban and rural districts of Da Nang city;
- Ninh Kieu and Binh Thuy urban
districts of Can Tho city;
- Ha Long city of Quang Ninh province;
- Bien Hoa city, Long Khanh town
and Nhon Trach, Long Thanh, Vinh Cuu and Trang Bom rural districts of Dong Nai
province;
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- Vung Tau city and Tan Thanh
rural district of Ba Ria- Vung Tau province.
3. Region III, covering the
following localities:
- Provincial cities (except
those of region IT);
- Remaining rural districts of Hanoi city.
- Bac Ninh city, Tu Son town and
Que Vo, Tien Du and Yen Phong rural districts of Bac Ninh province:
- Bac Giang city and Viet Yen
and Yen Dung rural districts of Bac Giang province:
- Hung Yen town and My Hao. Van
Lam. Van Giang and Yen My rural districts of Hung Yen province;
- Hai Duong city and Cam Giang. Nam Sach. Chi Linh, Kim Thanh and Kinh Mon rural districts of Hai Duong province;
- Vinh Yen city and Phuc Yen
town of Vinh Phuc province;
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- Mong Cai city and Uong Bi and
Cam-Pha towns of Quang Ninh province;
- Da Lat city and Bao Loc town
of Lam Dong province;
- Nha Trang city and Cam Ranh
town of Khanh Hoa province;
- Trang Bang rural district of
Tay Ninh province:
- Remaining rural districts of
Binh Duong province;
- Remaining rural districts of
Dong Nai province;
- Tan An town and Duc Hoa, Ben
Luc and Can Duoc rural districts of Long An province;
- Remaining urban and rural
districts of Can Tho city;
- Ba Ria town and Chau Duc, Long
Dien, Dat Do and Xuyen Moc rural districts of Ba Ria-Vung Tau province.
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