THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
94/2006/ND-CP
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Hanoi,
September 07, 2006
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DECREE
ADJUSTING THE
COMMON MINIMUM WAGE LEVEL
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on
Organization of the Government;
Pursuant to the June 23, 1994 Labor Code and the April 2, 2002 Law Amending and
Supplementing a Number of Articles of the Labor Code;
Pursuant to the Government's Decree No. 203/2004/ND-CP of December 14, 2004,
providing for the minimum wage level;
At the proposal of the Minister of Labor, War Invalids and Social Affairs, the
Minister of Home Affairs and the Minister of Finance,
DECREES:
Article 1.- From October 1, 2006, the
common minimum wage level shall be raised to VND 450,000 per month from VND
350,000 per month as provided for in Article 1 of the Government's Decree No.
118/2005/ND-CP of September 15, 2005.
Article 2.- The common
minimum wage level specified in Article 1 of this Decree shall be used as the
basis for adjustment of pensions, social insurance allowances and monthly
allowances for commune officials who had ceased working, and for the
calculation of severance allowances, deductions and other entitlements
calculated based on the common minimum wage as follows:
1. To increase by 28.6% pensions, social
insurance allowances and monthly allowances already adjusted under the
Government's Decree No. 93/2006/ND-CP of September 7, 2006, adjusting pensions,
social insurance allowances and monthly allowances for commune officials who
had ceased working.
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3. To calculate severance allowances paid on the
basis of the number of working months from October 1, 2006 onward to redundant
laborers under the Government's Decree No. 41/2002/ND-CP of April 11, 2002, on
policies towards laborers who become redundant due to the reorganization of
state enterprises, Decree No. 155/2004/ND-CP of August 10, 2004, amending and
supplementing Decree No. 41/2002/ND-CP, and Resolution No. 06/2006/NQ-CP of May
4, 2006, on the Government's April 2006 regular meeting.
4. The common minimum wage-based deductions and
benefits shall be re-calculated correspondingly.
Article 3.- Funds for
adjustment of the minimum wage level for various subjects shall be apportioned
by the state budget from the following sources:
1. Administrative agencies and non-business
units under ministries, central agencies, provinces and centrally run cities
shall each save 10% of their regular expenditures (excluding wage and payments
of wage nature) for wage adjustment.
2. Non-business units having revenues shall use
at least 40% of revenues they are permitted to retain according to regulations
for wage adjustment. Particularly, medical non-business units shall use at
least 35% of revenues they are permitted to retain according to regulations
(after subtracting expenses for medicines, blood, fluids and chemicals) for
wage adjustment.
3. Administrative agencies having revenues shall
use at least 40% of revenues they are permitted to retain according to
regulations for wage adjustment.
4. 50% of the increased revenue amounts of local
budgets.
5. The central budget shall:
a/ Allocate additional funds for the adjustment
of the minimum wage level to ministries, central agencies, provinces and
centrally run cities which have strictly implemented the provisions of Clauses
1, 2, 3 and 4 of this Article but still lack funds for wage adjustment;
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c/ Allocate funds for the adjustment of pensions
and social insurance allowances for those who had enjoyed pensions and social
insurance allowances before October 1, 1995 (while the social insurance fund
shall cover the adjustment of pensions and social insurance allowances for
those who enjoy pensions and social insurance allowances from October 1, 2005
onward, including commune, ward and township officials who are enjoying monthly
pensions and social insurance allowances under the Government's Decree No.
09/1998/ND-CP of January 23, 1998, and Decree No. 121/2003/ND-CP of October 21,
2003).
Article 4.- Funds for the
adjustment of the common minimum wage level for laborers working in companies
and enterprises (except foreign-invested enterprises in Vietnam) shall be
allocated by such companies and enterprises and accounted as their production
or business costs.
For state companies which apply the increase
coefficient of not more than twice the common minimum wage level specified in
Article 4 of the Government's Decree No. 206/2004/ND-CP of December 14, 2004,
and organizations and units entitled to apply the increase coefficient against
the common minimum wage level like state companies, the increase coefficient of
not more than 1.34 times the common minimum wage level specified in this Decree
shall apply.
Article 5.-
1. The Ministry of Labor, War Invalids and
Social Affairs shall guide the application of the common minimum wage level
specified in this Decree to companies and enterprises operating under the 2005
Enterprise Law (except for foreign-invested enterprises in Vietnam),
cooperatives, cooperative groups, farms, households, individuals and other
organizations that employ laborers; guide the adjustment of pensions and social
insurance allowances for those who enjoy pensions and social insurance
allowances as provided for in Clause 1 (except commune officials who
discontinued working) and Clause 2, Article 2 of this Decree; guide the
calculation of severance allowances according to the provisions of Clause 3,
Article 2 of this Decree for redundant laborers under the Government's Decree
No. 41/2002/ND-CP of April 11, 2002, Decree No. 155/2004/ND-CP of August 10,
2004, and Resolution No. 06/2006/NQ-CP of May 4, 2006, on the Government's
April 2006 regular meeting.
2. The Ministry of Home Affairs shall assume the
prime responsibility for, and coordinate with the Ministry of Finance and
concerned ministries and branches in, guiding the application of the minimum
wage level specified in Article 1 of this Decree to state agencies,
non-business units, political organizations and socio-political organizations;
and guiding the adjustment of monthly allowances for commune officials who
ceased working according to the provisions of Clause 1, Article 2 of this
Decree.
3. The Ministry of Defense and the Ministry of
Public Security shall, after consulting and reaching agreement with the
Ministry of Home Affairs and the Ministry of Finance, guide the application of
the common minimum wage level to armed forces.
4. The Ministry of Finance shall assume the
prime responsibility for, and coordinate with concerned ministries and branches
in:
a/ Guiding the calculation and balancing of
funds for the adjustment of the minimum wage level as provided for in Article 3
of this Decree;
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Article 6.-
1. This Decree shall take effect 15 days after
its publication in "CONG BAO." To annul the Government's Decree No.
118/2005/ND-CP of September 15, 2005, adjusting the common minimum wage level.
2. The provisions of this Decree shall be
implemented as from October 1, 2006.
Article 7.- Ministers,
heads of ministerial-level agencies, heads of government-attached agencies and
presidents of provincial/municipal People's Committees shall have to implement
this Decree.