THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No:
197-CP
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Hanoi,
December 31, 1994
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DECREE
DETAILING
AND GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES ON WAGES OF THE LABOR
CODE
THE GOVERNMENT
Pursuant to the Law on
Organization of the Government on the 30th of September 1992;
Pursuant to the Labor Code on the 23rd of June 1994;
At the proposal of the Minister of Labor, War Invalids and Social Affairs,
DECREES:
Chapter I
OBJECTS AND SCOPE OF REGULATION
Article 1.- The objects
and scope of regulation by Articles 2 and 3 of the Labor Code in terms of wages
are laborers working in the following organizations:
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2. Businesses of other economic
sectors;
3. Public service units
operating according to the loss-profit accounting system;
4. Business and service
organizations belonging to administrative and public service agencies, the
armed forces, mass organizations, political and social organizations and other
economic sectors which are allowed to register for operation;
5. Business with foreign
investments, business in export processing zones, industrial parks;
6. Foreign agencies and
organizations, international organizations based on Vietnamese territory and
hiding laborers who are Vietnamese, except otherwise provided for in
international treaties which the Socialist Republic of Vietnam has signed or
acceded to.
Article 2.- The following
objects and scopes are not regulated by Article 4 of the Labor Code:
1. Public employees and
functionaries in administrative and public service agencies of the State;
2. The persons holding elected,
appointed or assigned posts in State agencies;
3. The persons belonging to mass
organizations and other political and social organizations under the statutes
of these organizations; members of cooperatives;
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Chapter II
MINIMUM WAGES, SYSTEM OF WAGE SCALES AND TABLES
Article 3.-
1. The minimum wage as defined in
Article 56 and Item 2 of Article 132 of the Labor Code is the wage paid to the
laborer doing the most simple job (without training) in formal labor conditions
and environment.
2. Ministry of Labor, War
Invalids and Social Affairs, after consulting the Vietnam General Confederation
of Labor and the representative of the employer, shall submit the minimum wage
for each period to the Government for decision and publication.
3. The Ministry of Labor, War
Invalids and Social Affairs, after consulting the Vietnam General Confederation
of Labor, the State Committee for Cooperation and Investment, and the
representative of the employer, shall submit to the Government for
announcement, or the Government shall empower the Ministry to announce, the
minimum wage of Vietnamese laborers working in foreign-invested businesses,
export processing zones, industrial parks, or foreign or international agencies
and organizations in Vietnam.
Article 4.- The
application of the wage scale and table under Article 57 of the Labor Cod is
defined as follows:
1. The Government shall announce
the wage scale and table, and the regime of allowances organizations, and
public service units operating according to the loss-profit accounting and
accountancy system in the State-owned economic sector.
2. The Ministry of Labor, War
Invalids and Social Affairs shall bas itself on the wage policy of the State to
guide the implementation of the wage regime in the businesses and the
production, business and service organizations belonging to other economic
sectors.
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THE REGIME OF WAG AND BONUS PAYMENT
Article 5.- The forms of
wage payment under Article 58 of the Labor Code are defined as follows:
1. The time wage is the form of
payment to the laborers based on the real working time;
- The monthly wage is the fixed
wage paid monthly on the basis of the labor contract;
- The weekly wage is the wag
paid for a working week based on the monthly wage multiplied by 12 months and
divided to 52 weeks;
- The daily wage is the wage
paid for a working day based on the monthly wage divided to 26 days;
- The hourly wage is the wage
paid for a working hour based on the daily wag divided to the number of
standard hours defined at Article 68 of the Labor Code.
2. Piecework payment is payment
to the laborers based on the quantity and quality of their products.
3. Package payment is payment to
the laborers based on the volume and quality of the work they have to complete.
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- He shall have to make no
compensation if the delay is less than 15 days.
- If the delay is from 15 days
upward, the compensation shall represent at least the pay in arrears multiplied
by the monthly interest rate for current bank deposit announced by the State
Bank at the time of wage payment.
Article 7.- The deduction
from the wage of the laborer under Item 1 of Article 60 of the Labor Code is
defined as follows:
Basing himself on the monthly
wage received by the laborer after payment of his social insurance and medical
insurance premiums and his personal income tax, the employer shall gradually
deduct the advance payment made under Article 67 and also deduct the
compensations for material damage stipulated at Article 89 of the Labor Code.
Article 8.- Payment for
overtime and night-time work under Article 61 of the Labor Code is defined as
follows:
1. If payment is made according
to the working time, the laborer shall be paid for his work outside the
regulatory hours.
2. If payment is mad on the
basis of piecework or package work, the laborer shall be paid for his overtime
work, when the employer has the need to produce a grater quantity and volume of
products than the quantity or volume to be achieved during the regulatory time.
3. The laborer working in night
shift shall be paid additional wage representing at least 30% of the daytime
pay if the night work is not regular, and at least 35% of the day-time pay if
the work is done in regular night-shift (three-shift working regime) or is done
regularly at nigh time.
Article 9.- The deduction
from the remaining profit (after making the regulatory remittances to the
State) as bonus to laborers having worked at the business for on year or more
under Article 64 of the Labor Code, is defined as follows:
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2. With regard to the businesses
with foreign investment, businesses in the export processing zones and the
industrial parks, the bonus shall be mutually aggressed upon, but shall not be
lower than one month's wage under the labor contract.
3. With regard to private
businesses, the bonus shall be mutually agreed upon, but must not fall below
10% of the profit.
Article 10.- The advance
payment to the laborer under Items 1 and 2 of Article 67 of Labor Code is
defined as follows:
1. The laborer shall receive
payment of his wage when he/she or their family meets with difficulties, the
advance payment represents at least one month's wage. The mode of advance
payment of wage shall be mutually agreed upon, but this advance pay must not
carry interest rate.
2. When the laborer has to
temporarily suspend his/her work to discharge his/her citizen duty for one week
or more, he/she shall receive advance payment corresponding to the wage of the
non-working days, and this advance payment shall be deducted from his/her wage
under Article 7 of this Decree.
Article 11.- The advance
payment of wage to the laborers under custody or temporary detention under Item
3 of Article 67 of the Labor Code is defined as follows:
1. During the period of his/her
temporary custody or detention, the laborer shall receive an advance payment of
50% of his/her wage in the immediately preceding month under the labor
contract.
2. After expiry of the term of
temporary custody or detention, even if the laborer is found guilty, he/she
shall not have to return the above advance payment. If the fault rests with the
employer, he must pay fully the wage to the laborer according to the labor
contract. If the fault rests with the juridical agency, it must be dealt with
according to law.
Article 12.-
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2. The payment to the laborers
for overtime work and night work corresponds with the payment defined at
Article 5 of this Decree.
3. In case of stoppage of work
as defined in Item 1 of Article 62 of the Labor Cod, the laborer shall receive
work stoppage pay if the stoppage lasts two hours and more.
Article 13.- The wage to
serve as basis for calculating the payment according to the regimes of
severance allowances, job losing allowances, indemnity for labor accidents and
occupational diseases, is the payment according to the labor contract. It
represents the average of the six months immediately preceding the occurrence
of the affair or accident, and comprises the grade and position wage, area
allowance, dearness allowance and position allowance (if any).
Article 14.- The payment
during the regulatory paid leave defined at Articles 41, 53, 62, 73, 74, 76, 78
and 92 of the Labor Code is the monthly wage of the immediately preceding
month, and corresponds to the form of payment according to the working time
defined at Item 1 of Article 5 of this Decree.
Chapter IV
OTHER PROVISIONS
Article 15.- The
apprentices and trainees as defined in Item 2 of Article 23 of the Labor Code
shall be paid wage if he/she directly manufactures products. The wage is to be
mutually agreed upon, but shall not be lower than 70% of the grade wage of the
laborer doing the same job.
Article 16.- Women
laborers defined at Article 111 of the Labor Code shall be paid the same wage
as male laborers for the same job. When a pay rise is to be effected, the woman
laborer shall be given priority consideration over a male laborer with the same
conditions and standards.
Article 17.- Minor
laborers defined at Article 121 of the Labor Code shall receive the same
payment as a major laborer doing the same job.
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Article 19.- Handicapped
laborers as stipulated in Article 125 of the Labor Code shall receive the same
pay as an ordinary laborer doing the same job.
Article 20.- The laborer
with a high professional standard stipulated at Article 129 of the Labor Code
shall enjoy payment according to the wage table for high-level specialists,
experts and artists according to their titles and professional norms. The
businesses are entitled to effect a mechanism of payment in order to attract
this highly professional labor.
Article 21.- The
laborers, who are Vietnamese citizens allowed to go and work abroad in the form
of contractors or workers on contract as stipulated at Item 2 of Article 134 of
the Labor Code, shall receive part of their pay in the currency of the host
country or another convertible currency during their working time abroad.
Article 22.- Basing
themselves on the guidance of the Ministry of Labor, War Invalids and Social
Affairs, the businesses with foreign investment and the businesses in the
export processing zones and the industrial parks are allowed:
1. To work out and apply the system
of wage scales and wage tables and the wage levels, wage allowances and the
payment regulation which can ensure the interests of all parties.
2. To set the wages of the
director (general director), deputy director (deputy general director) and the
other key functionaries in the business, and submit it to the Managerial Board
for decision.
Article 23.- The Ministry
of Labor, War Invalids and Social Affairs shall base itself on the stipulations
at Article 136 of the Labor Code with regard to those working in special jobs
in the domain of art, and submit to the Government for consideration and
decision.
Chapter V
IMPLEMENTATION PROVISIONS
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Article 25.- The Ministers,
Heads of ministerial-level agencies, Heads of agencies attached to the
Government, and the Presidents of the People's Committees in the provinces and
cities directly under the Central Government shall have to implement this
Decree.
ON
BEHALF OF THE GOVERNMENT
PRIME MINISTER
Vo Van Kiet