Circular No. 06/2010/TT-BLDTBXH guiding the implementation of the general minimum wage for state-owned companies and single-member limited liability companies wholly owned by the State.

CIRCULAR

Guidelines for Implementing the General Minimum Wage for State-Owned Enterprises and Joint Stock Companies with 100% State Capital

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Pursuant to Decree No. 28/2010/NĐ-CP dated March 25, 2010 of the Government stipulating the general minimum wage;

Pursuant to Decree No. 186/2007/NĐ-CP dated December 25, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor - War Invalids and Social Affairs;

The Ministry of Labor, Invalids and Social Affairs provides guidelines for implementing the general minimum wage for state-owned enterprises and joint stock companies with 100% state capital as follows:

Article 1. 1. Principles, criteria, and allocation standards for state budget investment capital development phase 2016-2020 serve as the basis for planning medium-term and annual investment plans from the state budget for the period 2016-2020 at the national level, at all levels, and in all sectors and units using state budget funds. They also serve as the basis for managing, supervising, inspecting, and auditing the implementation of medium-term and annual investment plans.

Workers under labor contracts (as specified in Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on labor contracts); members of the Board of Directors, members of the Supervisory Board, members of the Board of Members (or Chairman of the company), Supervisors, General Directors, Directors, Deputy General Directors, Deputy Directors, Chief Accountants (excluding General Directors, Directors, Deputy General Directors, Deputy Directors, and Chief Accountants working under contracts) working in:

1. Companies established, managed, and operated under the Law on State-Owned Enterprises 2003, including:

a) State-owned corporations;

b) Independent state-owned companies;

c) Parent companies that are state-owned enterprises within economic groups decided to be established by the Prime Minister: parent companies that are state-owned enterprises within corporations or companies operating under the parent-subsidiary model;

d) Corporations, independent subsidiaries with 100% state capital belonging to economic groups during the period before conversion and re-registration as prescribed in Decree No. 139/2007/NĐ-CP dated September 5, 2007 of the Government detailing and guiding the implementation of certain provisions of the Enterprise Law 2005;

đ) Independent subsidiaries with 100% state capital belonging to corporations decided to be invested in and established by the State.

2. Joint stock companies with 100% state capital established, managed, and operated under the Enterprise Law 2005.

State-owned enterprises and joint stock companies with 100% state capital as stipulated in Clause 1 and Clause 2 of this Article shall hereinafter be referred to collectively as companies.

Article 2. Implementation of the General Minimum Wage

Companies apply the general minimum wage of 730,000 VND/month from May 1, 2010, to calculate various wage levels in the wage scale, salary table, salary allowances, and implement other systems as prescribed by law as follows:

1. Based on the general minimum wage and the wage coefficients in the wage scales, salary tables, and salary allowances stipulated in Decree No. 205/2004/NĐ-CP and Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government, companies recalculate the salaries and salary allowances as the basis for contributions and benefits under social insurance, unemployment insurance, health insurance; wages during suspension of work; holidays; annual leave, and other systems as prescribed by labor laws.

The calculation of salaries in the wage scales, salary tables, and salary allowances is carried out as follows: multiply the wage coefficient according to job rank; professional and vocational wage coefficient; position wage coefficient assigned, salary allowance, and differential retention coefficient (if any) by the general minimum wage of 730,000 VND/month.

2. Companies stipulated in Clause 1, Article 1 of this Circular apply an adjustment factor not exceeding 1.1 or 1.7 times the general minimum wage to calculate the unit price of wages as stipulated in Clause 4, Article 7 of Decree No. 28/2010/NĐ-CP as follows:

a) For companies meeting all conditions prescribed in Article 4 of Decree No. 206/2004/NĐ-CP dated December 14, 2004 of the Government and point b, Clause 1, Section III of Circular No. 07/2005/TT-BLĐTBXH dated January 5, 2005 of the Ministry of Labor, Invalids and Social Affairs, may apply an adjustment factor (K) not exceeding 1.1 times the general minimum wage to calculate the unit price of wages._đcb) For companies meeting all conditions prescribed in Article 4 of Decree No. 206/2004/NĐ-CP and point b, Clause 1, Section III of Circular No. 07/2005/TT-BLĐTBXH mentioned above and having planned profits at least 5% higher than the actual profit of the previous year, may apply an adjustment factor (K) not exceeding 1.7 times the general minimum wage to calculate the unit price of wages.

3. For surplus workers who terminate their labor contracts and receive unemployment assistance as stipulated in Clause 4, Article 3 and Article 4 of Decree No. 110/2007/NĐ-CP dated June 26, 2007 of the Government regarding policies for surplus workers due to restructuring of state-owned enterprises, unemployment assistance for time worked in the public sector from May 1, 2010 onwards and travel allowance for finding new jobs will be calculated based on the general minimum wage of 730,000 VND/month._đcWhen implementing the aforementioned allowances, additional columns corresponding to actual time worked in the public sector and calculating unemployment assistance should be added to Table 9 and Table 10 issued along with Circular No. 18/2007/TT-BLĐTBXH dated September 10, 2007 of the Ministry of Labor, Invalids and Social Affairs.

4. For surplus workers eligible for early retirement, additional assistance as stipulated in point b, Clause 2, Article 3 of Decree No. 110/2007/NĐ-CP dated June 26, 2007 of the Government, from May 1, 2010 onwards will be calculated based on the general minimum wage of 730,000 VND/month.

Repeal Circular No. 10/2009/TT-BLĐTBXH dated April 24, 2009 of the Ministry of Labor, Invalids and Social Affairs providing guidelines for implementing the general minimum wage for state-owned enterprises and joint stock companies with 100% state capital and point a, Clause 3, Article 3 of Circular No. 35/2009/TT-BLĐTBXH dated November 13, 2009 of the Ministry of Labor, Invalids and Social Affairs providing guidelines for implementing regional minimum wages for state-owned enterprises and joint stock companies with 100% state capital.

Amend the adjustment factor (K) exceeding the general minimum wage (K) at point b, Clause 3, Article 3 of Circular No. 35/2009/TT-BLĐTBXH mentioned above as follows:

Article 3. Implementation Provisions

1. This Circular takes effect 45 days from the date of issuance.

minregion

< K_đc≤ 1.1 or 1.7

2. The level of salary in the wage scale, pay grade, allowance rate, and welfare benefits for the subjects specified in this Circular shall be calculated based on the general minimum wage of 730,000 VND/month from May 1, 2010.

3. When implementing the general minimum wage stipulated in this Circular, the amount allocated for midday meals per working day in a month for each employee in companies, organizations, and units specified in Section I of Circular No. 22/2008/TT-BLDTBXH dated October 15, 2008, issued by the Ministry of Labor, Invalids, and Social Affairs to guide the implementation of midday meal allowances in state-owned enterprises shall not exceed 550,000 VND/month.

4. The Vietnam Deposit Insurance Corporation, the Vietnam Development Bank, the Project Management Board for Investment and Construction (previously established under Decrees No. 52/1999/NĐ-CP dated July 8, 1999, No. 16/2005/NĐ-CP dated February 7, 2005, and No. 112/2006/NĐ-CP dated September 29, 2006 of the Government, and currently under Decree No. 12/2009/NĐ-CP dated February 12, 2009 of the Government on project management for investment and construction projects), and other state organizations applying the wage system of state-owned enterprises shall recalculate the wage levels in the wage scale, pay grade, allowance rates, and welfare benefits for employees according to this Circular based on the general minimum wage of 730,000 VND/month from May 1, 2010.

5. For the Project Management Boards for Investment and Construction (excluding those belonging to joint-stock limited companies wholly owned by the State with 100% capital contribution), the adjustment factor applied in addition to the general minimum wage shall vary depending on the scale, importance of each project, and cost-saving potential, serving as the basis for establishing the wage fund without increasing the management costs of the Project Management Board, following the principle that:

a) For National Key Project Management Boards or construction projects belonging to Group A as defined in Appendix 1 issued together with Decree No. 12/2009/NĐ-CP mentioned above, the additional adjustment factor shall not exceed 1.7 times the general minimum wage.

b) For Project Management Boards for construction projects belonging to Groups B and C as defined in Appendix 1 issued together with Decree No. 12/2009/NĐ-CP mentioned above, the additional adjustment factor shall not exceed 1.1 times the general minimum wage.

6. Joint-stock companies and limited liability companies with two or more members converted from state-owned enterprises applying the wage scales, pay grades, and allowance systems prescribed for state-owned enterprises in Decrees No. 205/2004/NĐ-CP and No. 204/2004/NĐ-CP dated December 14, 2004 of the Government shall apply the general minimum wage stipulated in Article 1 of Decree No. 28/2010/NĐ-CP dated March 25, 2010 of the Government to recalculate the wage levels, allowance rates in the wage scales, pay grades, and allowances as the basis for calculating contributions and benefits under social insurance, unemployment insurance, health insurance; wages during suspension of work, holidays, annual leave, and other benefits for employees according to labor laws.

7. Ministries, ministerial-level agencies, government-affiliated agencies, provincial People's Committees, municipal People's Committees directly under the central government, Chairmen of the Board of Directors, Chairmen of the Board of Members, or Chairmen of companies of the parent company in state economic groups and state-owned corporations have the responsibility to direct, urge, and inspect companies to comply strictly with the provisions of this Circular.

During the implementation process, if there are any difficulties, please report them to the Ministry of Labor, Invalids, and Social Affairs for timely guidance and supplementation./.