Circular No. 10/2012/TT-BLDTBXH guiding the general minimum wage for a state-owned single-member limited liability company

CIRCULAR

Guidelines for implementing the general minimum wage level for a limited liability company with one member owned by the state

a single-member limited liability company owned by the state

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Pursuant to Decree No. 31/2012/NĐ-CP dated April 12, 2012 of the Government stipulating the general minimum wage level;

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;

Considering the proposal of the Director of the Department of Labor and Wages;

The Minister of Labor, Invalids and Social Affairs issues this Circular guiding the implementation of the general minimum wage level for a limited liability company with one member owned by the state,

Article 1. Scope and Applicability

Workers under labor contracts; members of the Board of Members (or Chairman of the company), Supervisors, General Directors (Directors), Deputy General Directors (Deputy Directors), Chief Accountants working in a limited liability company with one member owned by the state, including:

1. Independent limited liability companies with sole member under Ministries, People's Committees of provinces and centrally governed cities.

2. A limited liability company with one member is the parent company of a state economic group, the parent company in the parent company - subsidiary model established by Prime Minister the Government, Ministers of Ministries, Chairmen of Provincial People's Committees directly under the Central Government deciding to convert, establish, approve the charter of organizational operation. The Central Committee decides on the conversion, establishment, and approval of the charter governing organizational operations.

3. A limited liability company with one member owned by the parent company as stipulated in Clause 2 of Article 1 herein.

A limited liability company with one member owned by the parent company as stipulated in Clauses 1, 2, and 3 above shall hereinafter be referred to as the company.

Article 2. Application of the general minimum wage level to calculate wage levels

The company applies the general minimum wage level of VND 1,050,000/month to calculate wage levels and wage allowances from May 1, 2012 as follows:

1. Based on the general minimum wage level and the salary grade coefficient in the salary scales and wage allowances prescribed in Decree No. 205/2004/NĐ-CP, Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government, the company recalculates the wage and wage allowance as the basis for contribution and enjoyment of social insurance, unemployment insurance, health insurance; wages during stoppage of work; wages on public holidays, annual leave and other benefits according to the provisions of labor laws.

2. The calculation of wages in the salary scales and wage allowances is carried out as follows: multiply the job title and position salary grade coefficient; the professional and vocational salary grade coefficient; the position salary grade coefficient assigned, wage allowance, differential coefficient (if any) by the general minimum wage level of VND 1,050,000/month.

Article 3. Application of the general minimum wage level to calculate allowances

The company applies the general minimum wage level of VND 1,050,000/month to calculate allowances for surplus workers according to Decree No. 91/2010/NĐ-CP dated August 20, 2010 of the Government stipulating policies for workers who are surplus when restructuring a limited liability company with one member owned by the state as follows:

1. Calculate unemployment allowance, additional support for time worked in the state sector and job-seeking allowance from May 1, 2012 onwards for surplus workers who terminate their labor contracts, receive unemployment allowance, and additional support as provided for in Clause 4, Article 3 and Article 4 of Decree No. 91/2010/NĐ-CP dated August 20, 2010 of the Government.

When implementing the aforementioned allowances and additional support, the company supplements corresponding columns to calculate actual time worked in the state sector and include unemployment allowance in Table 9, 9a and Table 10 issued together with Circular No. 38/2010/TT-BLDTBXH dated December 24, 2010 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of certain articles of Decree No. 91/2010/NĐ-CP dated August 20, 2010 of the Government stipulating policies for surplus workers when restructuring a limited liability company with one member owned by the state.

2. Calculate additional allowance from May 1, 2012 onwards for surplus workers who are entitled to early retirement according to point b, Clause 2, Article 3 of Decree No. 91/2010/NĐ-CP dated August 20, 2010 of the Government.

Article 4. Effective date

1. This Circular takes effect from June 10, 2012 and replaces Circular No. 12/2011/TT-BLDTBXH dated April 26, 2011 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of the general minimum wage level for a limited liability company with one member owned by the state.

The regulations stipulated in this Circular shall be implemented from May 1, 2012.

2. The general minimum wage level stipulated in Article 1 of Decree No. 31/2012/NĐ-CP dated April 12, 2012 of the Government, from May 1, 2012 shall be used as the basis for determining unit price of wages and wage fund for companies, organizations, units as prescribed in Clause 3, Article 5 of Circular No. 23/2011/TT-BLDTBXH dated September 16, 2011 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of regional minimum wage level for workers working at companies, enterprises, cooperatives, production groups, farms, households, individuals and agencies, organizations hiring workers.

3. Companies stipulated in Article 1 of this Circular and state organizations currently applying the regime like state-owned companies, from May 1, 2012 shall implement meal allowance for workers not exceeding VND 680,000/person/month. Implementation of midday meal regime according to the guidance in Circular No. 22/2008/TT-BLDTBXH dated October 15, 2008 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of midday meal regime in state-owned companies.

4. For state organizations, units of the State, joint-stock companies, and limited liability companies with two or more members that are converted from state-owned enterprises or from single-member limited liability companies owned by the State which are currently applying the wage scale, salary grid, and additional salary stipulated by the Government for state-owned enterprises under Decree No. 205/2004/NĐ-CP dated December 14, 2004, shall apply the general minimum wage prescribed in Article 1 of Decree No. 31/2012/NĐ-CP dated April 12, 2012, of the Government to recalculate the salary and additional salary in the wage scale, salary grid, and additional salary as the basis for calculating contributions and benefits for social insurance, unemployment insurance, health insurance; wages during suspension of work; wages on public holidays, annual leave, and other benefits according to the provisions of labor laws.

5. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government are responsible for directing, urging, and inspecting companies to implement in accordance with the provisions of this Circular.

During the implementation process, if there are any difficulties, they are requested to report to the Ministry of Labor - Invalids and Social Affairs for timely supplementary guidance./.