Decree No. 103/2012/ND-CP on the minimum wage levels for workers employed by enterprises, cooperatives, joint ventures, farms, households, individuals, and organizations that hire labor.

DECREE

Article specifies the minimum wage level for workers employed at enterprises, cooperatives,

associations, farms, households, individuals, and agencies, organizations that hire labor.

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Labor Code dated June 23, 1994; Law Amending and Supplementing Certain Provisions of the Labor Code dated April 2, 2002; Law Amending and Supplementing Certain Provisions of the Labor Code dated June 29, 2006;

Pursuant to the Enterprise Law dated November 29, 2005;

Decree No. 07/2021/NĐ-CP

The Government promulgates this Decree to specify the minimum wage levels applicable to workers employed at enterprises, cooperatives, associations, farms, households, individuals, and agencies, organizations that hire labor.

Article 1. Scope of Regulation

This Decree sets forth the minimum wage levels applicable to workers employed at enterprises, cooperatives, associations, farms, households, individuals, and agencies, organizations that hire labor.

Article 2. Applicability

1. Enterprises established, managed, and operated under the Enterprise Law (including foreign-invested enterprises in Vietnam).

2. Cooperatives, cooperative unions, production cooperatives, farms, households, individuals and other Vietnamese organizations that hire labor.

3. Foreign agencies, international organizations, and individual foreigners in Vietnam that hire labor (except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise).

The enterprises, agencies, organizations, and individuals specified in Clauses 1, 2, and 3 of this Article shall hereinafter be collectively referred to as enterprises.

Article 3. Minimum Wage Levels

1. The minimum wage levels applicable to enterprises are as follows:

a) A rate of VND 2,350,000 per month applicable to enterprises operating within Region I.

b) A rate of VND 2,100,000 per month applicable to enterprises operating within Region II.

c) A rate of VND 1,800,000 per month applicable to enterprises operating within Region III.

d) A rate of VND 1,650,000 per month applicable to enterprises operating within Region IV.

a) The monthly wage paid to untrained workers performing the simplest tasks under normal working conditions, ensuring sufficient working hours in a month and completing agreed-upon work quotas or standards shall not be lower than the minimum wage level for the region.

b) The lowest wage paid to trained workers (including those trained by the enterprise itself) must be at least 7% higher than the minimum wage level for the region.

2. Based on the minimum wage levels for regions prescribed in Clause 1, Article 3 of this Decree, enterprises shall determine and adjust their salary scales and wage levels in employment contracts to comply with labor laws.

a) The monthly wage paid to untrained workers performing the simplest tasks under normal working conditions, ensuring the standard number of working days in a month and completing the agreed work quota or labor standards must not be lower than the minimum wage.

b) The lowest wage paid to trained workers (including those trained by the enterprise itself) must be at least 7% higher than the regional minimum wage.

2. The minimum wage levels stipulated in Clause 1, Article 3 of this Decree apply to enterprises that establish and implement salary scales and pay tables as prescribed in Article 57 of the Labor Code as follows:

a) For enterprises that have established and implemented salary scales and pay tables, adjustments should be made to the wage levels in the salary scale and pay table, wage supplements, and wages stipulated in employment contracts based on the regional minimum wage.

b) For enterprises that have not yet established salary scales and pay tables, the regional minimum wage should be used to determine wage levels when establishing salary scales and pay tables, wage supplements, and wages stipulated in employment contracts, and to implement other regulations as prescribed by labor laws.

3. Enterprises are encouraged to pay workers wages higher than the minimum wage levels stipulated in Clause 1, Article 3 and Clause 1 of this Article.

Article 5. Effective Date

1. This Decree takes effect from January 20, 2013. The minimum wage levels stipulated in Clause 1, Article 3 and the provisions set forth in this Decree shall be applied from January 1, 2013.

2. This Decree replaces Decree No. 70/2011/NĐ-CP dated August 22, 2011 of the Government specifying the minimum wage levels for workers employed at companies, enterprises, cooperatives, associations, farms, households, individuals, and agencies, organizations that hire labor.

3. State-owned limited liability companies with state ownership; state companies that have not been converted into limited liability companies or joint stock companies, organizations currently applying state company salary systems according to Decree No. 206/2004/NĐ-CP dated December 14, 2004; Decree No. 207/2004/NĐ-CP dated December 14, 2004; Decree No. 86/2007/NĐ-CP dated May 28, 2007; Decree No. 141/2007/NĐ-CP dated September 5, 2007 of the Government may choose appropriate minimum wage levels to apply in their enterprises provided they meet government requirements and the increase in management staff salaries does not exceed the increase in worker salaries until new regulations are issued.

Article 6. Responsibility for Implementation

1. The Ministry of Labor, Invalids, and Social Affairs is responsible for guiding the implementation of this Decree.

2. The Ministry of Labor, Invalids, and Social Affairs shall take the lead and coordinate with the Vietnam General Confederation of Labor, the Vietnam Chamber of Commerce and Industry, relevant ministries, agencies, and provincial people's committees to disseminate and popularize this Decree among workers and employers, supervise its implementation, and submit proposals to the Government for adjusting the minimum wage levels as prescribed.

3. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial people's committees, and relevant agencies and enterprises are responsible for implementing this Decree./.