Decree No. 103/2014/ND-CP stipulates the minimum wage levels for workers employed by enterprises, cooperatives, production cooperatives, farms, households, individuals, and organizations that hire labor under contracts.

DECREE

Prescribing the minimum wage levels for workers employed in enterprises, cooperatives, cooperative groups, farms, households, individuals, and agencies and organizations that hire labor under labor contracts

households, individuals, and agencies or organizations that hire labor under employment contracts

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

Based on the Labor Code dated June 18, 2012;

Pursuant to the Enterprise Law dated November 29, 2005;

At the proposal of the Minister of Labor, Invalids and Social Affairs,

The Government promulgates this Decree prescribing the minimum wage levels for workers employed in enterprises, cooperatives, cooperative groups, farms, households, individuals, and agencies and organizations that hire labor under labor contracts.

Article 1. Scope of Regulation

This Decree prescribes the minimum wage levels applicable to workers employed in enterprises, cooperatives, cooperative groups, farms, households, individuals, and agencies and organizations that hire labor under labor contracts in accordance with the Labor Code.

Article 2. Applicability

1. Enterprises established, managed, and operating under the Law on Enterprises (including foreign-invested enterprises in Vietnam that have not re-registered or have not converted according to Point a Clause 2 and Clause 3 Article 170 of the Law on Enterprises).

2. Cooperatives, cooperative unions, production cooperatives, farms, households, individuals, and other Vietnamese organizations employing workers under labor contracts.

3. Foreign agencies and organizations, international organizations, and individual foreigners in Vietnam that hire labor under labor contracts (except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise). The enterprises, cooperatives, cooperative unions, cooperative groups, farms, households, agencies, organizations, and individuals specified in Clauses 1, 2, and Clause 3 of this Article hereinafter shall be collectively referred to as enterprises.

Article 3. Minimum Wage Levels

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

a) VND 3,100,000 per month, applicable to enterprises operating in the area of Region I.

b) VND 2,750,000 per month, applicable to enterprises operating in the area of Region II.

c) VND 2,400,000 per month, applicable to enterprises operating in the area of Region III.

d) VND 2,150,000 per month, applicable to enterprises operating in the area of Region IV.

1. Enterprises operating in which area shall apply the minimum wage level prescribed for that area. In cases where an enterprise has branches or subsidiaries operating in areas with different minimum wage levels, the branch or subsidiary operating in which area shall apply the minimum wage level prescribed for that area.

Article 4. Principles for Applying Minimum Wage Levels by Region

1. Enterprises operating in which area shall apply the minimum wage level prescribed for that area.

2. Enterprises operating in contiguous areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage level. In cases where an enterprise has branches or subsidiaries operating in areas with different minimum wage levels, the branch or subsidiary operating in which area shall apply the minimum wage level prescribed for that area.

3. Enterprises operating in industrial zones or export processing zones located in areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage level.

4. Enterprises operating in areas where there has been a change in name or division shall temporarily apply the minimum wage level prescribed for the area before the change in name or division until the Government issues new regulations.

5. Enterprises operating in newly established areas formed from one or more areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage level. In cases where enterprises operate in a provincial-level city newly established from one or more areas in Region IV, they shall apply the minimum wage level prescribed for the remaining provincial-level city at Clause 3 of the Appendix issued together with this Decree.

Article 5. Application of the minimum wage level for regions

1. The minimum wage levels prescribed in Article 3 of this Decree are the lowest levels serving as the basis for enterprises and workers to negotiate and pay wages, ensuring that the wage paid to workers working under normal working conditions, completing the normal monthly working hours, and fulfilling agreed work quotas or tasks must guarantee:

a) Not being lower than the minimum wage level for untrained workers performing the simplest tasks;

b) Being at least 7% higher than the minimum wage level for trained workers as stipulated in Clause 2 of this Article.

2. Trained workers include:

a) Persons who have been granted vocational certificates, diplomas, or secondary vocational education diplomas in accordance with Decree No. 90/CP dated November 24, 1993 of the Government prescribing the structure of the national education system, educational and training qualifications and certificates;

b) Persons who have been granted vocational certificates or diplomas in accordance with the Education Law of 1998, the Education Law of 2005, and national vocational skill certificates in accordance with the Employment Law;

c) Persons who have been granted certificates under regular vocational training programs, primary vocational certificates, secondary vocational education diplomas, higher vocational education diplomas, or completed vocational training programs under vocational training contracts in accordance with the Vocational Training Law;

d) Persons who have been granted vocational certificates or diplomas from overseas training institutions;

đ) Persons who have been trained in vocational skills by enterprises or self-taught and tested and assigned to jobs requiring vocational training by enterprises.

3. Based on the minimum wage levels prescribed in Article 3 of this Decree and the contents agreed upon in labor contracts with workers, collective labor agreements, or enterprise regulations, enterprises shall coordinate with the grassroots trade union executive committee and workers to negotiate and determine adjustments to salary grades, salary scales, salaries stipulated in labor contracts, and salaries paid to workers in a manner consistent with labor laws and reasonably balanced between wages for untrained and trained workers and workers with high technical expertise, and between newly recruited workers and those with long-term service at the enterprise.

4. When implementing the minimum wage levels prescribed in this Decree, enterprises may not eliminate or reduce wage systems for overtime work, night shifts, hazardous work environments, or other benefits provided by law for workers in hazardous occupations. Allowances, subsidies, and bonuses stipulated by enterprises shall be implemented according to agreements in labor contracts, collective labor agreements, or enterprise regulations.

Article 6. Effectiveness

1. This Decree shall take effect from January 1, 2015. The Decree No. 182/2013/NĐ-CP dated November 14, 2013 of the Government stipulating the minimum wage levels for workers employed by enterprises, cooperatives, production cooperatives, farms, households, individuals, and organizations that hire labor shall cease to be effective from the date this Decree takes effect.

2. The Ministry of Labor - Invalids and Social Affairs shall take the lead, coordinate with the Vietnam General Confederation of Labor, the Vietnam Chamber of Commerce and Industry, the Vietnam Union of Cooperatives, the Vietnam Association of Small and Medium Enterprises, relevant ministries and agencies, and the People's Committees of provinces and centrally-run cities to disseminate and publicize this Decree to workers and employers, supervise and inspect the implementation of regional minimum wages as prescribed in this Decree; and submit proposals to the Government for consideration and adjustment of regional minimum wages as provided.

3. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-run city People's Committees, and related agencies and enterprises are responsible for implementing this Decree./.