Decree No. 107/2010/NĐ-CP stipulates the minimum wage for Vietnamese workers employed by foreign-invested enterprises, foreign agencies, organizations, and individuals from abroad in Vietnam.

DECREE

Specifies the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises

foreign agencies, organizations, international organizations

and individuals from abroad in Vietnam

____________________________

THE GOVERNMENT

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

Pursuant to the Labor Code dated June 23, 1994; Law Amending and Supplementing Certain Articles of the Labor Code dated April 2, 2002; Law Amending and Supplementing Certain Articles of the Labor Code dated June 29, 2006;

Pursuant to the Enterprise Law dated November 29, 2005;

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

DECREE:

Article 1. Minimum wage level

The minimum wage level for paying wages to Vietnamese workers performing the simplest work under normal working conditions for foreign-invested enterprises, foreign agencies, organizations, international organizations, and individuals from abroad in Vietnam (hereinafter referred to as enterprises) shall be as follows according to regions:

1. VND 1,550,000 per month applicable to enterprises operating in areas within Region I.

2. VND 1,350,000 per month applicable to enterprises operating in areas within Region II.

3. VND 1,170,000 per month applicable to enterprises operating in areas within Region III.

4. VND 1,100,000 per month applicable to enterprises operating in areas within Region IV.

Article 2. The areas applying the minimum wage level are specified in Appendix I and Appendix II attached hereto.

Article 3. Implementation of the minimum wage level

1. The minimum wage level prescribed in Article 1 of this Decree shall serve as the basis for calculating wage levels in the wage scale, various types of wage allowances, wage levels stipulated in labor contracts, and implementing other systems established and promulgated by enterprises in accordance with the authority granted by labor laws.

2. The lowest wage paid to skilled workers (including workers trained by enterprises themselves) must be at least 7% higher than the minimum wage level prescribed in Article 1 of this Decree.

3. Enterprises are encouraged to implement a minimum wage level higher than the minimum wage level prescribed in Article 1 of this Decree.

4. Based on the minimum wage level prescribed in Article 1 of this Decree, enterprises shall adjust wages in labor contracts accordingly.

Article 4. Implementation

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 and agencies, and People's Committees of provinces and centrally-administered cities to disseminate and popularize information about the minimum wage level prescribed in this Decree to workers and employers, and to monitor and supervise its implementation.

Article 5. Effectiveness

1. The minimum wage level prescribed in Article 1 of this Decree shall be implemented as follows:

a) Areas specified in Appendix I attached hereto shall implement from January 1, 2011.

b) Areas adjusted to apply the minimum wage level prescribed in Appendix II attached hereto shall implement from July 1, 2011.

2. Repeal Decree No. 98/2009/NĐ-CP dated October 30, 2009 of the Government prescribing the minimum wage level for Vietnamese workers employed by foreign-invested enterprises, foreign agencies, organizations, international organizations, and individuals from abroad in Vietnam.

3. Ministers, Heads of ministerial-level agencies, Heads of agencies directly under the Government, Chairmen of provincial and centrally-administered city People's Committees, and relevant agencies and enterprises are responsible for enforcing this Decree./.