Decree No. 108/2010/ND-CP stipulates the minimum wage levels applicable to workers employed by enterprises, cooperatives, and other organizations in Vietnam that hire labor. The minimum wage levels are divided into four regions with specific thresholds.
Scope of application
Workers employed by companies, enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor.
Key points
- Enterprises operating in Region I shall pay a minimum wage of 1,350,000 VND/month; Region II is 1,200,000 VND/month; Region III is 1,050,000 VND/month; and Region IV is 830,000 VND/month.
- Enterprises have the right to choose a higher minimum wage than the prescribed regional minimum wage, but must ensure compliance with the conditions set forth in point a, Clause 2, Article 4 of Decree No. 86/2007/ND-CP.
- The lowest wage paid to skilled workers must be at least 7% higher than the prescribed regional minimum wage.
- Enterprises are encouraged to implement a higher minimum wage than the prescribed regional minimum wage.
- This Decree takes effect from January 1, 2011 for areas in Region I and July 1, 2011 for areas in Region II.
🌐 Social impact of this document
- Workers will receive the minimum wage according to their region, ensuring basic rights.
- Enterprises may apply a higher wage to attract and retain employees, but they must also face increased costs.
- Small and medium-sized enterprises may encounter difficulties in adjusting wages according to the new regulations.
❓ Frequently asked questions
What is the regional minimum wage?
The regional minimum wage is divided into four regions: 1,350,000 VND/month (Region I), 1,200,000 VND/month (Region II), 1,050,000 VND/month (Region III), and 830,000 VND/month (Region IV).
Can enterprises apply a higher wage?
Yes, enterprises have the right to choose a higher minimum wage than the prescribed regional minimum wage, but must ensure compliance with the conditions set forth in point a, Clause 2, Article 4 of Decree No. 86/2007/ND-CP.
What is the lowest wage for skilled workers?
The lowest wage paid to skilled workers must be at least 7% higher than the prescribed regional minimum wage.
When does this Decree take effect?
This Decree takes effect from January 1, 2011 for areas in Region I and July 1, 2011 for areas in Region II.
Who is responsible for guiding the implementation of this Decree?
The Ministry of Labor, Invalids, and Social Affairs is responsible for guiding the implementation of this Decree.
Full text
DECREE
Specifies the minimum wage levels for workers employed at companies, enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor.
enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor.
other organizations of Vietnam that hire labor
_______________________________
THE GOVERNMENT
Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Labor Code dated June 23, 1994; the Law Amending and Supplementing Certain Provisions of the Labor Code dated April 2, 2002; the Law Amending and Supplementing Certain Provisions 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. Scope of Application
This Decree stipulates the minimum wage levels applicable to workers employed at companies, enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor, including:
1. A state-owned limited liability company with a single member organized and operated according to the Enterprise Law.
2. An enterprise established, managed, and operated according to the Enterprise Law (excluding foreign-invested enterprises).
3. Cooperatives, cooperative unions, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor.
Companies, enterprises, organizations, and individuals specified in Clauses 1, 2, and 3 of this Article are collectively referred to as enterprises.
Article 2. Minimum wage levels by region
The minimum wage level to pay for the simplest work under normal working conditions in enterprises specified in Article 1 of this Decree shall be as follows by region:
1. VND 1,350,000 per month applicable to enterprises operating in areas within Region I.
2. VND 1,200,000 per month applicable to enterprises operating in areas within Region II.
3. VND 1,050,000 per month applicable to enterprises operating in areas within Region III.
4. VND 830,000 per month applicable to enterprises operating in areas within Region IV.
Article 3. The application areas of the regional minimum wage are specified in Appendix I and Appendix II attached to this Decree.
Article 4. Application of the minimum wage by region
1. Enterprises specified in Clause 1 of Article 1 of this Decree may choose a higher minimum wage than the regional minimum wage set by the Government in Article 2 of this Decree to calculate unit wage rates, wage funds for full-time members of the Board of Directors or the Chairman of the company, General Director (Director), Deputy General Director (Deputy Director), Chief Accountant, and full-time Supervisors, but must ensure compliance with the conditions stipulated in point a, Clause 2, Article 4 of Government Decree No. 86/2007/NĐ-CP dated May 28, 2007 on labor management and wages in state-owned limited liability companies with 100% state capital.
2. Enterprises specified in Clauses 2 and 3 of Article 1 of this Decree:
a) Apply the regional minimum wage stipulated in Article 2 of this Decree to calculate wage scales, wage tables, various types of wage allowances, and the wage levels recorded in employment contracts, and implement other systems established and issued by the enterprise in accordance with the authority granted by labor laws;
b) The lowest wage paid to skilled workers (including those trained by the enterprise itself) must be at least 7% higher than the regional minimum wage stipulated in Article 2 of this Decree;
c) Encourage enterprises to apply a higher minimum wage than the regional minimum wage stipulated in Article 2 of this Decree;
d) Based on the regional minimum wage stipulated in Article 2 of this Decree, enterprises adjust wages in employment contracts accordingly.
Article 5. 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 and sectors, and provincial and municipal people's committees under the central government to disseminate and popularize this Decree among workers and employers, and supervise its implementation.
Article 6. Effectiveness
1. The regional minimum wage stipulated in Article 2 of this Decree shall be implemented as follows:
a) Areas specified in Appendix I attached to this Decree shall be implemented from January 1, 2011.
b) Areas adjusted to apply the regional minimum wage stipulated in Appendix II attached to this Decree shall be implemented from July 1, 2011.
2. Abolish Government Decree No. 97/2009/NĐ-CP dated October 30, 2009 on the regional minimum wage for workers employed at companies, enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor.
3. State-owned parent companies of economic groups during the period before establishing a wage scale system in accordance with Government Decree No. 101/2009/NĐ-CP dated November 5, 2009 on piloting the establishment, organization, operation, and management of state-owned economic groups and state-owned companies not yet converted into state-owned limited liability companies, organizations, and units currently applying the wage system of state-owned companies continue to apply an additional wage adjustment factor compared to the general minimum wage to determine unit wage rates, wage funds for the Board of Directors (or Board of Members), General Manager (Manager) as stipulated in Government Decrees No. 205/2004/NĐ-CP, No. 206/2004/NĐ-CP, No. 207/2004/NĐ-CP dated December 14, 2004, No. 141/2007/NĐ-CP dated September 5, 2007, and No. 28/2010/NĐ-CP dated March 25, 2010 until the Government issues new regulations.
4. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairmen of provincial and municipal people's committees under the central government, and relevant agencies and enterprises are responsible for implementing this Decree./.
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