Decree No. 110/2008/NĐ-CP stipulates the minimum wage levels for workers employed by companies, enterprises, cooperatives, production cooperatives, farms, households, individuals, and other organizations in Vietnam that hire labor.

 

DECREE

REGULATIONS ON THE MINIMUM WAGE LEVELS FOR LABORERS WORKING IN COMPANIES, ENTERPRISES, COOPERATIVES, COLLECTIVE ORGANIZATIONS, FARMS, HOUSEHOLDS, INDIVIDUALS AND OTHER ORGANIZATIONS OF VIETNAM THAT EMPLOY LABOR

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Labor Code on June 23, 1994; Law Amending and Supplementing Certain Provisions of the Labor Code on April 2, 2002; Law Amending and Supplementing Certain Provisions of the Labor Code on June 29, 2006;
Pursuant to Resolution No. 56/2006/NQ-QH11 dated June 29, 2006 of the National Assembly on the plan for socio-economic development during the 2006-2010 period;
Considering the proposal of the Minister of Labor, Invalids, and Social Affairs,

DECREE

Article 1. The minimum wage levels shall be applied to:

1. Companies established, managed, and operated under the Law on State-Owned Enterprises.

2. Limited liability companies with 100% state-owned capital established, managed, and operated under the Enterprise Law.

3. Enterprises established, managed, and operated under the Enterprise Law (excluding foreign-invested enterprises).

4. Cooperatives, cooperative unions, collective organizations, farms, households, individuals, and other organizations of Vietnam that employ labor.

Companies, enterprises, organizations, and individuals specified in Clauses 1, 2, 3, and 4 of this Article shall collectively be referred to as enterprises.

Article 2. The minimum wage level used to pay wages for workers performing the simplest tasks under normal working conditions at enterprises specified in Article 1 of this Decree shall take effect from January 1, 2009, as follows by regions:

1. A rate of 800,000 VND/month applicable to enterprises operating in Region I.

2. A rate of 740,000 VND/month applicable to enterprises operating in Region II.

3. A rate of 690,000 VND/month applicable to enterprises operating in Region III.

4. A rate of 650,000 VND/month applicable to enterprises operating in Region IV.

List of areas in Regions I, II, III, and IV attached to this Decree.

Article 3.

1. Enterprises specified in Clauses 1 and 2 of Article 1 of this Decree shall apply the minimum wage levels specified in Article 2 of this Decree to calculate unit labor costs.

For enterprises specified in Clause 1 of Article 1 of this Decree, if they ensure the conditions stipulated in Article 4 of Government Decree No. 206/2004/NĐ-CP dated December 14, 2004 on labor management, salary, and income in state-owned companies, they may apply an adjustment factor not exceeding 1.34 times the general minimum wage; in cases where they meet the conditions stipulated in Article 4 of Government Decree No. 206/2004/NĐ-CP and achieve a profit plan higher than 5% compared to the previous year's actual profit, they may apply an adjustment factor not exceeding twice the general minimum wage stipulated in Government Decree No. 166/2007/NĐ-CP dated November 16, 2007 to calculate unit labor costs.

2. For enterprises specified in Clauses 3 and 4 of Article 1 of this Decree:

a. Apply the minimum wage levels specified in Article 2 of this Decree to determine salary levels in the salary scale, various types of salary allowances, salary levels recorded in labor contracts, and implement other systems established and issued by the enterprise according to the authority granted by labor laws;

b. The lowest salary paid to skilled workers (including those trained by the enterprise itself) must be at least 7% higher than the minimum wage levels specified in Article 2 of this Decree;

c. Encourage enterprises to implement higher minimum wage levels than those specified in Article 2 of this Decree;

d. Based on the minimum wage levels specified in Article 2 of this Decree, enterprises adjust salaries in labor contracts accordingly.

Article 4.

1. The minimum wage levels specified in Article 2 of this Decree will be adjusted based on economic growth rates, living cost indices, and labor supply-demand balance over each period.

2. The Ministry of Labor, Invalids, and Social Affairs, after consulting the Vietnam General Confederation of Labor, representatives of employers, and relevant ministries and sectors, shall submit to the Government for adjustment of the minimum wage levels specified in Article 2 of this Decree.

Article 5.

1. This Decree takes effect from January 1, 2009. It abolishes Government Decree No. 167/2007/NĐ-CP dated November 16, 2007 on the minimum wage levels for laborers working in companies, enterprises, cooperatives, collective organizations, farms, households, individuals, and other organizations of Vietnam that employ labor.

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

Article 6. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government shall be responsible for implementing this Decree.

 

 

ANNEX

REGULATIONS ON THE LIST OF AREAS APPLYING THE MINIMUM WAGE LEVELS BY REGION
(Annexed to Government Decree No. 110/2008/NĐ-CP dated October 10, 2008)

1. Region I, including the following areas:

- Districts and Ha Dong City in Hanoi City;

- Districts in Ho Chi Minh City;

2. Region II, including the following areas:

- Gia Lam, Dong Anh, Son Tay, Thanh Tri, Tu Liem, Thanh Tri, Thanh Tri, Hoai Duc, Dan Phuong, Thach That, Quoc Oai, and Son Tay City in Hanoi City;

- Districts in Ho Chi Minh City;

- Districts and Thuy Nguyen, An Duong Districts in Hai Phong City;

- The districts under the city of Da Nang;

- Ninh Kieu, Binh Thuy Districts in Can Tho City;

- Ha Long city in Quang Ninh province;

- City Bien Hoa, town Long Khanh and districts Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom in Dong Nai Province;

- Thu Dau Mot City and Thu An, Di An, Ben Cat, Tan Uyen Districts in Binh Duong Province;

- Vung Tau City and Tan Thanh District in Ba Ria-Vung Tau Province.

3. Region III, including the following areas:

- Provincial cities (except those mentioned in Region II);

- Remaining counties in Hanoi city;

- Bac Ninh City, Tu Son Town, and Que Vo, Tien Du, Yen Phong Districts in Bac Ninh Province;

- Bac Giang City and Viet Yen, Yen Dung Districts in Bac Giang Province;

- Hung Yen Town and My Hao, Van Lan, Van Giang, Yen My Districts in Hung Yen Province;

- Hai Duong City and Cam Giang, Nam Sach, Chi Linh, Kim Thanh, Kinh Mon Districts in Hai Duong Province.

- Vinh Yen City and Phuc Yen Town in Vinh Phuc Province;

- Remaining counties in Hai Phong city;

- The city of Mong Cai, the towns of Uong Bi and Cam Pha in Quang Ninh province;

- The city of Da Lat, the town of Bao Loc in Lam Dong province;

- The city of Nha Trang, the town of Cam Ranh in Khanh Hoa province;

- Trang Bang district in Tay Ninh province;

- The remaining districts in Binh Duong province;

- The remaining districts in the province of Dong Nai;

- The town of Tan An and the districts of Duc Hoa, Ben Luc, and Can Duoc in Long An province;

- The remaining districts and towns in Can Tho city;

- The town of Ba Ria and the districts of Chu Doc, Long Dien, Dat Do, and Xuyen Moc in Ba Ria-Vung Tau province.

4. Region IV, comprising the remaining areas.