Decree No. 111/2008/ND-CP stipulates the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises, foreign agencies, organizations, international organizations, and foreign individuals in Vietnam.

DECREE

Prescribing the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises, foreign agencies, organizations, international organizations, and individual foreigners in Vietnam

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 five-year socio-economic development plan from 2006 to 2010;
Considering the proposal of the Minister of Labor, Invalids, and Social Affairs,

DECREE

Article 1. Prescribes the minimum wage levels applicable to foreign-invested enterprises, foreign agencies, organizations, international organizations, and individual foreigners in Vietnam (hereinafter referred to as enterprises) to be implemented from January 1, 2009, according to the following regions:

1. The level of 1,200,000 dong per month shall apply to enterprises operating in areas within Region I.

2. The level of 1,080,000 dong per month shall apply to enterprises operating in areas within Region II.

3. The level of 950,000 dong per month shall apply to enterprises operating in areas within Region III.

4. The level of 920,000 dong per month shall apply to enterprises operating in areas within Region IV.

List of areas in Region I, Region II, Region III, and Region IV attached as Appendix to this Decree.

Article 2.

1. The minimum wage levels prescribed in Article 1 of this Decree shall serve as the basis for calculating wage scales, salary tables, various types of salary allowances, the wages 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 those trained by enterprises themselves) must be at least 7% higher than the minimum wage levels prescribed in Article 1 of this Decree.

3. Enterprises are encouraged to implement higher minimum wage levels than those prescribed in Article 1 of this Decree.

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

Article 3.

1. The minimum wage levels prescribed in Article 1 of this Decree shall be adjusted based on economic growth rates, cost of living indices, and labor supply during 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 prescribed in Article 1 of this Decree.

Article 4. This Decree takes effect from January 1, 2009. Decree No. 168/2007/NĐ-CP dated November 16, 2007 of the Government prescribing the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises, foreign agencies, organizations, international organizations, and individual foreigners in Vietnam is hereby repealed.

Article 5. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under the direct jurisdiction of the central government shall be responsible for implementing this Decree.

ANNEX

Prescribing the list of areas applying the minimum wage levels

(Annexed to Decree No. 111/2008/NĐ-CP dated October 10, 2008 of the Government)

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, Thuan Thien, 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 in Hai Phong City;

- The districts under the city of Da Nang;

- Ninh Kieu and 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 (excluding provincial cities mentioned in Region II);

- Remaining counties in Hanoi city;

- Bac Ninh City, Tu Son Town, 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, My Hao, Van Lam, 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, Phuc Yen Town in Vinh Phuc Province;

- Remaining counties in Hai Phong city;

- Mong Cai City, Uong Bi, Cam Pha Towns in Quang Ninh Province;

- Da Lat City, Bao Loc Town in Lam Dong Province;

- Nha Trang City, Cam Ranh Town in Khanh Hoa Province;

- Trang Bang District in Tay Ninh Province;

- Remaining districts in Binh Duong Province;

- The remaining districts in the province of Dong Nai;

- Tan An Town, Duc Hoa, Ben Luc, Can Doc Districts in Long An Province;

- Remaining districts and towns in Can Tho City;

- Ba Ria Town, Chau Duc, Long Dien, Dat Do, Xuyen Moc Districts in Ba Ria-Vung Tau Province.

4. Region IV includes all remaining areas.