Circular No. 12/2011/TT-BLDTBXH guiding the implementation of the general minimum wage for state-owned single-member limited liability companies

CIRCULAR

Guidelines for Implementing the General Minimum Wage Level for Limited Liability Companies

a member where the State is the owner

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Pursuant to Decree No. 22/2011/ND-CP dated April 4, 2011 of the Government stipulating the general minimum wage level;

Pursuant to Decree No. 186/2007/NĐ-CP dated December 25, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor - War Invalids and Social Affairs;

The Ministry of Labor, Invalids and Social Affairs hereby provides guidelines for implementing the general minimum wage level for limited liability companies with state ownership as follows:

Article 1. 1. Principles, criteria, and allocation standards for state budget investment capital development phase 2016-2020 serve as the basis for planning medium-term and annual investment plans from the state budget for the period 2016-2020 at the national level, at all levels, and in all sectors and units using state budget funds. They also serve as the basis for managing, supervising, inspecting, and auditing the implementation of medium-term and annual investment plans.

Workers under labor contracts; members of the Board of Members (or Chairman of the company), Supervisors, General Directors, Directors, Deputy General Directors, Deputy Directors, Chief Accountants (excluding General Directors, Directors, Deputy General Directors, Deputy Directors, and Chief Accountants working under contracts) in limited liability companies with sole membership owned by the State, including:

1. Limited liability companies with sole membership under Ministries, People's Committees of provinces and centrally-administered cities.

2. Limited liability companies with sole membership converted from State-owned Corporations, Parent Companies of State-owned Corporations, and State-owned Economic Groups by the Prime Minister, Ministers, and Chairmen of People's Committees of provinces and centrally-administered cities deciding on conversion, approving organizational operation charters.

3. Limited liability companies with sole membership under State-owned Economic Groups and State-owned Corporations established, converted, and having their organizational operation charters approved by the Prime Minister, Ministers, and Chairmen of People's Committees of provinces and centrally-administered cities.

Limited liability companies with sole membership owned by the State as specified in Clauses 1, 2, and 3 above shall hereinafter be referred to as the company.

Article 2. Apply the general minimum wage level to calculate wage levels.

The company applies the general minimum wage level of 830,000 VND/month to calculate wage levels and wage allowances from May 1, 2011 as follows:

1. Based on the general minimum wage level and salary scales in the wage tables and wage allowances prescribed in Decree No. 205/2004/ND-CP and Decree No. 204/2004/ND-CP dated December 14, 2004 of the Government, the company recalculates the wage levels and wage allowances serving as the basis for contributions and benefits under social insurance, unemployment insurance, health insurance; wages during suspension of work; holidays; annual leave, and other benefits as stipulated by labor laws.

2. The calculation of wage levels in the wage tables and wage allowances is carried out as follows: multiply the position-level salary coefficient according to job titles and positions; professional and vocational salary coefficient; position salary coefficient assigned; wage allowance; and any retained differential coefficient (if applicable) by the general minimum wage level of 830,000 VND/month.

Article 3. Apply the general minimum wage level to calculate allowances

The company applies the general minimum wage level of 830,000 VND/month to calculate allowances for surplus workers pursuant to Decree No. 91/2010/ND-CP dated August 20, 2010 of the Government stipulating policies for surplus workers when restructuring limited liability companies with sole membership owned by the State as follows:

1. Calculate severance pay, additional support for time worked in the public sector from May 1, 2011 onwards, and job-seeking allowance for surplus workers who terminate their labor contracts, receive severance pay, and additional support as stipulated in Clause 4, Article 3 and Article 4 of Decree No. 91/2010/ND-CP dated August 20, 2010 of the Government.

When implementing the aforementioned allowances and additional support, the company supplements corresponding columns to calculate actual time worked in the public sector and include severance pay in Table 9, 9a, and Table 10 issued together with Circular No. 38/2010/TT-LDTBXH dated December 24, 2010 of the Ministry of Labor, Invalids and Social Affairs.

2. Calculate additional allowance from May 1, 2011 onwards for surplus workers eligible for early retirement as stipulated in Point b, Clause 2, Article 3 of Decree No. 91/2010/ND-CP dated August 20, 2010 of the Government.

Article 4. Apply the general minimum wage level to calculate wages in some other companies and organizations

1. Parent companies of State-owned Economic Groups during the period before establishing wage scales and tables in accordance with Decree No. 101/2009/ND-CP dated November 5, 2009 of the Government regarding pilot establishment, organization, operation, and management of State-owned Economic Groups and State-owned Companies not yet converted into limited liability companies with sole membership, Vietnam Deposit Insurance Corporation, Vietnam Development Bank, and other organizations and units currently applying wage systems similar to those of State-owned Companies, shall from May 1, 2011 base the recalculation of wage levels in wage scales and tables, wage allowance levels, and employee benefit allowances stipulated in this Circular on the general minimum wage level of 830,000 VND/month; continue applying adjustment coefficients higher than the general minimum wage level to determine unit wage prices and wage funds for the Board of Directors (or Board of Members), General Directors (Directors), provided that:

a) If the conditions stipulated in Article 4 of Decree No. 206/2004/ND-CP dated December 14, 2004 of the Government and Point b, Clause 1, Section III of Circular No. 07/2005/TT-LDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids and Social Affairs are met, apply an adjustment coefficient not exceeding 1.1 times the general minimum wage level;

b) In cases where the conditions stipulated in Article 4 of Decree No. 206/2004/ND-CP, Point b, Clause 1, Section III of Circular No. 07/2005/TT-LDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids and Social Affairs are met and there is a profit plan at least 5% higher than the previous year's realized profit, apply an adjustment coefficient not exceeding 1.7 times the general minimum wage level.

2. For Project Management Units for Investment and Construction (excluding Project Management Units for Investment and Construction under a single-member limited liability company owned by the State, established pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999, Decree No. 16/2005/NĐ-CP dated February 7, 2005, and Decree No. 112/2006/NĐ-CP dated September 29, 2006 of the Government), currently managed according to Decree No. 12/2009/NĐ-CP dated February 12, 2009 of the Government on project management for investment and construction works, shall apply an adjustment factor not exceeding the general minimum wage level based on the scale of each work's size, importance, and cost-saving potential, ensuring that the management costs of the Project Management Unit do not increase, following the principle as follows:

a) For National Key Project Management Units or investment and construction projects belonging to Group A as specified in Appendix 1 issued together with the aforementioned Decree No. 12/2009/NĐ-CP, the adjustment factor shall not exceed 1.7 times the general minimum wage level.

b) For Project Management Units for investment and construction projects belonging to Groups B and C as specified in Appendix 1 issued together with the aforementioned Decree No. 12/2009/NĐ-CP, the adjustment factor shall not exceed 1.1 times the general minimum wage level.

3. For joint-stock companies and limited liability companies with two or more members converted from state-owned enterprises or single-member limited liability companies owned by the State with 100% capital contribution, which are currently applying wage scales, salary tables, and salary allowances prescribed by the State for state-owned enterprises under Decrees No. 205/2004/NĐ-CP and No. 204/2004/NĐ-CP dated December 14, 2004 of the Government, shall apply the general minimum wage level stipulated in Article 1 of Decree No. 22/2011/NĐ-CP dated April 4, 2011 of the Government to recalculate the salary levels, salary allowances in the wage scales, salary tables, and salary allowances as the basis for calculating social insurance contributions, unemployment insurance contributions, health insurance contributions, wages during suspension of work, holidays, annual leave, and other benefits for employees as prescribed by labor laws.

Article 5. Implementation Provisions

1. This Circular takes effect from June 15, 2011. The Circular No. 06/2010/TT-BLĐTBXH dated April 7, 2010 of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of the general minimum wage level for state-owned enterprises and single-member limited liability companies owned by the State with 100% capital contribution is hereby abolished.

2. The wage levels in the wage scales, salary tables, salary allowances, and assistance benefits for the subjects specified in this Circular, starting from May 1, 2011, shall be calculated based on the general minimum wage level of 830,000 VND/month.

3. When implementing the general minimum wage level stipulated in this Circular, the amount allocated for midday meals per employee in the companies, organizations, and units specified in Article 1 and Clause 1, Clause 2 of Article 4 of this Circular shall not exceed 620,000 VND/month. The implementation of the midday meal system shall follow the guidance provided in Circular No. 22/2008/TT-BLĐTBXH dated October 15, 2008 of the Ministry of Labor, Invalids, and Social Affairs on the implementation of the midday meal system in state-owned enterprises.

4. Ministries, agencies at the ministerial level, agencies under the Government, People's Committees of provinces and centrally-administered cities, Chairmen of the Board of Members or Chairmen of companies, Chairmen of the Boards of Directors of parent companies within state-owned economic groups and state-owned corporations have the responsibility to direct, urge, and inspect companies to comply strictly with the provisions of this Circular.

Any difficulties encountered during the implementation should be reported to the Ministry of Labor, Invalids, and Social Affairs for timely supplementary guidance./.