Decree No. 141/2017/ND-CP on the minimum wage levels for workers under labor contracts

DECREE

Prescribing the minimum wage levels for workers under labor contracts
working under labor contracts

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Labor Code dated June 18, 2012;

Pursuant to the Enterprise Law dated November 26, 2014;

At the request of the Minister of Labor, War Invalids and Social Affairs,Pursuant to the request of the Director General of the Department of Vocational Education;

The Government promulgates this Decree prescribing the minimum wage levels for workers under labor contracts.4. Foreign organizations, international organizations, and foreign individuals residing in Vietnam that hire workers under labor contracts (except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise).

Article 1. Scope of Regulation

This Decree regulates the minimum wage levels applicable to workers employed under labor contracts as stipulated in the Labor Code.

Article 2. Applicability

1. Employees work under labor contracts as prescribed by the Labor Code.

2. Enterprises established, managed, and operated according to the Enterprise Law.

3. Cooperatives, cooperative federations, production cooperatives, farms, households, individuals, and other organizations of Vietnam that hire laborers under labor contracts.

a) VND 3,980,000 per month, applicable to enterprises operating in areas within Region I.

Enterprises, cooperatives, cooperative unions, production cooperatives, farms, households, agencies, organizations, and individuals specified in Clauses 2, 3, and Clause 4 of this Article shall hereinafter be collectively referred to as enterprises.

Article 3. Minimum Wage Levels

1. The minimum wage levels applicable to workers employed in enterprises are as follows:

b) VND 3,530,000 per month, applicable to enterprises operating in areas within Region II.

c) VND 3,090,000 per month, applicable to enterprises operating in areas within Region III.

d) VND 2,760,000 per month, applicable to enterprises operating in areas within Region IV.

2. The geographical areas to which the minimum wage levels apply are defined according to administrative units at the district, county, town, and provincial city level. The list of geographical areas applying the minimum wage levels for Regions I, II, III, and IV is specified in the Appendix attached hereto.

1. Enterprises operating in which area shall apply the minimum wage level prescribed for that area. In cases where an enterprise has branches or subsidiaries operating in areas with different minimum wage levels, the branch or subsidiary operating in which area shall apply the minimum wage level prescribed for that area.

Article 4. Principles for Applying Minimum Wage Levels by Region

3. Enterprises operating in areas that have undergone name changes or splits shall temporarily apply the minimum wage level prescribed for the area before the name change or split until the Government issues new regulations.

2. Enterprises operating in industrial zones or export processing zones located in different areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage level.

4. Enterprises newly established from one area or multiple areas with different minimum wage levels shall apply the minimum wage level corresponding to the area with the highest minimum wage level. In cases where an enterprise operates in a provincial city newly established from one area or multiple areas within Region IV, it shall apply the minimum wage level prescribed for the remaining provincial city as stipulated in Section 3 of the Appendix attached hereto.

1. The minimum wage levels prescribed in Article 3 of this Decree serve as the lowest basis for enterprises and workers to negotiate and pay wages, ensuring that the wage paid to workers performing work under normal conditions, guaranteeing sufficient regular working hours in a month and completing agreed-upon labor quotas or tasks must ensure:

Article 5. Application of the minimum wage level for regions

a) Individuals who have been issued vocational certificates, trade certificates, vocational diplomas, technical secondary school diplomas, college diplomas, general university certificates, bachelor's degrees, master's degrees, or doctorate degrees as prescribed in Decree No. 90/CP dated November 24, 1993 of the Government on the structure of the national education system, the system of educational certificates and qualifications;

a) Not lower than the minimum wage level for workers performing the simplest jobs;

b) At least 7% higher than the minimum wage level for workers performing jobs requiring vocational training or education as stipulated in Clause 2 of this Article.

2. Employees who have completed vocational training or vocational education include:

b) Individuals who have been issued vocational secondary school diplomas, vocational training certificates, college diplomas, university diplomas, master's degrees, doctorate degrees, vocational education certificates, higher education certificates, and continuing education certificates as prescribed in the Education Law of 1998 and the Education Law of 2005;

c) Individuals who have been issued certificates from regular vocational training programs, primary vocational certificates, intermediate vocational graduation certificates, advanced vocational graduation certificates, or completed vocational training programs as stipulated in the Vocational Training Law;

d) Individuals who have been issued vocational education certificates and qualifications for primary, intermediate, and advanced vocational training; regular vocational training, and other vocational training programs as prescribed in the Vocational Education Law.

d) Those who have been issued a national vocational skills certificate according to the provisions of the Labor Law;

3. When implementing the minimum wage levels prescribed in this Decree, enterprises may not eliminate or reduce wage supplements for overtime work, night shifts, hazardous work, and supplementary benefits in kind for hazardous occupations and other benefits as prescribed by labor laws. Additional allowances, bonuses, and subsidies determined by the enterprise shall be implemented according to agreements in labor contracts, collective labor agreements, or enterprise regulations.

f) Those who have been issued a graduation diploma from higher education training according to the Higher Education Law;

g) Those who have been issued certificates and qualifications from foreign educational institutions;

h) Those who have been trained in vocational skills by enterprises or self-taught and have been tested and assigned to work requiring vocational training by enterprises.

1. This Decree takes effect from January 25, 2018. The provisions of this Decree shall be implemented from January 1, 2018. Decree No. 153/2016/NĐ-CP dated November 14, 2016 of the Government prescribing the minimum wage levels for workers under labor contracts shall cease to be effective from the date this Decree takes effect.

Article 6. Effectiveness and Responsibility for Implementation

2. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairpersons of provincial and centrally-administered municipal People's Committees, and relevant agencies and enterprises are responsible for enforcing this Decree./.

2. The ministers, heads of ministerial-level agencies, heads of government agencies, chairpersons of provincial people's committees under the central government, and relevant agencies and enterprises shall be responsible for implementing this Decree./.