Decree No. 153/2016/ND-CP on the minimum wage levels for workers under labor contracts

DECREE

REGULATING THE MINIMUM WAGE LEVEL FOR LABOR CONTRACTS IN DIFFERENT REGIONS

On the basis of the Law on Government Organization dated June 19, 20165;

Pursuant to the Labor Code on June 18, 2012;labor dated June 18,th, 20162;

Pursuant to the Enterprise Law dated November 26, 2014;

Decree No. 07/2021/NĐ-CP

The Government promulgates this Decree stipulating the minimum wage levels for regions applicable to employees working under labor contracts.4. Foreign agencies, organizations, and foreign individuals residing in Vietnam who hire employees under labor contracts (except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise). Enterprises, cooperatives, cooperative unions, production cooperatives, family 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 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) A level of VND 3,750,000 per month, applicable to enterprises operating in areas within Region I.

Article 3. Minimum Wage Levels

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

b) A level of VND 3,320,000 per month, applicable to enterprises operating in areas within Region II.

c) A level of VND 2,900,000 per month, applicable to enterprises operating in areas within Region III.

d) A level of VND 2,580,000 per month, applicable to enterprises operating in areas within Region IV.

2. The areas within Regions I, II, III, and IV are defined 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

2. Enterprises operating in industrial zones, export processing zones, economic zones, and high-tech parks located in areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage level.

3. Enterprises operating in areas where there has been a change in name or division shall temporarily apply the minimum wage level prescribed for the area before the change in name or division until the Government issues new regulations.

4. Enterprises operating in newly established areas formed from one or more areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage level. In cases where enterprises operate in newly established provincial-level cities formed from one or more areas within Region IV, they shall apply the minimum wage level prescribed for the remaining provincial-level city in Section 3 of the Appendix attached hereto.

1. The minimum wage levels prescribed in Article 3 of this Decree are the lowest levels serving as the basis for enterprises and employees to negotiate and pay wages, ensuring that the wage paid to employees working under normal working conditions, completing the standard work hours in a month, and fulfilling agreed-upon work quotas or tasks must guarantee:

Article 5. Application of the minimum wage level for regions

a) Individuals who have been issued vocational certificates, diplomas, vocational diplomas, intermediate vocational diplomas, general college certificates, bachelor's degrees, bachelor's diplomas, master's degrees, or doctoral degrees in accordance with Decree No. 90/CP dated November 24, 1993 of the Government stipulating the structure of the national education system, the framework of educational and training 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 diplomas, college diplomas, university diplomas, master's degrees, doctoral degrees; vocational education and training certificates; higher education certificates and regular education certificates according to 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 diplomas, advanced vocational diplomas, or completed vocational training programs under vocational training contracts as stipulated by the Vocational Training Law;

d) Individuals who have been issued national vocational skill certificates in accordance with the Labor Law;

đ) Individuals who have been issued vocational education and training certificates at the primary, intermediate, and advanced levels; regular vocational training programs, and other vocational training programs as stipulated by the Vocational Education Law;

3. Based on the minimum wage levels prescribed in Article 3 of this Decree and the contents agreed upon in the labor contracts with employees, collective labor agreements, or enterprise regulations, enterprises shall coordinate with the grassroots trade union executive committee and employees to negotiate and determine adjustments to the wage scales, salary tables, salaries recorded in labor contracts, and salaries paid to employees in a manner consistent with labor laws and reasonably balanced wages between untrained and trained workers and workers with high technical expertise, as well as between newly recruited workers and those with long-term service at the enterprise.

e) Persons who have been issued graduation diplomas for higher education training levels as stipulated in 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.

4. When implementing the minimum wage levels prescribed in this Decree, enterprises may not eliminate or reduce wage benefits for overtime work, night shifts, work under harsh or hazardous conditions, or supplementary benefits in kind for positions involving heavy or hazardous work, as stipulated by labor laws. Additional allowances, supplements, subsidies, and bonuses stipulated by the enterprise shall be implemented according to the agreements in labor contracts, collective labor agreements, or enterprise regulations.

1. This Decree takes effect from January 1, 2017. Decree No. 122/2015/NĐ-CP dated November 14, 2015 of the Government stipulating the minimum wage levels for employees working in enterprises, cooperatives, cooperative unions, farms, family households, individuals, and agencies and organizations hiring employees shall cease to be effective from the date this Decree takes effect.

Article 6. Effectiveness

This Decree takes effect from January 1, 2017. The Government's Decree No. 122/2015/NĐ-CP dated November 14, 2015, which stipulates the minimum wage levels for workers employed by enterprises, cooperatives, production cooperatives, farms, households, individuals, and organizations that hire labor, shall cease to be effective from the date this Decree takes effect.

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, the All-Vietnam Association of Cooperatives, the Vietnam Association of Small and Medium Enterprises, relevant ministries, agencies, and People's Committees of provinces and centrally governed cities to disseminate and popularize the minimum regional wage levels as prescribed in this Decree; and submit proposals to the Government for consideration and adjustment of the minimum regional wage levels in accordance with the provisions thereof.

3. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and centrally governed city People's Committees, and relevant agencies and enterprises shall be responsible for implementing this Decree.