Decree No. 166/2007/ND-CP on the minimum wage

DECREE

Provision of the general minimum wage level

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Labour Code dated June 23, 1994; Law Amending and Supplementing Certain Provisions of the Labour Code dated April 2, 2002; Law Amending and Supplementing Certain Provisions of the Labour Code dated 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 for the period 2006-2010;

Considering the proposal of the Minister of Labour, Invalids and Social Affairs, the Minister of Home Affairs, and the Minister of Finance,

DECREE:

Article 1The general minimum wage level prescribed herein shall be implemented from January 1, 2008, at VND 540,000 per month to pay workers performing the simplest tasks under normal working conditions.

Article 2.

1. The general minimum wage level prescribed in this Decree applies to:

a) State agencies, armed forces, political organizations, and political-social organizations;

b) State-owned public institutions; public institutions of political organizations and political-social organizations; non-state public institutions established and operating in accordance with the law;

c) State-owned enterprises established and managed and operated in accordance with the Law on State-Owned Enterprises;

d) Limited liability companies wholly owned by the state with a capital contribution of 100%, organized and operated in accordance with the Law on Enterprises;

đ) Enterprises established and managed and operated in accordance with the Law on Enterprises;

e) Cooperatives, cooperative unions, production groups, farms, households, individuals, and other organizations in Vietnam that hire workers.

2. The general minimum wage level prescribed in this Decree does not apply to foreign-invested enterprises, foreign agencies and organizations, international organizations, and foreign individuals in Vietnam.

Article 3The general minimum wage level prescribed in this Decree serves as the basis:

1. For calculating wage levels in the wage scale, salary grade, and salary allowances, and implementing certain other benefits as provided by law for agencies, units, and organizations specified in points a, b, c, and d, Clause 1, Article 2 of this Decree.

2. For calculating the regional minimum wage for enterprises, organizations, and individuals specified in points c, d, đ, and e, Clause 1, Article 2 of this Decree.

3. For calculating subsistence allowances from January 1, 2008 onwards for surplus laborers as stipulated in Decree No. 110/2007/NĐ-CP dated June 26, 2007 of the Government on policies for surplus laborers due to restructuring state-owned enterprises.

4. For calculating contributions and benefits based on the general minimum wage.

Article 4The funding for implementing the general minimum wage level prescribed in this Decree for the relevant subjects shall be guaranteed by the state budget from the following sources:

1. Saving 10% of regular expenses (excluding salaries and salary-like payments) for each administrative agency and public institution under ministries, central-level agencies, and provinces and centrally-administered cities.

2. For public institutions with income, using at least 40% of retained earnings according to regulations. Specifically, public health institutions shall use at least 35% of retained earnings (after deducting drug, blood, transfusion fluid, chemical, and consumable material costs).

3. Using at least 40% of retained earnings according to regulations for administrative agencies with income.

4. Using 50% of increased local government revenue.

5. The central government budget shall ensure:

a) Supplementing funds to implement the general minimum wage level in cases where ministries, central-level agencies, and provinces and centrally-administered cities have complied with the provisions of Clauses 1, 2, 3, and 4 of this Article but still lack sufficient funds;

b) Supporting difficult regions that cannot balance an average of one-third of the general minimum wage for part-time village cadres and community representatives as determined in accordance with Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government.

Article 5The funding for implementing the general minimum wage level for workers in enterprises and businesses shall be borne by the enterprises and businesses and included in their cost of production and business operations.

Article 6.

1. The Ministry of Labour, Invalids and Social Affairs, after consulting the Vietnam General Confederation of Labour, employers' representatives, and relevant ministries and sectors, shall submit to the Government for adjustment of the general minimum wage level for each period; provide guidance on implementing the general minimum wage level for organizations and individuals specified in points c, d, đ, and e, Clause 1, Article 2 of this Decree; and provide guidance on calculating subsistence allowances as stipulated in Clause 3, Article 3 of this Decree for surplus laborers as specified in Decree No. 110/2007/NĐ-CP dated June 26, 2007.

2. The Ministry of Home Affairs, in coordination with the Ministry of Finance and relevant ministries and sectors, shall provide guidance on implementing the general minimum wage level for agencies, units, and organizations specified in point a and point b, Clause 1, Article 2 of this Decree.

3. The Ministry of Defence and the Ministry of Public Security, after reaching consensus with the Ministry of Home Affairs and the Ministry of Finance, shall provide guidance on implementing the general minimum wage level for subjects within their jurisdiction.

4. The Ministry of Finance, in coordination with relevant ministries and sectors, shall be responsible for:

a) Providing guidance on calculating and balancing funds to implement the general minimum wage level as prescribed in Article 4 of this Decree;

b) Reviewing and supplementing funds for implementing the general minimum wage level for ministries, central-level agencies, and provinces and centrally-administered cities as specified in point a, Clause 5, Article 4 of this Decree, and ensuring targeted supplementary funding for difficult regions as specified in point b, Clause 5, Article 4 of this Decree, and compiling and reporting to the Prime Minister on the implementation results.

, Clause 1, Clause 2 Article 7a of this Regulation.This Decree takes effect from January 1, 2008..

Repealing Decree No. 203/2004/NĐ-CP dated December 14, 2004 prescribing the minimum wage level and Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government adjusting the general minimum wage level.

Article 8Ministers, heads of ministerial-level agencies, heads of agencies under the Government, and Chairpersons of provincial and centrally-administered city People's Committees are responsible for enforcing this Decree./.