Decree No. 167/2007/ND-CP stipulates the minimum wage levels for workers employed by companies, enterprises, cooperatives, production cooperatives, farms, households, individuals, and other organizations in Vietnam that hire labor.

DECREE

Prescribing the minimum wage levels for workers employed by companies, enterprises, cooperatives, production cooperatives, farms, households, individuals, and other organizations in Vietnam that hire labor

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THE GOVERNMENT

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

Pursuant to the Labor Code dated June 23, 1994; the Law Amending and Supplementing Certain Provisions of the Labor Code dated April 2, 2002; the Law Amending and Supplementing Certain Provisions of the Labor 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 Labor, Invalids, and Social Affairs,

DECREE:

Article 1. Prescribes the application of minimum wage levels for:

1. Companies established, managed, and operated under the State Enterprise Law.

2. Limited liability companies with one member owned 100% by the State, organized and operated according to the Enterprise Law.

3. Enterprises established, managed, and operated under the Enterprise Law (excluding foreign-invested enterprises).

4. Cooperatives, cooperative unions, production cooperatives, farms, households, individuals, and other organizations in Vietnam that hire labor.

The companies, enterprises, organizations, and individuals specified in Clauses 1, 2, 3, and 4 of this Article shall collectively be referred to as enterprises.

Article 2. The minimum wage level used to pay wages for workers performing the simplest work under normal working conditions at enterprises prescribed in Article 1 of this Decree shall be implemented from January 1, 2008, as follows:

1. A monthly rate of 620,000 VND applicable to enterprises operating in the districts of Hanoi City and Ho Chi Minh City.

2. A monthly rate of 580,000 VND applicable to enterprises operating in the counties of Hanoi City and Ho Chi Minh City; the districts of Hai Phong City; Ha Long City in Quang Ninh Province; Bien Hoa City, Long Khanh Town, and the counties of Nhon Trach, Long Thanh, Vinh Cuu, and Trang Bom in Dong Nai Province; Thu Dau Mot Town and the counties of Thu An, Di An, Ben Cat, and Tan Uyen in Binh Duong Province; Vung Tau City in Ba Ria-Vung Tau Province.

3. A monthly rate of 540,000 VND applicable to enterprises operating in the remaining areas.

Article 3.

1. Enterprises prescribed in Clause 1 and Clause 2 of Article 1 of this Decree shall apply the minimum wage levels prescribed in Article 2 of this Decree to calculate unit labor costs.

For enterprises prescribed in Clause 1 of Article 1 of this Decree, if they ensure the conditions stipulated in Article 4 of Government Decree No. 206/2004/NĐ-CP dated December 14, 2004 on labor management, salary, and income in state-owned companies, they may apply an adjustment factor not exceeding 1.34 times the general minimum wage; in cases where they meet the conditions stipulated in Article 4 of Government Decree No. 206/2004/NĐ-CP and have planned profits higher than 5% compared to the actual profit of the previous year, they may apply a maximum adjustment factor not exceeding twice the general minimum wage stipulated in Government Decree No. 167/2007/NĐ-CP dated November 16, 2007 to calculate unit labor costs.

2. For enterprises prescribed in Clause 3 and Clause 4 of Article 1 of this Decree:

a) Apply the minimum wage levels prescribed in Article 2 of this Decree to determine the wage scales, salary tables, various types of salary allowances, and the wage levels recorded in labor contracts, and implement other systems established and promulgated by the enterprise in accordance with the authority granted by labor laws.

b) The lowest salary paid to skilled workers (including those trained by the enterprise itself) must be at least 7% higher than the minimum wage levels prescribed in Article 2 of this Decree.

c) Encourage enterprises to implement higher minimum wage levels than those prescribed in Article 2 of this Decree.

d) Based on the minimum wage levels prescribed in Article 2 of this Decree, enterprises shall adjust salaries in labor contracts accordingly.

Article 4.

1. The minimum wage levels prescribed in Article 2 of this Decree shall be adjusted based on economic growth rates, living cost indices, and labor supply-demand ratios 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 adjustments to the minimum wage levels prescribed in Article 2 of this Decree.

Article 5. This Decree takes effect from January 1, 2008.

The Ministry of Labor, Invalids, and Social Affairs shall be responsible for guiding the implementation of this Decree.

Article 6. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government shall be responsible for implementing this Decree.