Decree No. 168/2007/ND-CP stipulates the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises, foreign agencies and organizations, and foreign individuals in Vietnam.

DECREE

Prescribing the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises, foreign agencies, organizations, international organizations, and foreign individuals in Vietnam

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THE GOVERNMENT

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

Pursuant to the Labor Code on June 23, 1994; the Law Amending and Supplementing Certain Provisions of the Labor Code on April 2, 2002; the Law Amending and Supplementing Certain Provisions of the Labor Code on June 29, 2006;

Pursuant to Resolution No. 56/2006/NQ-QH11 dated June 29, 2006 of the National Assembly's 11th Session on the plan for socio-economic development during the 2006-2010 period;

Considering the proposal of the Minister of Labor, Invalids, and Social Affairs,

DECREE:

Article 1. The minimum wage levels applicable for payment of wages to workers performing the simplest tasks under normal working conditions in foreign-invested enterprises, foreign agencies, organizations, international organizations, and foreign individuals in Vietnam (hereinafter referred to collectively as enterprises) shall be implemented from January 1, 2008, as follows:

1. A rate of 1,000,000 VND/month shall apply to enterprises operating in the districts of Hanoi City and Ho Chi Minh City.

2. A rate of 900,000 VND/month shall apply 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, Nhon Trach, Long Thanh, Vinh Cuu, and Trang Bom Districts in Dong Nai Province; Thu Dau Mot Town, Thu An, Di An, Ben Cat, and Tan Uyen Districts in Binh Duong Province; Vung Tau City in Ba Ria-Vung Tau Province.

3. A rate of 800,000 VND/month shall apply to enterprises operating in the remaining areas.

Article 2.

1. The minimum wage levels prescribed in Article 1 of this Decree shall serve as the basis for determining wage scales, salary tables, various types of salary supplements, and the wage rates stipulated in labor contracts, implementing other systems established and promulgated by enterprises within their authority as provided by labor laws.

2. The lowest wage 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 1 of this Decree.

3. Enterprises are encouraged to implement higher minimum wage levels than those prescribed in Article 1 of this Decree.

4. Based on the minimum wage levels prescribed in Article 1 of this Decree, enterprises shall adjust the wages specified in labor contracts accordingly.

Article 3

1. The minimum wage levels prescribed in Article 1 of this Decree shall be adjusted according to economic growth rates, living cost indices, and labor supply-demand ratios in each period.

2. The Ministry of Labor, Invalids, and Social Affairs, after soliciting opinions from the Vietnam General Confederation of Labor, representatives of employers, and relevant ministries and sectors, shall submit to the Government for adjustment of the minimum wage levels prescribed in Article 1 of this Decree.

Article 4

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

 Repeal Decree No. 03/2006/NĐ-CP dated January 6, 2006 of the Government prescribing the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises, foreign agencies, organizations, international organizations, and foreign individuals in Vietnam.

Article 5. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under central cities shall be responsible for implementing this Decree./.