Decree No. 22/2011/NĐ-CP on the minimum wage

DECREE

Prescribing the General Minimum Wage

 ___________________

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; the Law Amending and Supplementing Article 73 of the Labor Code dated April 2, 2007;

Pursuant to Resolution No. 52/2010/QH12 dated November 10, 2010 of the National Assembly on the state budget estimate for 2011;

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

DECREE:

Article 1. The general minimum wage prescribed herein shall take effect from May 1, 2011 at 830,000 VND per month.

Article 2. The general minimum wage prescribed in this Decree shall apply to officials, civil servants, public employees, members of armed forces, and workers employed in agencies, units, and organizations:

1. State agencies, armed forces, political organizations, and political-social organizations.

2. State-run public service units; public service units of political organizations and political-social organizations.

3. Limited liability companies wholly owned by the State organized and operating under the Enterprise Law.

Article 3. The general minimum wage prescribed in this Decree shall be used as a basis:

1. To calculate various wage levels in the wage scale, wage rate, and wage allowances, and to implement certain other benefits according to the provisions of the law for officials, civil servants, public employees, members of armed forces, and workers employed in agencies, units, and organizations specified in Article 2 of this Decree.

2. To calculate assistance from May 1, 2011 onwards for surplus laborers pursuant to Decree No. 91/2010/NĐ-CP dated August 20, 2010 of the Government prescribing policies for surplus workers when restructuring limited liability companies wholly owned by the State.

3. To calculate contributions and benefits based on the general minimum wage.

Article 4. The funding for implementing the general minimum wage prescribed in this Decree for the subjects covered by the state budget shall be sourced from:

1. Using 10% of the savings from regular expenditure (excluding salaries and salary-like payments) according to the approved budget for administrative agencies and public service units in 2011.

2. Using at least 40% of the retained revenue according to the regime in 2011 of administrative agencies and public service units with income. For public health service units, using at least 35% of the retained revenue (after deducting drug, blood, transfusion fluids, chemicals, consumable materials, and replacement materials costs).

3. Using 50% of the additional revenue realized compared to the 2010 budget forecast of local budgets.

4. Remaining funds from salary reform implemented up to the end of 2010 by administrative agencies, public service units, and local government budgets.

5. The central budget will ensure:

a) Supplementing the funding to implement the general minimum wage in cases where Ministries, central agencies, and provinces/cities directly under the Central Government have complied with the provisions of Clause 1, Clause 2, Clause 3, and Clause 4 of Article 4 of this Decree but still lack sufficient funds.

b) Supporting difficult regions that cannot balance their sources with an average of two-thirds of the general minimum wage for non-professional village, ward, town, commune, and neighborhood representatives as stipulated in Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government.

Article 5. The funding when implementing the general minimum wage for workers in companies specified in Clause 3 of Article 2 shall be guaranteed by the company and recorded in production and business costs.

Article 6. Responsibilities for guiding implementation

1. The Ministry of Labor, Invalids and Social Affairs, after consulting the Vietnam General Confederation of Trade Unions, employers' representatives, and relevant Ministries/Governmental Agencies, shall guide the implementation of the general minimum wage for limited liability companies wholly owned by the State; and guide the calculation of assistance as prescribed in Clause 2 of Article 3 of this Decree for surplus workers as prescribed in Clause 2 of Article 3 of this Decree for surplus workers as prescribed in Decree No. 91/2010/NĐ-CP dated August 20, 2010 of the Government.

2. The Ministry of Home Affairs shall lead and coordinate with the Ministry of Finance and relevant Ministries/Governmental Agencies to guide the implementation of the general minimum wage for agencies, units, and organizations specified in Clause 1 and Clause 2 of Article 2 of this Decree.

3. The Ministry of Defense and the Ministry of Public Security shall guide the implementation of the general minimum wage for subjects within their management scope after reaching consensus with the Ministry of Home Affairs and the Ministry of Finance.

4. The Ministry of Finance shall lead and coordinate with relevant Ministries/Governmental Agencies to be responsible for:

a) Guiding the calculation and balancing of funding sources to implement the general minimum wage as prescribed in Article 4 of this Decree;

b) Reviewing and supplementing funding for implementing the general minimum wage for Ministries, central agencies, and provinces/cities directly under the Central Government in cases prescribed in point a, Clause 5, Article 4 of this Decree and ensuring targeted supplementary funding for difficult regions as prescribed in point b, Clause 5, Article 4 of this Decree and compiling reports.

Article 7. Effectiveness

1. This Decree takes effect from May 19, 2011. The provisions set forth in this Decree shall be effective from May 1, 2011.

2. Abolish Decree No. 28/2010/NĐ-CP dated March 25, 2010 of the Government prescribing the general minimum wage.

3. Companies and organizations specified in Clause 3, Article 6 of Decree No. 108/2010/NĐ-CP dated October 29, 2010 of the Government shall apply the general minimum wage rate prescribed in this Decree to calculate unit labor costs, provided that if they satisfy the conditions stipulated in Article 4 of Decree No. 206/2004/NĐ-CP dated December 14, 2004 of the Government, they may apply an additional adjustment factor not exceeding 1.1 times the general minimum wage rate; in cases where they satisfy the conditions stipulated in Article 4 of Decree No. 206/2004/NĐ-CP and have planned profits at least 5% higher than the realized profits of the immediately preceding year, they may apply an additional adjustment factor not exceeding 1.7 times the general minimum wage rate.

Article 8. 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.