Circular No. 23/2008/TT-BLDTBXH guiding the implementation of the minimum regional wage for state-owned enterprises and joint-stock companies with 100% state-owned charter capital.

CIRCULAR

Guidelines for implementing the minimum wage level in regions for state-owned companies and single-member limited liability companies wholly owned by the State

state-owned enterprises and joint-stock companies with a single member holding 100% of the charter capital

shall not exceed 1.34 times the general minimum wage level.

________________________

 

Pursuant to Decree No. 110/2008/NĐ-CP dated October 10, 2008 of the Government stipulating the minimum wage level for workers employed by companies, enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor.

The Ministry of Labor, Invalids, and Social Affairs provides guidelines for implementing the minimum wage level in regions for state-owned companies and single-member limited liability companies wholly owned by the State as follows:

I. SCOPE OF REGULATION AND APPLICABLE OBJECTS

2. Applicability:

a. Companies established, managed, and operated under the Law on State-Owned Enterprises, including:

- State-owned corporation;

- Independent state-owned companies;

- Parent companies within economic groups established or approved for establishment by the Prime Minister and decided upon by the Minister, Head of a ministry equivalent to a minister, Head of a government agency, Chairman of the People's Committee of a province or centrally governed city, pursuant to the Prime Minister's decision or approval of the establishment plan.

- Parent companies within holding companies or companies operating under the parent-subsidiary model.

- Holding companies and subsidiaries with independent accounting of 100% state capital within economic groups during the period before conversion and re-registration in accordance with Decree No. 139/2007/NĐ-CP dated September 5, 2007 of the Government detailing and guiding the implementation of certain provisions of the Enterprise Law.

- Subsidiaries with independent accounting of 100% state capital within holding companies established by the State's investment decision.

b. Vietnam Deposit Insurance Corporation, Vietnam Development Bank, Project Management Board for Investment and Construction, and other state organizations applying salary systems similar to those of state-owned companies.

c. Single-member limited liability companies wholly owned by the State established, managed, and operated under the Enterprise Law.

The companies, organizations specified in points a, b, and c, Section 1 Item I of this Circular hereinafter referred to collectively as companies.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a. Workers employed under labor contracts stipulated in Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code regarding labor contracts.

b. Members of the Board of Directors, members of the Management Board, members of the Supervisory Board, members of the Board of Members (or Chairman of the company), Supervisors, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant (excluding General Director, Director, Deputy General Director, Deputy Director, Chief Accountant working under contracts).

II. IMPLEMENTATION OF THE MINIMUM WAGE LEVEL IN REGIONS

1. The minimum wage level for paying wages to workers performing the simplest work under normal working conditions in companies shall be implemented from January 1, 2009, according to Article 2 of Decree No. 110/2008/NĐ-CP as follows:

a. A monthly rate of 800,000 VND applicable to companies operating in areas within Region I, including:

- Districts and Ha Dong City in Hanoi;

- Districts in Ho Chi Minh City.

b. A monthly rate of 740,000 VND applicable to companies operating in areas within Region II, including:

- Gia Lam, Dong Anh, Soc Son, Thanh Tri, Tu Liem, Thuan Tin, Dan Phuong, Thach That, Quoc Oai, and Son Tay City in Hanoi;

- Counties in Ho Chi Minh City;

- Districts and Thuy Nguyen, An Duong counties in Hai Phong City;

- The districts under the city of Da Nang;

- Ninh Kieu and Binh Thuy districts in Can Tho City;

- Ha Long city in Quang Ninh province;

- City Bien Hoa, town Long Khanh and districts Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom in Dong Nai Province;

- Thu Dau Mot City and Thu An, Di An, Ben Cat, Tan Uyen counties in Binh Duong Province;

- Vung Tau City and Tan Thanh County in Ba Ria-Vung Tau Province.

c. A monthly rate of 690,000 VND applicable to companies operating in areas within Region III, including:

- Provincial cities (except those mentioned in Region II);

- Remaining counties in Hanoi city;

- Bac Ninh City, Tu Son Town, Que Vo, Tien Du, and Yen Phong counties in Bac Ninh Province;

- Bac Giang City and Viet Yen, Yen Dung counties in Bac Giang Province;

- Hung Yen Town and My Hao, Van Lam, Van Giang, Yen My counties in Hung Yen Province;

- Hai Duong City and Cam Giang, Nam Sach, Chi Linh, Kim Thanh, Kinh Mon counties in Hai Duong Province;

- Vinh Yen City and Phuc Yen Town in Vinh Phuc Province;

- Remaining counties in Hai Phong city;

- Mong Cai City, Uong Bi, and Cam Pha towns in Quang Ninh Province;

- Da Lat City and Bao Loc Town in Lam Dong Province; Nha Trang City and Cam Ranh Town in Khanh Hoa Province;

- Trang Bang County in Tay Ninh Province;

- Remaining counties in Binh Duong Province; remaining counties in Dong Nai Province;

- Tan An Town and Duc Hoa, Ben Luc, Can Doc counties in Long An Province;

- Remaining districts and counties in Can Tho City;

- Ba Ria Town and Chau Duc, Long Dien, Dat Do, Xuyen Moc counties in Ba Ria-Vung Tau Province.

d. A monthly rate of 650,000 VND applicable to companies operating in areas within Region IV, including all remaining areas.

2. For companies with units or branches operating in areas with different minimum wage levels in regions, the unit or branch operating in a specific region shall apply the minimum wage level corresponding to that region.

3. Companies specified in points a and b, Section 1, Item I of this Circular shall apply the minimum wage level to calculate the unit price of wages according to Section 1, Article 3 of Decree No. 110/2008/NĐ-CP as follows:

a. Companies ensuring all conditions stipulated in Article 4 of Decree No. 206/2004/NĐ-CP dated December 14, 2004 of the Government and point b, Section 1, Item III of Circular No. 07/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids, and Social Affairs may apply a higher minimum wage level than the regional minimum wage level to calculate the unit price of wages, wherein the company may apply an additional adjustment coefficient (K) not exceeding 1.34 times the general minimum wage level._đcshall not exceed twice the general minimum wage level.

For companies meeting the conditions stipulated in Article 4 of Decree No. 206/2004/NĐ-CP and Point b, Clause 1, Section III of Circular No. 07/2005/TT-BLDTBXH and having planned profits higher than 5% or more compared to the actual profit of the immediately preceding year, they may apply an additional adjustment factor (K) not exceeding twice the general minimum wage level._đcIn addition to the provisions mentioned above, the company selects the minimum wage level to calculate the unit price of wages (this selection of the minimum wage level replaces the selection of the minimum wage level according to point b, Clause 2, Section III Circular No. 07/2005/TT-BLDTBXH) within the framework of the prescribed minimum wage levels as follows:

b. Based on the additional adjustment factor relative to the general minimum wage level (K) mentioned above, the company selects the minimum wage level for calculating the unit price of wages (the selection of this minimum wage level replaces the selection of the minimum wage level according to Point b, Clause 2, Section III of Circular No. 07/2005/TT-BLDTBXH) within the range of minimum wage levels prescribed as follows:_đcminregion

- The lowest selected minimum wage level equals the regional minimum wage level set by the Government (TLminvùng)._{- The highest selected minimum wage level: MW}In cases where the company has units or branches operating in regions with different regional minimum wage levels, the weighted average of the regional minimum wage levels and the number of workers of the company working in those regions shall be calculated.

5. The regional minimum wage level prescribed by the Government (MW_max = TL_{Maximum Downhill Gradient} - The highest selected minimum wage level: TL(1 + K)_đc), wherein:

+ TL_{Maximum Downhill Gradient}: General minimum wage level. + K_đc: Additional adjustment factor relative to the general minimum wage level according to Point a, Clause 3, Section II of this Circular, with:

< Kdc ≤ 1,34 or 2

Based on the range of minimum wage levels from TL_{- The highest selected minimum wage level: MW} to TL_max, the company can choose any minimum wage level within this range when fully satisfying the conditions stipulated in Point a, Clause 3, Section II of this Circular to calculate the unit price of wages.

4. Companies referred to in Point c, Clause 1, Section I of this Circular apply the lowest minimum wage level equal to the regional minimum wage level set by the Government to calculate the unit price of wages. If they meet the conditions stipulated in Clause 2, Article 4 of Decree No. 86/2007/NĐ-CP dated May 28, 2007 of the Government and Clause 2.1, Part A, Section III of Circular No. 15/2007/TT-BLDTBXH dated August 31, 2007 of the Ministry of Labor, Invalids, and Social Affairs, they may choose to apply a higher level than the regional minimum wage level set by the Government (with no maximum limit).

) is used to determine the wage fund of the company as follows:_{- The highest selected minimum wage level: MW}5. The regional minimum wage level set by the Government (TL) replaces the general minimum wage level (TL) used to determine the wage fund of the company as follows:_{Maximum Downhill Gradient}Example: According to the provision at point a, Clause 4, Section III Circular No. 07/2005/TT-BLDTBXH: "The wage fund under the system (W

a. Determine the wage fund under the system (V), the wage fund implemented according to the unit price of wages as stipulated in Point a, Clause 4, Section III of Circular No. 07/2005/TT-BLDTBXH dated January 5, 2005; Point a, Clause 2.4, Part A, Section III of Circular No. 15/2007/TT-BLDTBXH dated August 31, 2007 of the Ministry of Labor, Invalids, and Social Affairs._cđExample: According to Point a, Clause 4, Section III of Circular No. 07/2005/TT-BLDTBXH: "The wage fund under the system (V) is determined by multiplying the number of quota workers by the average job grade salary coefficient, the average salary allowance coefficient, and the general minimum wage level," it is now adjusted as follows: "The wage fund under the system (V) is determined by multiplying the number of quota workers by the average job grade salary coefficient, the average salary allowance coefficient, and the regional minimum wage level set by the Government."

), determined by multiplying the number of workers based on staffing norms with the average salary grade coefficient, the average allowance coefficient, and the regional minimum wage level prescribed by the Government."_cđb. Determine the planned wage fund and the wage fund under the system for members of the Board of Directors, members of the Board of Members (or Chairman of the Company), General Director, Director of the company without profit or loss as stipulated in Point b, Clause 1, Point b, d, đ, Clause 2, Section III of Circular No. 08/2005/TT-BLDTBXH dated January 5, 2005 and Point b, Clause 2.1, Point b, d, đ, Clause 2.2, Part B, Section III of Circular No. 15/2007/TT-BLDTBXH dated August 31, 2007 of the Ministry of Labor, Invalids, and Social Affairs._cđ6. Based on the regional minimum wage level prescribed in Clause 1, Section II of this Circular, the company reviews, adjusts, and supplements its wage payment regulations to ensure that the wages paid to workers are not lower than the regional minimum wage level prescribed by the Government.

6. Based on the regional minimum wage level prescribed in Clause 1, Section II of this Circular, the company reviews, adjusts, and supplements the wage payment regulations to ensure that the wages paid to employees are not lower than the regional minimum wage level set by the Government.

2. The general minimum wage level prescribed in Article 1 of Decree No. 166/2007/NĐ-CP dated November 16, 2007 of the Government serves as the basis for implementing the following systems for employees working in the companies specified in Section I of this Circular; when the Government issues new regulations on the general minimum wage level, it will be calculated according to the new regulations of the Government;

III. EFFECTIVE DATE OF IMPLEMENTATION

1. This Circular takes effect from January 1, 2009.

Repeal Circular No. 29/2007/TT-BLDTBXH dated December 5, 2007 guiding the implementation of the general minimum wage level and the regional minimum wage level for state-owned enterprises and limited liability companies wholly owned by the State.

The general minimum wage prescribed in Article 1 of Decree No. 166/2007/NĐ-CP dated November 16, 2007, of the Government shall be used as the basis for implementing the following benefits for subjects working in companies specified in Section I of this Circular. When the Government issues new regulations on the general minimum wage, it shall be calculated according to the new provisions of the Government.

2. The general minimum wage level stipulated in Article 1 of Decree No. 166/2007/NĐ-CP dated November 16, 2007 of the Government serves as the basis for implementing the following systems for individuals working in companies specified in Section I of this Circular, when the Government issues new regulations on the general minimum wage level, it will be calculated based on the new regulations of the Government;

a. Calculate the wage, wage allowances in the wage scale, wage table, and wage allowances stipulated in Decree No. 205/2004/NĐ-CP, Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government as the basis for contributions and benefits under social insurance, health insurance; wage during leave, holiday, annual leave, and other benefits as prescribed by labor laws.

b. Calculate unemployment assistance for time worked in the public sector from January 1, 2009 onwards and assistance for job search for redundant workers who terminate their labor contracts and receive unemployment assistance as stipulated in Clause 4, Article 3 and Article 4 of Decree No. 110/2007/NĐ-CP dated June 26, 2007 of the Government on policies for redundant workers due to restructuring of state-owned enterprises. When implementing these assistance items, additional columns corresponding to actual time worked in the public sector and unemployment assistance should be added to Table 9, Table 10 issued together with Circular No. 18/2007/TT-BLDTBXH dated September 10, 2007 of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of some provisions of Decree No. 110/2007/NĐ-CP dated June 26, 2007 of the Government on policies for redundant workers due to restructuring of state-owned enterprises.

3. The funds for implementing the minimum wage level prescribed in this Circular shall be guaranteed by the company and accounted for in the cost of production or business expenses.

4. The Ministries, ministerial-level agencies, governmental agencies, People's Committees of provinces and centrally governed cities, Chairmen of the Board of Directors, Chairmen of the Board of Members, or Chairmen of state-owned enterprises under the State Economic Group and State Corporation have the responsibility to direct, urge, and inspect companies to comply with the provisions of this Circular. In the course of implementation, if there are difficulties, it is recommended that the Ministries, ministerial-level agencies, governmental agencies, People's Committees of provinces and centrally governed cities, and companies report to the Ministry of Labor, Invalids and Social Affairs for consideration and resolution.

In the course of implementation, if there are difficulties, it is recommended that the Ministries, ministerial-level agencies, governmental agencies, People's Committees of provinces and centrally governed cities, and companies report to the Ministry of Labor, Invalids and Social Affairs for consideration and resolution./.