Decree No. 28/2010/ND-CP on the general 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 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; the Law Amending and Supplementing Article 73 of the Labor Code on April 2, 2007;

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, the Minister of Home Affairs, and the Minister of Finance,

DECREE:

Article 1. The general minimum wage prescribed in this Decree shall be implemented from May 1, 2010 at 730,000 VND/month.

Article 2. The general minimum wage prescribed in this Decree applies to:

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; non-state public service units established and operating in accordance with the law;

3. Companies established and managed and operated under the Law on State-Owned Enterprises;

4. Limited liability companies with one member wholly owned by the state, organized and operated under the Law on Enterprises;

Article 3. The general minimum wage prescribed in this Decree shall serve as the basis:

1. For calculating wage levels in the wage scale, wage rate, and wage allowances, and implementing certain other benefits as provided by law in the agencies, units, and organizations specified in Article 2 of this Decree.

2. For calculating assistance from May 1, 2010 onwards for surplus laborers pursuant to Decree No. 110/2007/NĐ-CP dated June 26, 2007 of the Government on policies for surplus workers due to restructuring state-owned enterprises.

3. For calculating 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 shall be guaranteed by the state budget from the following sources:

1. Saving 10% of regular expenses (excluding salaries and items of a salary nature) for each administrative agency and public service unit under ministries, central agencies, and provinces and centrally-administered cities.

2. For public service units with income, using at least 40% of retained earnings according to regulations. Specifically, public service units under the health sector shall use at least 35% of retained earnings (after deducting drug, blood, transfusion fluid, chemical, consumable, and replacement 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 budget shall ensure:

a) Supplementing funds to implement the general minimum wage in cases where ministries, central 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 their sources with an average of two-thirds of the general minimum wage for non-professional staff at commune, ward, and town levels, and village and neighborhood associations as determined in accordance with 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 the companies specified in Clauses 3 and 4 of Article 2 shall be guaranteed by the company and included 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 Labor, representatives of employers, and relevant ministries and sectors, shall submit to the Government for adjustment of the general minimum wage for each period; guide the implementation of the general minimum wage for the companies specified in Clauses 3 and 4 of Article 2 of this Decree; and guide the calculation of assistance as stipulated in Clause 2 of Article 3 of this Decree for surplus workers pursuant to 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 guide the implementation of the general minimum wage for agencies, units, and organizations specified in Clauses 1 and 2 of Article 2 of this Decree.

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

4. The Ministry of Finance, in coordination with relevant ministries and sectors, shall 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 and centrally-administered cities in cases 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 the results of implementation.

Article 7. Effectiveness

1. This Decree takes effect from May 10, 2010.

The provisions set forth in this Decree shall take effect from May 1, 2010.

2. Abolish Decree No. 33/2009/NĐ-CP dated April 6, 2009 of the Government prescribing the general minimum wage.

3. Replace Clause 1, Article 3 of Decree No. 97/2009/NĐ-CP dated October 30, 2009 of the Government prescribing the regional minimum wage for workers employed by companies, enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor as follows:

"1. Enterprises specified in Clauses 1 and 2 of Article 1 of this Decree shall apply the regional minimum wage prescribed in Article 2 of this Decree to calculate the unit price of wages."

For enterprises specified in Clause 1 of Article 1 of this Decree that ensure the conditions stipulated in Article 4 of Decree No. 206/2004/NĐ-CP dated December 14, 2004 of the Government on labor management, wages, and income in state-owned companies, they shall apply an adjustment factor not exceeding 1.1 times the general minimum wage; in cases where they meet the conditions stipulated in Article 4 of Decree No. 206/2004/NĐ-CP and achieve planned profits at least 5% higher than the realized profit of the immediately preceding year, they shall apply an adjustment factor not exceeding 1.7 times the general minimum wage to calculate the unit price of wages.

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.