Circular No. 29/2007/TT-BLDTBXH guiding the implementation of the national minimum wage and regional minimum wages for state-owned enterprises and joint-stock companies with 100% state ownership.

CIRCULAR

Guidelines for implementing the general minimum wage and regional minimum wage levels for state-owned enterprises and joint-stock companies with 100% state capital.

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Pursuant to Clause 1, Article 6 of Decree No. 166/2007/NĐ-CP dated November 16, 2007, issued by the Government on the general minimum wage level, and Decree No. 167/2007/NĐ-CP dated November 16, 2007, issued by the Government on the regional minimum wage level for workers employed by companies, enterprises, cooperatives, cooperative groups, farms, households, individuals, and other organizations in Vietnam that hire labor, the Ministry of Labor - Invalids and Social Affairs provides guidelines for implementing the general minimum wage and regional minimum wage levels for state-owned enterprises and joint-stock companies with 100% state capital as follows:

I. SCOPE OF REGULATION AND APPLICABLE ENTITIES.

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 that are state-owned enterprises within economic groups established or approved for establishment by the Prime Minister and assigned to the Ministers, Heads of Ministries equivalent to ministries, Heads of government agencies, Chairmen of provincial People's Committees, and municipal People's Committees directly under the central government to establish;

- Parent companies that are state-owned enterprises within holding companies or companies operating under the parent-subsidiary model;

- Holding companies and independent subsidiaries with 100% state capital belonging to economic groups during the period before conversion and re-registration as prescribed in Decree No. 139/2007/NĐ-CP dated September 5, 2007, issued by the Government detailing the implementation of certain provisions of the Enterprise Law;

- Independent subsidiaries with 100% state capital belonging to holding companies established by the state's investment decision.

b) The Vietnam Deposit Insurance Corporation, the Vietnam Development Bank, the Project Management Board for Investment and Construction, and other state organizations applying the salary system similar to state-owned enterprises.

c) Joint-stock companies with 100% state capital established, managed, and operated under the Enterprise Law.

The companies and organizations specified in points a, b, and c, Section 1, Part I of this Circular shall be collectively referred to 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 as stipulated in Decree No. 44/2003/NĐ-CP dated May 9, 2003, issued by 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), Inspectors, General Managers, Directors, Deputy General Managers, Deputy Directors, Chief Accountants (excluding General Managers, Directors, Deputy General Managers, Deputy Directors, and Chief Accountants working under contracts).

II. IMPLEMENTATION OF THE GENERAL MINIMUM WAGE.

1. The general minimum wage implemented from January 1, 2008, as stipulated in Article 1 of Decree No. 166/2007/NĐ-CP is 540,000 VND/month.

2. Companies base the general minimum wage as stated above and the salary coefficients and allowances prescribed in Decree No. 205/2004/NĐ-CP and Decree No. 204/2004/NĐ-CP dated December 14, 2004, issued by the Government to calculate salaries and allowances as the basis for contributions and benefits under social insurance, health insurance; wages during work stoppages; holidays, annual leave, and other benefits according to labor laws.

The calculation of salaries and allowances is carried out as follows: multiply the salary grade coefficient based on job title and position; the professional and vocational salary coefficient; the position salary coefficient assigned, allowance, and differential retention coefficient (if applicable) by the general minimum wage of 540,000 VND/month.

Example 1: Mr. Nguyen Van A is classified at the Specialist Grade 5 with a coefficient of 3.58 and receives hazardous and dangerous work allowance at 0.2 and attraction allowance at 20% as stipulated in Decree No. 205/2004/NĐ-CP. The adjustment of Mr. A's salary and allowances is calculated as follows:

- Salary: 3.58 x 540,000 VND/month = 1,933,200 VND/month

- Hazardous and dangerous work allowance: 0.2 x 540,000 VND/month = 108,000 VND/month.

- Attraction allowance: 20% x (3.58 x 540,000 VND/month) = 386,640 VND/month

3. For surplus 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, issued by the Government on policies for surplus workers due to restructuring of state-owned enterprises, unemployment assistance for time worked in the public sector from January 1, 2008 onwards and job-seeking allowance will be calculated based on the general minimum wage of 540,000 VND/month. When implementing these allowances, additional columns corresponding to actual time worked in the public sector and calculating unemployment assistance should be added to Table 9 and Table 10 issued along with Circular No. 18/2007/TT-BLĐTBXH dated September 10, 2007, by the Ministry of Labor - Invalids and Social Affairs.

For surplus workers eligible for early retirement, additional assistance as stipulated in Point b, Clause 2, Article 3 of Decree No. 110/2007/NĐ-CP dated June 26, 2007, issued by the Government, from January 1, 2008 onwards will be calculated based on the minimum wage of 540,000 VND/month.

III. IMPLEMENTATION OF THE REGIONAL MINIMUM WAGE.

1. The regional minimum wage for paying wages to workers performing the simplest tasks under normal working conditions in companies implemented from January 1, 2008, as stipulated in Article 2 of Decree No. 167/2007/NĐ-CP is as follows;

a) 620,000 VND/month applied to companies operating in districts within Hanoi City and Ho Chi Minh City.

b) The rate of 580,000 VND/month shall apply to companies operating in the districts within Hanoi City, Ho Chi Minh City; the districts within Hai Phong City, Ha Long City in Quang Ninh Province; Bien Hoa City, Long Khanh Town, and the districts: Nhon Trach, Long Thanh, Vinh Cuu, and Trang Bom in Dong Nai Province; Thu Dau Mot Town, and the districts: Thu An, Di An, Ben Cat, and Tan Uyen in Binh Duong Province, Vung Tau City in Ba Ria-Vung Tau Province.

c) The rate of 540,000 VND/month shall apply to companies operating in the remaining areas.

2. For companies with units or branches operating in areas with different minimum wage zones, the unit or branch operating in a particular zone shall apply the minimum wage rate corresponding to that zone.

3. Companies mentioned in points a and b, Clause 1, Section I of this Circular shall apply the minimum wage zone rate to calculate the unit labor cost as stipulated in Clause 1, Article 2 of Decree No. 167/2007/ND-CP as follows:

a) Companies ensuring the conditions prescribed in Article 4 of Decree No. 206/2004/ND-CP dated December 14, 2004 of the Government and point b, Clause 1, Section III of Circular No. 07/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids, and Social Affairs shall be allowed to apply a higher minimum wage rate than the general minimum wage rate to calculate the unit labor cost, wherein the company may apply an adjustment factor (K) not exceeding 1.34 times the general minimum wage rate._đcshall not exceed 1.34 times the general minimum wage.

For companies ensuring all the conditions prescribed in Article 4 of Decree No. 206/2004/ND-CP and point b, Clause 1, Section III of Circular No. 07/2005/TT-BLDTBXH and having planned profits at least 5% higher than the actual profit of the previous year, they shall be allowed to apply an adjustment factor (K) not exceeding twice the general minimum wage rate._đcshall not exceed two times the general minimum wage.

b) Based on the adjustment factor (K) applied as above, the company shall select the minimum wage rate to calculate the unit labor cost (the provision for selecting the minimum wage rate replaces the provision for selecting the minimum wage rate under point b, Clause 2, Section III of Circular No. 07/2005/TT-BLDTBXH) within the range of minimum wage rates prescribed as follows:_đcas provided above, the company selects the minimum wage level to calculate the unit price of wages (this selection of the minimum wage level replaces the provision for selecting 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:

- The lowest selected minimum wage rate equals the minimum wage zone rate prescribed by the Government (TLminzone)._minregion).

In cases where the company has units or branches operating in areas with different minimum wage zones, the weighted average of the minimum wage zone rates and the number of workers in those areas shall be calculated.

- The highest selected minimum wage level: MW_{- The highest selected minimum wage rate: TLmax(1 + K)} = TL_{Maximum Downhill Gradient} : General minimum wage rate._đc), wherein:

+ TL_{Maximum Downhill Gradient}+ K: Adjustment factor exceeding the general minimum wage rate according to point a, Clause 3, Section I of this Circular, with:

or 2_đcBased on the range of minimum wage rates from TLminzone to TLmax(1 + K), the company may choose any minimum wage rate within this range when fulfilling all the conditions prescribed in point a, Clause 3, Section I of this Circular to calculate the unit labor cost.

or 2

Based on the framework of minimum wage levels from MW_minregion to MW_max, the company may choose any minimum wage level within this range when ensuring all conditions stipulated in point a, Clause 3, Section I of this Circular to calculate the unit price of wages.

4. Companies mentioned in point c, Clause 1, Section I of this Circular shall apply the lowest minimum wage rate equal to the minimum wage zone rate prescribed by the Government to calculate the unit labor cost. If they meet the conditions prescribed in Clause 2, Article 4 of Decree No. 86/2007/ND-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 shall be allowed to apply a higher minimum wage rate than the minimum wage zone rate prescribed by the Government (with no maximum limit).

5. The minimum wage zone rate prescribed by the Government (TLminzone) replaces the general minimum wage rate (TLmin) to determine the company's labor cost fund as follows:_minregionreplacing the general minimum wage (MW_min-) used to determine the company's wage fund as follows:

a) Determining the regulated labor cost fund (V), and the labor cost fund implemented according to the unit labor cost 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;_cđAccording to the provisions in point a, Clause 4, Section III of Circular No. 07/2005/TT-BLDTBXH: "The regulated labor cost fund (V) is determined by multiplying the number of quota workers by the average job grade salary coefficient, the average position allowance coefficient, and the general minimum wage rate" is now adjusted as follows: "the regulated labor cost fund (V) is determined by multiplying the number of quota workers by the average job grade salary coefficient, the average position allowance coefficient, and the minimum wage zone rate prescribed by the Government."

Example 2: According to the provisions at point a, Clause 4, Section III of Circular No. 07/2005/TT-BLDTBXH: "The wage fund under the system (V_cđ) is determined by multiplying the number of standard workers by the average salary grade coefficient, the average allowance coefficient, and the general minimum wage" is now adjusted as follows: "the wage fund under the system (V_cđ) is determined by multiplying the number of standard workers by the average salary grade coefficient, the average allowance coefficient, and the regional minimum wage as prescribed by the Government."

b) Determining the planned labor cost fund and the regulated labor cost fund of members of the Board of Directors, members of the Board of Members (or Chairman of the Company), General Director, and Company Director without profit or loss as stipulated in point b, Clause 1, point b, d, g, Clause 2, Section III of Circular No. 08/2005/TT-BLDTBXH dated January 5, 2005 and point b, Clause 2.1, point b, d, g, Clause 2.2, Part B, Section III of Circular No. 15/2007/TT-BLDTBXH of the Ministry of Labor, Invalids, and Social Affairs;

6. Based on the minimum wage zone rate prescribed in Clause 1, Section III of this Circular, companies shall review, adjust, and supplement their wage regulations to ensure that wages paid to employees are not lower than the minimum wage zone rate prescribed by the Government.

IV. EFFECTIVE DATE OF IMPLEMENTATION.

1. Heads of Ministries, agencies equivalent to ministries, agencies under the Government, People's Committees of provinces and centrally governed cities, Chairmen of the Board of Directors, Chairmen of the Board of Members, or Chairmen of companies of state-owned enterprise groups and state-owned corporations have the responsibility to direct, urge, and inspect companies to comply with the provisions of this Circular.

2. The funds for implementing the general minimum wage rate and the minimum wage zone rate prescribed in this Circular shall be guaranteed by the company and accounted for in production costs or business expenses.

3. When implementing the general minimum wage and the regional minimum wage stipulated in this Circular, the amount of money allocated for midday meals, calculated based on the number of working days under the company's regulations in accordance with Circular No. 15/1999/TT-BLDTBXH dated June 22, 1999 of the Ministry of Labor - Invalids and Social Affairs, shall not exceed 450,000 VND/month.  4. This Circular takes effect from January 1, 2008.

4. This Circular abolishes Circular No. 12/TT-BLDTBXH dated September 14, 2006 guiding the implementation of adjustments to wages and allowances pursuant to Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government.

In the course of implementation, if there are any difficulties, it is requested that the ministries, ministerial-level agencies, government-affiliated agencies, provincial people's committees, centrally governed city people's committees, and companies report to the Ministry of Labor - Invalids and Social Affairs for consideration and resolution./.

In the course of implementation, if there are any difficulties, it is recommended that the Ministries, ministerial-level agencies, central agencies under the Government; provincial People's Committees, municipal People's Committees directly under the Central Government, and companies report to the Ministry of Labor - Invalids and Social Affairs for consideration and resolution./.