Decree No. 31/2012/NĐ-CP on the general minimum wage

DECREE

Regulations on the general minimum wage

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

Based on 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 Article 73 of the Labor Code dated April 2, 2007;

Based on Resolution No. 14/2011/QH13 dated November 10, 2011 of the National Assembly on the state budget for 2012;

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

The Government promulgates this Decree stipulating the general minimum wage.

Article 1. General Minimum Wage

The general minimum wage shall be implemented from May 1, 2012 at 1,050,000 VND/month.

Article 2. Scope of Application

The general minimum wage prescribed in this Decree applies to officials, civil servants, public employees, members of the armed forces, and workers employed in agencies, units, and organizations:

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

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

3. Limited liability companies wholly owned by the State organized and operated according to the Enterprise Law.

Article 3. Application of the General Minimum Wage

The general minimum wage prescribed in this Decree serves as the basis for:

1. Calculating various wage levels in the wage scale, salary table, salary allowances, and implementing certain other benefits as provided by law for officials, civil servants, public employees, members of the armed forces, and workers employed in agencies, units, and organizations specified in Article 2 of this Decree.

2. Calculating assistance from May 1, 2012 onwards for surplus labor under Decree No. 91/2010/NĐ-CP dated August 20, 2011 of the Government on policies for surplus workers when restructuring limited liability companies wholly owned by the State.

3. Calculating deductions and benefits based on the general minimum wage.

Article 4. Funding for Implementation of the General Minimum Wage

1. Funding for implementation for those covered by the state budget is secured from the following sources:

a) Using 10% of the savings from regular expenditures (excluding salaries and salary-like payments) according to the approved budget for administrative agencies and public service units in 2012.

b) Using at least 40% of the retained revenue according to the regulations in 2012 for administrative agencies and public service units with income. For public service units in the health sector, using at least 35% of the retained revenue (after deducting drug costs, blood, transfusion fluids, chemicals, consumable materials, and replacement materials).

c) Using 50% of the increase in local government revenue, excluding land use fee revenue (including 50% of the actual increase compared to the 2011 revenue forecast assigned by the Prime Minister and 50% of the increase in the 2012 revenue forecast compared to the 2011 revenue forecast assigned by the Prime Minister).

d) Remaining funds from the reform of salary system up to the end of 2011 for administrative agencies, public service units, and local government budgets.

đ) The central budget supplements funding to implement the general minimum wage in cases where ministries, central agencies, and provinces and centrally-administered cities have fully complied with the provisions of Points a, b, c, and d of Clause 1 of this Article but still lack sufficient funds.

e) The central budget supports 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 committee staff as defined in Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government.

2. Funding for the implementation of the general minimum wage for workers in companies specified in Clause 3 of Article 2 is guaranteed by the company and included in production and business costs.

Article 5. Responsibilities for guiding implementation

1. The Ministry of Labor - Invalids and Social Affairs shall, after soliciting opinions from the Vietnam General Confederation of Labor, representatives of employers, and relevant ministries and sectors, guide the implementation of the general minimum wage for state-owned single-member limited liability companies; guide the calculation of allowances as stipulated in Clause 2, Article 3 of this Decree for surplus workers as defined in Decree No. 91/2010/NĐ-CP dated August 20, 2010.

2. The Ministry of Home Affairs shall take the lead and coordinate with the Ministry of Finance and relevant ministries and sectors to guide the implementation of the general minimum wage for agencies, units, and organizations specified in Clauses 1 and 2, Article 2 of this Decree.

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

4. The Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors to be responsible for:

a) Guiding the calculation and balancing of financial resources to implement the general minimum wage as stipulated in Clause 1, Article 4 of this Decree.

b) Reviewing and supplementing financial resources to implement the general minimum wage for ministries, central agencies, and provinces and centrally-administered cities as specified in Point d, Clause 1, Article 4 of this Decree, ensuring targeted supplementary sources for difficult localities as provided in Point e, Clause 1, Article 4 of this Decree, and reporting the results of implementation to the Prime Minister.

Article 6. Effectiveness

1. This Decree takes effect from June 1, 2012.

The provisions set forth in this Decree shall apply from May 1, 2012.

2. Decree No. 22/2011/NĐ-CP dated April 4, 2011 of the Government on the general minimum wage is hereby repealed.

Article 7. Implementation Organization

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