Decree No. 33/2009/NĐ-CP on the minimum wage

DECREE

Specifies the general minimum wage level

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THE GOVERNMENT

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

Pursuant to the Labor Code dated June 23, 1994; Law Amending and Supplementing Certain Provisions of the Labor Code dated April 2, 2002; Law Amending and Supplementing Certain Provisions of the Labor Code dated June 29, 2006; Law Amending and Supplementing Article 73 of the Labor Code dated April 2, 2007;

Pursuant to Resolution No. 56/2006/NQ-QH11 dated June 29, 2006 of the National Assembly of the Eleventh Session 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 Interior, and the Minister of Finance,

DECREE:

Article 1. The general minimum wage level shall be implemented from May 1, 2009 at 650,000 VND per month.

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

1) State agencies, armed forces, political organizations, and political-social organizations;

2) State-owned public institutions; public institutions of political organizations and political-social organizations; non-state public institutions 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 according to the Law on Enterprises;

Article 3. The general minimum wage level prescribed in this Decree serves as the basis:

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

2. For calculating assistance from May 1, 2009 onwards for surplus laborers pursuant to Government Decree No. 110/2007/NĐ-CP dated June 26, 2007 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 level prescribed in this Decree for the relevant subjects shall be guaranteed from the state budget through the following sources:

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

2. For public institutions with income, using a minimum of 40% of retained revenue according to regulations. Specifically, public health institutions use a minimum of 35% of retained revenue (after deducting drug, blood, transfusion fluid, chemical, consumable, and replacement material costs).

3. Using a minimum of 40% of retained revenue from administrative agencies with income.

4. Using 50% of increased local government revenue.

5. The central budget will ensure:

a) Supplementing funds to implement the general minimum wage level when 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 an average of one-third of the general minimum wage for part-time village cadres, townships, and neighborhood associations as determined in accordance with Government Decree No. 121/2003/NĐ-CP dated October 21, 2003.

Article 5. The funding for implementing the general minimum wage level for workers in 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 related ministries, shall submit to the Government for adjustment of the general minimum wage level for each period; guide the implementation of the general minimum wage level for companies specified in Clauses 3 and 4 of Article 2 of this Decree; and guide the calculation of assistance for surplus workers as stipulated in Clause 2 of Article 3 of this Decree pursuant to Government Decree No. 110/2007/NĐ-CP dated June 26, 2007.

2. The Ministry of Interior, in coordination with the Ministry of Finance and related ministries, shall guide the implementation of the general minimum wage level 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 Interior and the Ministry of Finance, shall guide the implementation of the general minimum wage level for entities under their management.

4. The Ministry of Finance, in coordination with related ministries, shall be responsible for:

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

b) Reviewing and supplementing funding for implementing the general minimum wage level for ministries, central agencies, and provinces and centrally-administered cities as stipulated in Point a, Clause 5, Article 4 of this Decree, and ensuring targeted supplementary funding for difficult regions as stipulated in Point b, Clause 5, Article 4 of this Decree, and reporting the results of implementation to the Prime Minister.

Article 7. This Decree takes effect 45 days from the date of issuance.

Wages in the wage scale, pay grade, and wage allowances, and assistance for the subjects specified in Article 2 of this Decree shall be calculated based on the general minimum wage level of 650,000 VND per month from May 1, 2009.

Repeals Government Decree No. 166/2007/NĐ-CP dated November 16, 2007 on the general minimum wage level

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.