Circular No. 36/2009/TT-BLDTBXH guides the implementation of the minimum wage for enterprises, cooperatives, associations of cooperatives, cooperative groups, farms, households, individuals, and other organizations in Vietnam that hire labor.

CIRCULAR

Guidelines for implementing the minimum wage level for enterprises,

cooperatives, cooperative unions, production cooperatives, farms, households, individuals

and and other organizations of Vietnam that hire laborers

__________________

Pursuant to Decree No. 97/2009/NĐ-CP dated October 30, 2009 stipulating the minimum wage levels for workers employed by companies, enterprises, cooperatives, production cooperatives, farms, households, individuals, and other organizations of Vietnam that hire laborers;

Pursuant to Decree No. 186/2007/NĐ-CP dated December 25, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor - War Invalids and Social Affairs;

After receiving opinions from the General Confederation of Labor of Vietnam, representatives of employers, and relevant ministries and sectors, the Ministry of Labor - Invalids and Social Affairs provides guidelines for implementing the minimum wage levels for enterprises, cooperatives, cooperative unions, production cooperatives, farms, households, individuals, and other organizations of Vietnam that hire laborers as follows:

Article 1. Scope of application

1. Companies and enterprises operating under the Enterprise Law, including limited liability companies, joint stock companies, partnerships, and private enterprises (excluding limited liability companies with 100% state-owned charter capital and enterprises with foreign investment).

2. Cooperatives, cooperative unions, production cooperatives, farms, households, individuals, and other organizations of Vietnam that hire laborers under labor contracts (excluding foreign agencies, organizations, and foreign individuals in Vietnam).

The companies, enterprises, organizations, and individuals specified in Article 1 of this Circular shall hereinafter be collectively referred to as enterprises.

Article 2. Applicability

1. Workers employed under labor contracts as prescribed 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 on labor contracts.

2. Managers earning salaries within enterprises.

Article 3. Implementation of the minimum wage level

1. The minimum wage level is used to pay wages to workers performing the simplest work under normal working conditions in enterprises starting from January 1, 2010, according to the regions defined in Article 2 of Decree No. 97/2009/NĐ-CP as follows:

a) A monthly rate of 980,000 VND applicable to enterprises operating in Region I, which includes:

- Districts in Hanoi City;

- Districts in Ho Chi Minh City.

b) A monthly rate of 880,000 VND applicable to enterprises operating in Region II, which includes:

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

- Districts in Ho Chi Minh City;

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

- The districts under the city of Da Nang;

- The districts under the city of Can Tho;

- Ha Long city in Quang Ninh province;

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

- Thu Dau Mot Town and Thu An, Dian An, Ben Cat, Tan Uyen Districts in Binh Duong Province;

- Vung Tau City, Ba Ria Town, and Tan Thanh District in Ba Ria-Vung Tau Province.

c) A monthly rate of 810,000 VND applicable to enterprises operating in Region III, which includes:

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

- Remaining counties in Hanoi city;

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

- Viet Yen and Yen Dung Districts in Bac Giang Province;

- Hoanh Bo District in Quang Ninh Province;

- Hung Yen Town and My Hao, Van Lan, Van Giang, Yen My Districts in Hung Yen Province;

- Cam Giang, Nam Sach, Chi Linh, Kim Thanh, Kinh Mon, Gia Loc, Binh Giang, Tuc Ky Districts in Hai Duong Province;

- Phuc Yen Town and Binh Xuyen District in Vinh Phuc Province;

- Remaining counties in Hai Phong city;

- Uong Bi and Cam Pha Towns in Quang Ninh Province;

- Dien Ban and Dai Loc Districts in Quang Nam Province;

- Bao Loc Town in Lam Dong Province;

- Cam Ranh Town in Khanh Hoa Province;

- Trang Bang District in Tay Ninh Province;

- Dong Xoei Town and Chon Than, Dong Phu Districts in Binh Phuoc Province;

- Remaining districts in Binh Duong Province;

- The remaining districts in the province of Dong Nai;

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

- The districts under the city of Can Tho;

- Chu Duc, Long Dien, Dat Doc, Xuyen Moc Districts in Ba Ria-Vung Tau Province.

d) A monthly rate of 730,000 VND applicable to enterprises operating in Region IV, which includes all remaining areas.

2. Enterprises with branches or subsidiaries operating in different areas with different minimum wage levels shall apply the minimum wage level corresponding to the area where they operate.

3. The lowest wage paid to skilled workers (including those trained by the enterprise itself) must be at least 7% higher than the minimum wage level prescribed in Clause 1, Article 3 of this Circular. Skilled workers include:

- Those who have completed vocational training and obtained vocational certificates, vocational diplomas, or vocational secondary school diplomas as prescribed in Decree No. 90/CP dated November 24, 1993 on the structure of the national education system, educational and training qualifications;

- Those who have completed vocational training and obtained vocational certificates or vocational diplomas as prescribed in the Education Law 1998 and the Education Law 2005;

- Those who have completed vocational training and obtained certificates from regular vocational programs, primary vocational certificates, secondary vocational diplomas, or completed vocational training programs as prescribed in the Vocational Training Law;

- Those who have obtained vocational certificates issued by foreign countries;

- Those who perform jobs requiring vocational training and have been trained by the enterprise or self-trained and recognized by the enterprise as meeting job requirements.

4. Enterprises are encouraged to apply higher minimum wage levels than those prescribed in this Circular to pay workers based on their productivity, business performance, and market wage rates.

5. The minimum wage level prescribed in this Circular shall be used as the basis for calculating wage levels in the wage scale, salary table, salary allowances, and wages stipulated in labor contracts, and other regulations under labor laws for enterprises that independently establish their own wage scales, salary tables, and salary allowances in accordance with Decree No. 114/2002/NĐ-CP dated December 31, 2002 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on salaries, Circular No. 13/2003/TT-BLDTBXH dated May 30, 2003, and Circular No. 28/2007/TT-BLDTBXH dated December 5, 2007 of the Ministry of Labor, War Invalids, and Social Affairs.

For joint-stock companies and limited liability companies with two or more members that have been converted from state-owned enterprises currently applying the wage scale, salary table, and salary allowance system prescribed by the State for state-owned enterprises under Decrees No. 205/2004/NĐ-CP and No. 204/2004/NĐ-CP dated December 14, 2004 of the Government, they must apply a minimum wage level not lower than that prescribed in this Circular to pay wages to workers.

6. When implementing the provisions of this Circular, enterprises may not eliminate or reduce the overtime pay, night shift pay, pay or allowances for work in hazardous conditions, or the supplementary benefits in kind for positions in hazardous occupations, and other provisions as stipulated by labor laws.

Any allowances, subsidies, or bonuses established by the enterprise shall be implemented according to the agreement in the labor contract or collective labor agreement, or in the enterprise's regulations as provided for by labor laws.

7. For wage levels agreed upon in labor contracts or in the wage scales established by enterprises in accordance with Article 57 of the Labor Code and Decree No. 114/2002/NĐ-CP dated December 31, 2002 of the Government, the specific adjustment level shall be agreed upon by the employer and employee based on the prevailing market wage rate, cost of living, and must ensure a reasonable relationship between newly hired employees and those with seniority at the enterprise.

Article 4. Effectiveness

1. This Circular takes effect from January 1, 2010.

Abolish Circular No. 24/2008/TT-BLDTBXH dated October 20, 2008 guiding the implementation of the minimum wage level for enterprises, cooperatives, cooperative unions, production cooperatives, households, individuals, and other organizations in Vietnam that hire labor.

2. The costs for implementing the minimum wage level prescribed in this Circular shall be accounted for in the cost of production or business expenses.

3. Ministries, ministerial-level agencies, agencies under the Government, Provincial People's Committees, and Municipal People's Committees directly under the Central Government shall be responsible for directing, urging, and inspecting enterprises to comply strictly with the provisions of this Circular.

During the implementation process, if there are any difficulties, please report to the Ministry of Labor, War Invalids, and Social Affairs for timely guidance and supplementation./.