Decree No. 70/2011/NĐ-CP stipulates the minimum wage levels for workers employed by companies, enterprises, cooperatives, production cooperatives, households, individuals, and organizations that hire labor.

DECREE

Prescribing the minimum wage levels for workers employed in companies, enterprises, cooperatives, production cooperatives, farms, households, and individuals

 enterprises, cooperatives, production cooperatives, farms, households, individuals

and other agencies and organizations that hire labor

_______________________ 

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;

Pursuant to the Enterprise Law dated November 29, 2005;

Considering the proposal of the Minister of Labor, Invalids, and Social Affairs,

DECREE:

Article 1. Scope and Applicability

This Decree stipulates the minimum wage levels applicable to workers employed in companies, enterprises, cooperatives, farms, households, individuals, and agencies and organizations that hire labor, including:

1. Enterprises established, managed, and operated under the Enterprise Law (including foreign-invested enterprises in Vietnam).

2. Cooperatives, cooperative unions, production cooperatives, farms, households, individuals and other Vietnamese organizations that hire labor.

3. Agencies and organizations of foreign countries, international organizations, and individual foreigners in Vietnam that hire labor (except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise).

Companies, enterprises, agencies, and organizations specified in Clauses 1, 2, and 3 of this Article shall be collectively referred to as enterprises.

Article 2. Regional Minimum Wage Level

The minimum wage levels prescribed in this Decree shall apply from October 1, 2011 to December 31, 2012 as follows:

1. A monthly rate of 2,000,000 VND shall apply to enterprises operating in areas within Region I.

2. A monthly rate of 1,780,000 VND shall apply to enterprises operating in areas within Region II.

3. A monthly rate of 1,550,000 VND shall apply to enterprises operating in areas within Region III.

4. A monthly rate of 1,400,000 VND shall apply to enterprises operating in areas within Region IV. The areas applying the minimum wage levels are specified in the Appendix attached hereto.

Article 3. Application of the minimum wage level

The minimum wage levels prescribed in Article 2 of this Decree shall be the lowest wage level serving as the basis for enterprises and workers to negotiate wages payable to workers.

The lowest wage payable to skilled workers (including those trained by enterprises themselves) must be at least 7% higher than the minimum wage levels prescribed in Article 2 of this Decree.

The minimum wage levels prescribed in Article 2 of this Decree shall serve as the basis for establishing wage scales, salary supplements, calculating wages stipulated in labor contracts, and implementing other systems established and promulgated by enterprises in accordance with their authority under labor laws.

Based on the minimum wage levels prescribed in Article 2 of this Decree, enterprises shall adjust their wage scales and wages stipulated in labor contracts to comply with agreements and provisions of labor laws.

Enterprises are encouraged to pay wages to workers higher than the minimum wage levels prescribed in Article 2 of this Decree.

Article 4. Organization of Implementation

1. The Ministry of Labor, Invalids, and Social Affairs is responsible for guiding the implementation of this Decree.

2. The Ministry of Labor - Invalids and Social Affairs shall take the lead and coordinate with the Vietnam General Confederation of Labor, the Vietnam Chamber of Commerce and Industry, relevant ministries and agencies, and provincial and municipal people's committees to disseminate and publicize the minimum wage levels prescribed in this Decree to workers and employers, monitor and supervise compliance, and report to the Government for consideration and decision on adjusting the minimum wage levels according to regulations.

Article 5. Effective Date

This Decree shall take effect from October 5, 2011.

Abolish Decree No. 108/2010/NĐ-CP dated October 29, 2010 of the Government prescribing the minimum wage levels for workers employed in companies, enterprises, cooperatives, production cooperatives, farms, households, individuals, and other organizations in Vietnam that hire labor; Decree No. 107/2010/NĐ-CP dated October 29, 2010 of the Government prescribing the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises, agencies, and organizations of foreign countries, international organizations, and individual foreigners in Vietnam; Clause 3, Article 7 of Decree No. 22/2011/NĐ-CP dated April 4, 2011 of the Government prescribing the national minimum wage.

Encourage enterprises to organize midday meals for workers. The amount for midday meals shall be agreed upon by enterprises, the grassroots trade union committee, or the provisional trade union committee and workers to ensure the quality of midday meals for workers.

State-owned joint stock companies wholly owned by the State, parent companies of state economic groups during the period before they have established wage scales and tables in accordance with Decree No. 101/2009/NĐ-CP dated November 5, 2009 of the Government, state-owned companies not yet converted into joint stock companies or listed companies, and organizations and units currently applying wage systems similar to state-owned companies may choose a higher minimum wage than the national minimum wage prescribed by the Government to determine the unit price of wages for workers and the wage fund for managerial staff from 2012 when meeting the conditions stipulated in Decree No. 206/2004/NĐ-CP dated December 14, 2004; Decree No. 207/2004/NĐ-CP dated December 14, 2004; Decree No. 86/2007/NĐ-CP dated May 28, 2007; Decree No. 141/2007/NĐ-CP dated September 5, 2007 of the Government, while ensuring that the increase in wages for managerial staff does not exceed the increase in wages for workers. In cases where the conditions prescribed by the Government are not met and the wages calculated under the system for workers are lower than the minimum wage levels prescribed in Article 2 of this Decree, the wages shall be calculated based on the minimum wage levels prescribed in Article 2 of this Decree.

Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial and municipal people's committees, and relevant agencies and enterprises are responsible for implementing this Decree./.