Decision No. 708/1999/QĐ-BLĐTBXH On the minimum wage and salary for Vietnamese workers employed in foreign-invested enterprises

DECISION

On the minimum wage and salary for Vietnamese workers employed in foreign-invested enterprises Working in foreign-invested enterprises

THE MINISTER OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS

Pursuant to Decree No. 96/CP dated December 7, 1993 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids and Social Affairs;

Pursuant to Decree No. 197/CP dated December 31, 1994 of the Government detailing and guiding the implementation of certain Articles of the Labour Code on wages;

Pursuant to Decision No. 53/1999/QĐ-TTg dated March 26, 1999 of the Prime Minister on some measures to encourage foreign direct investment and the opinion of the Prime Minister in Document No. 619/CP-VX dated June 15, 1999 of the Office of the Government;

Based on the proposal of the Director of the Department of Wages and Remuneration.

DECISION:

Article 1. Now, we hereby stipulate the minimum wage for Vietnamese workers performing the simplest work (without training) under normal working conditions in foreign-invested enterprises as follows:

1. The minimum wage shall not be less than 626,000 VND/month, applicable to foreign-invested enterprises located in districts of Hanoi City and Ho Chi Minh City;

2. The minimum wage shall not be less than 556,000 VND/month, applicable to foreign-invested enterprises located in counties of Hanoi City and Ho Chi Minh City; districts of Hai Phong City, Bien Hoa City, and Vung Tau City;

3. The minimum wage shall not be less than 487,000 VND/month, applicable to foreign-invested enterprises located in counties, provinces, and cities other than those mentioned above;

4. For some foreign-invested enterprises located in difficult areas with poor infrastructure (outside the scope specified in Clauses 1 and 2 above), if it is necessary to apply a minimum wage lower than 487,000 VND/month down to 417,000 VND/month, then the Chairman of the People's Committee of the province or centrally-administered city shall consider and decide to implement within a specified period and report to the Ministry of Labour - Social Affairs and War Invalids for monitoring and consolidation.

Article 2. The Ministry of Labour - Social Affairs and War Invalids will adjust the minimum wage as prescribed in Article 1 above when the Consumer Price Index published by the General Statistics Office increases by 10% or more from the last adjustment of the minimum wage, after consulting the Vietnam General Confederation of Labour, the Ministry of Planning and Investment, and representatives of employers, and reporting to the Prime Minister.

Article 3. The minimum wages prescribed in Article 1 above shall not be used to pay salaries to skilled workers who have been trained (including workers trained by the enterprise itself).

Article 4. This Decision takes effect from July 1, 1999.

For Vietnamese workers employed in foreign-invested enterprises where the minimum wage and other wages stipulated in the labour contracts are in US dollars (USD), they shall now be converted to Vietnamese dong at the exchange rate of 13,910 VND/1 USD.

For foreign-invested enterprises that were granted Investment Licenses before the effective date of Decision No. 53/1999/QĐ-TTg dated March 26, 1999 of the Prime Minister, located in areas subject to changes in the minimum wage as prescribed in Article 1 above, the employer and the workers' union shall negotiate to apply a suitable minimum wage.

Article 5. Chairmen of Provincial People's Committees, centrally-administered city, the Director of the Department of Wages and Remuneration, and foreign-invested enterprises employing Vietnamese workers shall implement this Decision.