Decree No. 90/2019/ND-CP on the minimum wage levels for workers under labor contracts

DECREE

REGULATING THE MINIMUM WAGE LEVELS FOR LABORERS WORKING UNDER LABOR CONTRACTS

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Pursuant to the Law on Government Organization dated June 19, 2015;

Based on the Labor Code dated June 18, 2012;

Pursuant to the Law on Enterprises dated November 26, 2014;

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

The Government promulgates this Decree regulating the minimum wage levels for laborers working under labor contracts.

Article 1. Scope of Regulation

This Decree regulates the application of minimum wage levels for laborers working under labor contracts as prescribed by the Labor Code.

Article 2. Applicability

1. Laborers working under labor contracts as prescribed by the Labor Code.

2. Enterprises established, managed, and operated according to the Law on Enterprises.

3. Cooperatives, cooperative federations, production cooperatives, farms, households, individuals, and other organizations of Vietnam that hire laborers under labor contracts.

4. Foreign agencies, organizations, and foreign individuals in Vietnam that hire laborers under labor contracts (except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise).

Enterprises, cooperatives, cooperative federations, production cooperatives, farms, agencies, organizations, and individuals specified in Clauses 2, 3, and 4 of this Article shall hereinafter be collectively referred to as enterprises.

Article 3. Minimum Wage Levels

1. The minimum wage levels applicable to laborers working at enterprises are as follows:

a) VND 4,420,000 per month, applicable to enterprises operating in areas within Region I.

b) VND 3,920,000 per month, applicable to enterprises operating in areas within Region II.

c) VND 3,430,000 per month, applicable to enterprises operating in areas within Region III.

d) VND 3,070,000 per month, applicable to enterprises operating in areas within Region IV.

2. The application of minimum wage levels by region is defined by administrative units at the district, county, town, and provincial city level. The list of areas applying minimum wage levels within Regions I, II, III, and IV is specified in the Appendix attached hereto.

Article 4. Principles for Applying Minimum Wage Levels by Region

1. Enterprises operating in which area shall apply the minimum wage level prescribed for that area. In cases where an enterprise has branches or subsidiaries operating in areas with different minimum wage levels, the branch or subsidiary operating in which area shall apply the minimum wage level prescribed for that area.

2. Enterprises operating in industrial zones or export processing zones located in areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage level.

3. Enterprises operating in areas where there have been changes in name or division shall temporarily apply the minimum wage level prescribed for the area before such changes until the Government issues new regulations.

4. Enterprises operating in newly established areas from one or more areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage level. In cases where enterprises operate in newly established provincial cities formed from one or more areas within Region IV, they shall apply the minimum wage level prescribed for the remaining provincial city as specified in Section 3 of the Appendix attached hereto.

Article 5. Application of the minimum wage level for regions

1. The minimum wage level for regions prescribed in Article 3 of this Decree is the lowest level serving as a basis for enterprises and employees to negotiate and pay wages, ensuring that the wage paid to employees working under normal working conditions, with sufficient regular working hours in a month and completing agreed labor quotas or tasks must ensure:

a) Not lower than the minimum wage level for regions for employees performing the simplest work;

b) At least 7% higher than the minimum wage level for regions for employees performing work requiring employees who have completed vocational training or vocational education as stipulated in Clause 2 of this Article.

2. Employees who have completed vocational training or vocational education include:

a) Those who have been issued a vocational certificate, a vocational degree, a vocational high school diploma, a vocational secondary diploma, a college diploma, a general university certificate, a bachelor's degree, a master's degree, or a doctorate degree according to Decree No. 90-CP dated November 24, 1993 of the Government on the structure of the national education system, the system of educational certificates and qualifications;

b) Those who have been issued a vocational high school diploma, a vocational training diploma, a college diploma, a university diploma, a master's degree, a doctorate degree, vocational education certificates and qualifications; university education certificates and qualifications, and continuing education certificates and qualifications according to the Education Law of 1998 and the Education Law of 2005;

c) Those who have been issued a certificate from a regular vocational training program, a初级工证书，中级工证书，高级技工学校毕业证书或已完成学徒合同规定的学习课程的人员，根据《职业教育法》的规定；

d) Those who have been issued a national vocational skills certificate according to the provisions of the Labor Law;

e) Those who have been issued vocational education certificates and qualifications for primary, intermediate, and advanced levels; regular vocational training programs and other vocational training programs according to the Vocational Education Law;

f) Those who have been issued a graduation diploma from higher education training according to the Higher Education Law;

g) Those who have been issued certificates and qualifications from foreign educational institutions;

h) Those who have been trained in vocational skills by enterprises or self-taught and have been tested and assigned to work requiring vocational training by enterprises.

3. When implementing the minimum wage level for regions prescribed in this Decree, enterprises shall not eliminate or reduce wage systems for overtime work, night work, work under harsh or hazardous conditions, or material allowances for heavy or hazardous job positions and other systems as prescribed by labor laws. Additional allowances, supplements, subsidies, and bonuses stipulated by enterprises shall be implemented according to agreements in employment contracts, collective labor agreements, or enterprise regulations.

Article 6. Effectiveness and Responsibility for Implementation

1. This Decree takes effect from January 1, 2020. Decree No. 157/2018/NĐ-CP dated November 16, 2018 of the Government on the minimum wage level for employees working under employment contracts shall cease to be effective from the date this Decree takes effect.

2. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees, and relevant agencies and enterprises are responsible for implementing this Decree./.