Decree No. 97/2009/ND-CP stipulates the minimum wage levels for workers employed by companies, enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor.

DECREE

Specifies the minimum wage levels for workersworking at companies,

enterprises, cooperatives, production cooperatives, farms, households, Clause 1. Individuals awarded the Commendation Medal shall receive the Decision and Certificate of Recognition for the "Commendation Medal for the Development of Vietnam's Transport Industry" and be recorded in the traditional golden book of the Vietnam Transport Industry.

and other organizations in Vietnam that hire labor

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THE GOVERNMENT

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

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

Pursuant to Resolution No. 56/2006/NQ-QH11 dated June 29, 2006 of the National Assembly 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,

DECREE:

Article 1. Specifies the application of minimum wage levels for:

1. Companies established, managed, and operated under the State-Owned Enterprises Law.

2. Limited liability companies with 100% state-owned capital, organized and operated according to the Enterprise Law.

3. Enterprises established, managed, and operated under the Enterprise Law (excluding foreign-invested enterprises).

4. Cooperatives, cooperative federations, production cooperatives, farms, households, individuals, and other organizations in Vietnam that hire labor.

The companies, enterprises, organizations, and individuals specified in Clauses 1, 2, 3, and Clause 4 of this Article shall be collectively referred to as enterprises.

Article 2. The minimum wage level used to pay wages for the simplest work under normal working conditions in enterprises stipulated in Article 1 of this Decree shall be implemented from January 1, 2010, as follows:

1. A monthly rate of VND 980,000 applicable to enterprises operating in areas within Region I.

2. A monthly rate of VND 880,000 applicable to enterprises operating in areas within Region II.

3. A monthly rate of VND 810,000 applicable to enterprises operating in areas within Region III.

4. A monthly rate of VND 730,000 applicable to enterprises operating in areas within Region IV.

The list of areas in Regions I, II, III, and IV is attached as an appendix to this Decree.

Article 3.

1. Enterprises specified in Clauses 1 and 2 of Article 1 of this Decree shall apply the minimum wage levels stipulated in Article 2 of this Decree to calculate unit labor costs.

For enterprises specified in Clause 1 of Article 1 of this Decree, if they meet the conditions stipulated in Article 4 of Government Decree No. 206/2004/NĐ-CP dated December 14, 2004 on labor management, wage, and income in state-owned companies, they may apply an adjustment factor not exceeding 1.34 times the general minimum wage; in cases where they meet the conditions stipulated in Article 4 of Government Decree No. 206/2004/NĐ-CP and have planned profits higher than 5% compared to the previous year's actual profit, they may apply an adjustment factor not exceeding twice the general minimum wage stipulated in Government Decree No. 33/2009/NĐ-CP dated April 6, 2009 to calculate unit labor costs.

2. For enterprises specified in Clause 3 and Clause 4 of Article 1 of this Decree:

a. Apply the minimum wage levels stipulated in Article 2 of this Decree to determine wage scales, salary tables, various types of salary allowances, and the wage levels recorded in labor contracts, and implement other systems established and issued by the enterprise in accordance with the authority prescribed by labor laws;

b. The lowest salary paid to skilled workers (including those trained by the enterprise itself) must be at least 7% higher than the minimum wage levels stipulated in Article 2 of this Decree;

c. Encourage enterprises to implement higher minimum wages than those stipulated in Article 2 of this Decree;

d. Based on the minimum wage levels stipulated in Article 2 of this Decree, enterprises adjust salaries in labor contracts accordingly.

Article 4.

1. The minimum wage levels stipulated in Article 2 of this Decree will be adjusted based on economic growth rates, living cost indices, and labor supply-demand ratios during each period.

2. The Ministry of Labor, Invalids, and Social Affairs, after consulting the Vietnam General Confederation of Trade Unions, representatives of employers, and relevant ministries and sectors, shall submit to the Government for adjustments to the minimum wage levels stipulated in Article 2 of this Decree.

Article 5.

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

2. Abolish Government Decree No. 110/2008/NĐ-CP dated October 10, 2008 on the minimum wage levels for workers employed by companies, enterprises, cooperatives, production cooperatives, farms, households, individuals, and other organizations in Vietnam that hire labor.

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

Article 6. 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.