Decree No. 98/2009/ND-CP stipulates the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises, foreign agencies and organizations, international organizations, and foreign individuals in Vietnam.

DECREE

Prescribing the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises,

foreign agencies, organizations, and individuals from abroad in Vietnam

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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 Articles of the Labor Code dated April 2, 2002; Law Amending and Supplementing Certain Articles of the Labor Code dated 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. Prescribing the minimum wage levels applicable to workers performing the simplest tasks under normal working conditions for foreign-invested enterprises, foreign agencies, organizations, and individuals from abroad in Vietnam (hereinafter referred to as enterprises), to be implemented from January 1, 2010, as follows:

1. The level of VND 1,340,000 per month shall apply to enterprises operating in areas within Region I.

2. The level of VND 1,190,000 per month shall apply to enterprises operating in areas within Region II.

3. The level of VND 1,040,000 per month shall apply to enterprises operating in areas within Region III.

4. The level of VND 1,000,000 per month shall apply to enterprises operating in areas within Region IV.

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

Article 2.

1. The minimum wage levels prescribed in Article 1 of this Decree shall serve as the basis for calculating wage scales, salary tables, various types of salary allowances, the wages stipulated in labor contracts, and implementing other systems established and promulgated by enterprises in accordance with their authority as provided by labor laws.

2. The lowest wage paid to skilled workers (including those trained by the enterprise itself) must be at least 7% higher than the minimum wage levels prescribed in Article 1 of this Decree.

3. Enterprises are encouraged to implement minimum wage levels higher than those prescribed in Article 1 of this Decree.

4. Based on the minimum wage levels prescribed in Article 1 of this Decree, enterprises shall adjust the wages stipulated in labor contracts accordingly.

Article 3.

1. The minimum wage levels prescribed in Article 1 of this Decree shall be adjusted according to economic growth rates, cost-of-living indices, and labor supply-demand dynamics during each period.

2. The Ministry of Labor, Invalids, and Social Affairs, after consulting the Vietnam General Confederation of Labor, representatives of employers, and relevant ministries and sectors, shall submit to the Government proposals to adjust the minimum wage levels prescribed in Article 1 of this Decree.

Article 4.

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

2. Abolishing Decree No. 111/2008/NĐ-CP dated October 10, 2008 of the Government prescribing the minimum wage levels for Vietnamese workers employed by foreign-invested enterprises, foreign agencies, organizations, and individuals from abroad in Vietnam.

Article 5. 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.