Circular No. 10/2012/TT-BLDTBXH dated April 26, 2012 of the Ministry of Labor, War Invalids and Social Affairs on guiding the application of the general minimum wage to state-owned one-member limited liability companies

CIRCULAR

ON GUIDING THE APPLICATION OF THE GENERAL MINIMUM WAGE TO STATE-OWNED ONE-MEMBER LIMITED LIABILITY COMPANIES

Pursuant to the Government s Decree No. 31/2012/ND-CP of April 12, 2012 on the general minimum wage;

Pursuant to the Government s Decree No. 186/2007/ND-CP of December 25, 2007 on defining the functions, tasks, powers and organizational structure of the Ministry of Labor, War Invalids and Social Affairs;

At the proposal of the Director of the Department of Labor and Wages;

Minister of Labor, War Invalids and Social Affairs promulgates the Circular on guiding the application of the general minimum wage to State-owned one-member limited liability companies,

Article 1.Scope and subjects of application

Contractual workers; members of the Member Council (or the company president), controllers, the General Director (Director), Deputy General Director (Deputy Director), Chief accountant working in State-owned one-member limited liability companies including:

1. Independent one-member limited liability companies belonging to Ministries and People’s Committees of central-affiliated cities and provinces.

2. One-member limited liability companies being parent companies of State Economic corporations, parent companies under the parent company – subsidiary company model of which the operation charters are approved, transformed, established by the Prime Minister, Ministers, the Presidents of People’s Committees of central-affiliated cities and provinces.

3. One-member limited liability companies are owned by the parent companies prescribed in Clause 2 this Article.

One-member limited liability companies being owned by the parent companies prescribed in Clause 1, Clause 2 and 3 stated above are abbreviated as “companies”.

Article 2.Applying the general minimum wage to calculate wages

The general minimum wage being 1,050,000 VND/month is applied to calculate wages and benefits from May 01, 2012 as follows:

1. Based on the general minimum wage and the wage coefficient in the wage scales, payrolls and benefits prescribed in the Government s Decree No. 205/2004/ND-CP and the Decree No. 204/2004/ND-CP of December 14, 2004, the company shall recalculate the wage and benefits for used as a basis for paying and benefiting social insurance, unemployment insurance, medical insurance, severance pay, holiday pay, annual days off and other regulations as prescribed by labor law.

2. The calculation of wages in the wage scales, payrolls and benefits are implemented as follows: the hierarchical wage coefficient by occupation, jobs; the wage coefficient by profession; the wage by position, benefits, the reserved difference coefficient (if any) multiplied by the general minimum wage of 1,050,000 VND/month.

Article 3.Applying the general minimum wage to calculate benefits

The company shall apply the general minimum wage being 1,050,000 VND/month to calculate benefits regarding redundant workers under the Government s Decree No. 91/2010/ND-CP of August 20, 2010 defining the policy on redundant workers when reorganizing State-owned one-member limited liability companies as follows:

1. Calculate the severance, additional support the time for seeking jobs within the State sector and job-seeking grants from May 01, 2012 and onwards regarding redundant workers terminated their labor contracts, received unemployment benefits, additional benefits as prescribed in Clause 4 Article 3 and Article 4 of the Government s Decree No. 91/2010/ND-CP of August 20, 2010.

When granting the above-mentioned benefits and additional support, the company needs to add corresponding columns to calculate the actual work time within the State sector and count the severance into the form No. 9, 9a and 10 promulgated together with the Circular No. 38/2010/TT-BLDTBXH of December 24, 2010 of the Ministry of Labor, War Invalids and Social Affairs on guiding the implementation of a number of Articles of the Government s Decree No. 91/2010/ND-CP of August 20, 2010 on the policy on redundant workers when reorganizing State-owned one-member limited liability companies.

2. Calculate the additional benefits from May 01 and onwards regarding redundant workers being subjects of early retirement as prescribed in Point b, Clause 2, Article 3 of the Government s Decree No. 91/2010/ND-CP of August 20, 2010.

Article 4.Effects

2. This Circular takes effect from June 10, 2012 and supersedes the Circular No. 12/2011/TT-BLDTBXH of April 26, 2011 of the Ministry of Labor, War Invalids and Social Affairs on guiding the application of the general minimum wage to State-owned one-member limited liability companies.

The regimes prescribed in this Circular shall be implemented as from May 01, 2012.

2. The general minimum wage prescribed in Article 1 of the Government s Decree No. 31/2012/ND-CP of April 12, 2012 shall be used as the basis for determining the wage unit price and wage fund as from May 01, 2012 for companies, organizations and units prescribed in Clause 3 Article 5 of the Circular No. 23/2011/TT-BLDTBXH of September 16, 2011 of the Ministry of Labor, War Invalids and Social Affairs on guiding the application of the general minimum wage to workers of companies, enterprises, cooperatives, cartels, farms, households, individuals and agencies, organizations employing labor.

3. From May 01, 2012, the companies prescribed in Article 1 of this Circular and the State organizations, units applying the regulations similarly to that of State companies are entitled to apply the mid-shift meal expenditure for workers but not exceeding 680,000 VND/person/month. The implementation of the mid-shift meals shall comply with the Circular No. 22/2008/TT-BLDTBXH of October 15, 2008 of the Ministry of Labor, War Invalids and Social Affairs on guiding the implementation of mid-shift meals in State-owned companies.

4. For State-owned organizations, units, Joint-stock companies, two-member or more limited liability companies transformed from State-owned companies or State-owned one-member limited liability companies applying the wage scales, payrolls and benefits prescribed by the State for State-owned companies in the Government s Decree No. 205/2004/ND-CP of December 14, 2004, apply the general minimum wage prescribed in Article 1 the Government s Decree No.31/2012/ND-CP of April 12, 2012 to recalculate the wages and benefits in the wage scales, payrolls and benefits for used as a basis for calculating to pay for social insurance, unemployment insurance, health insurance; severance pay; holiday pay, annual days off pay and other regulations as prescribed by labor law.

5. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, Presidents of People’s Committees of central-affiliated cities and provinces are responsible for directing, urging and inspecting the implementation of this Circular by the companies.

Every difficulty and obstruction is recommended to be reported to the Ministry of Labor, War Invalids and Social Affairs for prompt guidance and supplement.