Circular No. 24/2008/TT-BLDTBXH dated October 20, 2008 of the Ministry of Labour, War Invalids and Social Affairs guiding the application of region-based minimum wage levels for Vietnamese enterprises, cooperatives, cooperative unions, cooperative groups, farms, households and individuals and other Vietnamese organizations employing laborers

CIRCULAR

GUIDING THE APPLICATION OF REGION-BASED MINIMUM WAGE LEVELS FOR VIET­NAMESE ENTERPRISES, COOPERA­TIVES, COOPERATIVE UNIONS, COOPERATIVE GROUPS, FARMS, HOUSEHOLDS AND INDIVIDUALS AND OTHER VIETNAMESE ORGANIZA­TIONS EMPLOYING LABORERS

Pursuant to the Government's Decree No. 110/2008/ND-CP of October 10, 2008, prescribing region-based minimum wage levels for laborers working for Vietnamese companies, enterprises, cooperatives, cooperative groups, farms, households and individuals and other Vietnamese organizations employing laborers, the Ministry of Labor, War Invalids and Social Affairs guides the application of region-based minimum wage levels for Vietnamese enterprises, cooperatives, cooperative unions, cooperative groups, farms, households and individuals and other Vietnamese organizations employing laborers as follows:

I. SCOPE OF REGULATION AND SUBJECTS OF APPLICATION

1. Scope of regulation:

a/ Companies and enterprises operating under the Enterprise Law. including limited liability companies, joint stock companies, partnerships and private enterprises (excluding one-member limited liability companies with 100% state-owned charter capital and foreign-invested enterprises).

b/ Cooperatives, cooperative unions, cooperatives groups, farms, households, individuals and other Vietnamese organizations employing laborers under labor contracts (excluding foreign agencies and organizations, international organizations and foreigners in Vietnam).

The companies, enterprises, organizations and individuals specified at Points a and b, Clause 1. Section I of this Circular are below collectively referred to as enterprises.

2. Subjects of application:

a/ Laborers working under labor contracts according to the Government's Decree No. 44/ 2003/ND-CP of May 9,2003. detailing and guiding the implementation of a number of articles of the Labor Code concerning labor contracts.

b/ Salaried employees holding management posts at enterprises.

II. APPLICATION OF REGION-BASED MINIMUM WAGE LEVELS

1. Region-based minimum wage levels paid to laborers doing the simplest jobs under normal working conditions at enterprises shall be applied from January 1. 2009, according to the regions specified in Article 2 of Decree No. 110/2008/ND-CP as follows:

a/ The level of VND 800.000/month shall be applied to companies operating in localities of region I. including:

- Urban districts and Ha Dong city of Hanoi:

- Urban districts of Ho Chi Minn City.

b/The level of VND 740.000/month shall be applied to companies operating in localities of region II, including:

- Gia Lam. Dong Anh. Soc Son, Thanh Tri, Tu Liem. Tnuong Tin. Hoai Duc. Dan Phuong. Thach That and Quoc Oai districts and Son Tay city of Hanoi;

- Rural districts of Ho Chi Minh City;

- Urban districts and Thuy Nguyen and An Duong districts of Hai Phong city:

- Urban and rural districts of Da Nang city;

- Ninh Kieu and Binh Thuy districts of Can Tho city:

- Ha Long city of Quang Ninh province;

- Bien Hoa city. Long Khanh town and Nhon Trach. Long Thanh, Vinh Cuu and Trang Bom districts of Dong Nai province;

- Thu Dau Mot town and Thuan An. Di An, Ben Cat and Tan Uyen districts of Binh Duong province:

- Vung Tau city and Tan Thanh rural district of Ba Ria-Vung Tau province.

c/ The level of VND 690.000/month shall be applied to companies operating in localities of region III, - including:

- Provincial cities (except those of region II);

- Remaining rural districts of Hanoi;

- Bac Ninh city. Tu Son town and Que Vo. Tien Du and Yen Phong districts of Bac Ninh province:

- Bac Giang city and Viet Yen and Yen Dung districts of Bac Giang province;

- Hung Yen town and My Hao. Van Lam. Van Giang and Yen My districts of Hung Yen province:

-  Hai Duong city and Cam Giang. Nam Sach. Chi Linh. Kim Thanh and Kinh Mon districts of Hai Duong province:

- Vinh Yen city and Phuc Yen town of Vinh Phuc province;

- Remaining rural districts of Hai Phong city;

-  Mong Cai city and Uong Bi and Cam Pha towns of Quang Ninh province:

-  Da Lat city and Bao Loc town of' Lam Dong province;

-  NhaTrang city and Cam Ranh town of Khanh Hoa province;

-  Trang Bang district of Tay Ninh province;

- Remaining rural districts of Binh Duong province:

- Remaining rural districts of Dong Nai province:

- Tan An town and Duc Hoa. Ben Luc and Can Duoc districts of Long An province:

- Remaining urban and rural districts of Can Tho city;

- Ba Ria town and Chau Duc. Long Dien. Dat Do and Xuyen Moc districts of Ba Ria-Vung Tau province.

d/ The level of VND 650.000/month shall be applied to companies operating in localities of region IV, covering the remaining localities.

2. Enterprises having units or branches operating in localities subject to different region-based minimum wage levels shall apply the region-based minimum wage levels applicable to the regions where such units or branches are based.

3. The lowest wage level paid to laborers having received vocational training (including laborers trained by enterprises themselves) must be at least 7% higher than the region-based minimum wage levels specified in Clause 1. Section II of this Circular. Laborers having received vocational training include:

- Those having received vocational training and obtained vocational training certificates or diplomas or.intermediate-level vocational training diplomas under the Governments Decree No. 90/CP of November 24. 1993. prescribing the framework structure of the national education system and its diploma and certificate system;

- Those having received vocational training and obtained vocational training certificates or diplomas under the 1998 Education Law and the 2005 Education Law;

- Those having received vocational training and obtained continuing vocational training certificates, elementary-level vocational training certificates, intermediate-level vocational training diplomas, collegial-level vocational training diplomas or those having completed a vocational training program under a vocational training contract according to the Law on Vocational Training:

- Those having received vocational training and obtained foreign vocational training diplomas or certificates;

- Those doing jobs requiring vocational training, and having been trained by their employers or having learned job skills by themselves and been tested by their employers as qualified for the jobs.

4. Enterprises are encouraged to pay laborers a minimum wage level higher than the region-based minimum wage levels specified in this Circular suitable to laborers' working efficiency, enterprises' production and business results and the pay level of the market.

5. The region-based minimum wage levels specified in this Circular shall be used as a basis for determining wage levels in wage scales, tables and allowances; wage levels specified in labor contracts; unit prices of wage; social and health insurance premiums and benefits; severance pay, wage during holidays and annual leave, and other entitlements under the labor law at enterprises that set their own wage tables, scales and allowances according to the Government's Decree No. 114/2002/ND-CP of December 31, 2002, detailing and guiding the implementation of a number of articles of the Labor Code concerning wages, and the Labor. War Invalids and Social Affairs Ministry's Circulars No. 13/2003/TT-BLDTBXH of May 30, 2003. and No. 28/2007/TT-BLDTBXH of December 5,2007.

Joint stock companies and limited liability companies with two or more members which have been transformed from state companies and are applying state-prescribed wage tables and scales and wage allowance regimes applicable to state companies under the Government's Decrees No. 205/2004/ND-CP and No. 204/2004/ND-CP of December 14, 2004, shall pay wages to their laborers not lower than region-based minimum wage levels.

6. When applying this Circular, enterprises may not abolish or reduce policies on wages for overtime work and night-time work; wages or allowances for working under hard or hazardous conditions; remunerations in kind for doing hard or hazardous jobs and other entitlements under the labor law.

Allowances, subsidies and bonus prescribed by enterprises shall be paid in accordance with labor contracts, collective labor agreements or enterprises' regulations under the labor law.

7. Employers and employees may agree upon specific adjustments of wage levels specified in labor contracts or in wage scales and tables set by enterprises under Article 57 of the Labor Code and the Government's Decree No. 114/2002/ND- CP of December 31,2002, on the basis of the pay level of the market and living costs while ensuring a rational proportion of wage levels between newly recruited and senior employees of enterprises.

III. IMPLEMENTATION EFFECT

1. This Circular takes effect on January 1.2009.

To annul Circular No. 30/2007/TT-BLDTBXH of December 5, 2007, guiding the application of common minimum wage levels and region-based minimum wage levels for Vietnamese enterprises, cooperatives, cooperative unions, cooperative groups, farms, households and individuals and other Vietnamese organizations employing laborers.

2. The common minimum wage levels specified in Article 1 of the Government's Decree No. 166/ 2007/ND-CP of November 16,2007, shall be used to determine wage and wage allowance levels in wage scales, tables and allowances to be used as a basis for determining social and health insurance premiums and benefits; severance pay. wage during holidays and annual leave and other entitlements under the labor law for laborers specified in Clause 2, Section I of this Circular who work in joint stock companies and limited liability companies with two or more members which have been transformed from state companies and are applying state-prescribed wage fables and scales and wage allowance regimes applicable to state companies under the Government's Decrees No. 205/2004/ND-CP and No. 204/2004/ND-CP of December 14. 2004. When the Government prescribes new common minimum wage levels, these levels shall be applied.

3. Expenses for applying the minimum wage levels specified in this Circular may be accounted as production costs or production and business expenses.

4. Ministries, ministerial-level agencies, government-attached agencies and provincial-level People's Committees shall direct urge and examine enterprises in strictly observing this Circular.

In the course of implementation, ministries, ministerial-level agencies, government-attached agencies, provincial-level People's Committees and enterprises should report arising problems to the Ministry of Labor. War Invalids and Social Affairs for consideration and settlement.