Decree No. 103/2012/ND-CP dated December 04, 2012 of the Government stipulating region-based minimum wage levels for laborers working for companies, enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies, organizations employing laborers

THE GOVERNMENT

Decree No. 103/2012/ND-CP of December 4, 2012, providing for region-based minimum wage levels for employees of enterprises, cooperatives, cooperative groups, farms, households, individuals and labor-employing agencies and organizations

THE GOVERNMENT

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

Pursuant to the June 23, 1994 Labor Code; the April 2, 2002 Law Amending and Supplementing a Number of Articles of the Labor Code; and the June 29, 2006 Law Amending and Supplementing a Number of Articles of the Labor Code;

Pursuant to the November 29, 2005 Law on Enterprises;

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

The Government promulgates the Decree to provide for region-based minimum wage levels for employees of enterprises, cooperatives, cooperative groups, farms, households, individuals and labor-employing agencies and organizations.

Article 1. Scope of regulation

This Decree provides for region-based minimum wage levels for employees of enterprises, cooperatives, cooperative groups, farms, households, individuals and labor-employing agencies and organizations.

Article 2. Subjects of application

1. Enterprises established, organized, managed and operating under the Law on Enterprises (including foreign-invested enterprises in Vietnam).

2. Vietnamese cooperatives, cooperative unions, cooperative groups, farms, households, individuals and other organizations that employ labor.

3. Foreign agencies and organizations, international organizations and foreigners in Vietnam that employ labor (unless otherwise provided in treaties to which the Socialist Republic of Vietnam is a contracting party).

Enterprises, agencies, organizations and individuals defined in Clauses 1 thru 3 of this Article are below collectively referred to as enterprises.

Article 3. Region-based minimum wage levels

1. Region-based minimum wage levels for enterprises are specified as follows:

a/ VND 2,350,000/month, for enterprises operating in localities of region I.

b/ VND 2,100,000/month, for enterprises operating in localities of region II.

c/ VND 1,800,000/month, for enterprises operating in localities of region III.

d/ VND 1,650,000/month, for enterprises operating in localities of region IV.

2. Localities in which region-based minimum wage levels will be applied are specified in the Appendix to this Decree.

Article 4. Application of region-based minimum wage levels

1. The region-based minimum wages specified Clause 1, Article 3 of this Decree will serve as a basis for enterprises and employees to reach agreement on wages in order to ensure that:

a/ The monthly wage to be paid to untrained employees, who perform the simplest job in normal working conditions for a standard number of working days in a month and fulfill labor norms or agreed work, must not be lower than the minimum wage level.

b/ The lowest wage to be paid to trained employees (including those trained by enterprises themselves) must be at least 7% higher than the region-based minimum wage level.

2. The region-based minimum wage levels specified in Clause 1, Article 3 of this Decree are applied to enterprises that formulate and promulgate wage scales and tables under Article 57 of the Labor Code as follows:

a/ For enterprises that have formulated and promulgated wage scales and tables, based on the region-based minimum wage levels, enterprises shall adjust wage levels in their wage scales and tables, wage-based allowances and wage levels indicated in labor contracts in accordance with agreements and the labor law.

b/ For enterprises that have not formulated and promulgated wage scales and tables, based on the region-based minimum wage levels, enterprises shall calculate wage levels upon formulating wage scale, wage table, wage-based allowance and wage levels indicated in labor contracts, and comply with other regimes provided by the labor law.

3. Enterprises are encouraged to pay to their employees wages higher than the region-based minimum wage levels specified in Clause 1 of Article 3 and Clause 1 of this Article.

Article 5. Effect

1. This Decree takes effect on January 20, 2013. The region-based minimum wage levels specified in Clause 1 of Article 3 and the regimes specified in this Decree start to be applied on January 1, 2013.

2. This Decree supersedes the Government’s Decree No. 70/2011/ND-CP of August 22, 2011, providing for region-based minimum wage levels for employees of companies, enterprises, cooperatives, cooperative groups, farms, households, individuals and labor-employing agencies and organizations.

3. Upon determining employees’ wage unit prices and managerial officials’ wage funds under the Government’s Decrees No. 206/2004/ND-CP of December 14, 2004; No. 207/2004/ND-CP of December 14, 2004; No. 86/2007/ND-CP of May 28, 2007; and No. 141/2007/ND-CP of September 5, 2007, state-owned single-member limited liability companies, state companies not yet transformed into limited liability companies or joint-stock companies, and organizations and units currently applying wage regimes like state companies may choose appropriate minimum wage levels for application if they satisfy the conditions specified by the Government, and the wage increase for managerial officials must not exceed the wage increase for employees pending further regulations.

Article 6. Implementation responsibilities

1. The Ministry of Labor, War Invalids and Social Affairs shall guide the implementation of this Decree.

2. The Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with the Vietnam General Confederation of Labor, the Vietnam Chamber of Commerce and Industry, related ministries and agencies and provincial-level People’s Committees in, disseminating the region-based minimum wage levels specified in this Decree among employees and employers, and inspecting and supervising the application of these wage levels; and submitting to the Government for consideration and decision adjustments to the region-based minimum wage levels under regulations.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, agencies and enterprises shall implement this Decrees.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG

Appendix

List of localities in which region-based minimum wage levels will be applied from January 1, 2013

(To the Government’s Decree No. 103/2012/ND-CP of December 4, 2012)

1. Region I, embracing the following localities:

- Urban districts and Gia Lam, Dong Anh, Soc Son, Thanh Tri, Tu Liem, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh and Chuong My rural districts and Son Tay town of Hanoi city;

- Urban districts and Thuy Nguyen, An Duong, An Lao and Vinh Bao rural districts of Hai phong city;

- Urban districts and Cu Chi, Hoc Mon, Binh Chanh and Nha Be rural districts of Ho Chi Minh City;

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

- Thu Dau Mot city, Thuan An and Di An towns, and Ben Cat and Tan Uyen rural districts of Binh Duong province;

- Vung Tau city of Ba Ria-Vung Tau province.

2. Region II, embracing the following localities:

- Remaining rural districts of Hanoi city;

- Remaining rural districts of Hai phong city;

- Hai Duong city of Hai Duong province;

- Hung Yen city and My Hao, Van Lam, Van Giang and Yen My rural districts of Hung Yen province;

- Vinh Yen city, Phuc Yen town and Binh Xuyen and Yen Lac rural districts of Vinh Phuc province;

- Bac Ninh city, Tu Son town and Que Vo, Tien Du, Yen Phong and Thuan Thanh rural districts of Bac Ninh province;

- Ha Long and Mong Cai cities of Quang Ninh province;

- Thai Nguyen city of Thai Nguyen province;

- Viet Tri city of Phu Tho province;

- Lao Cai city of Lao Cai province;

- Ninh Binh city of Ninh Binh province;

- Hue city of Thua Thien Hue province;

- Urban and rural districts of Da Nang city;

- Nha Trang  and Cam Ranh cities of Khanh Hoa province;

- Da Lat and Bao Loc cities of Lam Dong province;

- Phan Thiet city of Binh Thuan province;

- Can Gio rural district of Ho Chi Minh City;

- Long Khanh town and Dinh Quan and Xuan Loc rural districts of Dong Nai province;

- Phu Giao and Dau Tieng rural districts of Binh Duong province;

- Chon Thanh rural district of Binh Phuoc province;

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

- Tan An city and Duc Hoa, Ben Luc, Can Duoc and Can Giuoc rural districts of Long An province;

- My Tho city of Tien Giang province;

- Urban districts of Can Tho city;

- Rach Gia city of Kien Giang province;

- Long Xuyen city of An Giang province;

- Ca Mau city of Ca Mau province.

3. Region III, embracing the following localities:

- Remaining provincial cities (except those of regions I and II);

- Chi Linh town and Cam Giang, Nam Sach, Kim Thanh, Kinh Mon, Gia Loc, Binh Giang and Tu Ky rural districts of Hai Duong province;

- Vinh Tuong, Tam Dao, Tam Duong, Lap Thach and Song Lo rural districts of Vinh Phuc province;

- Phu Tho town and Phu Ninh, Lam Thao, Thanh Ba and Tam Nong rural districts of Phu Tho province;

- Gia Binh and Luong Tai rural districts of Bac Ninh province;

- Viet Yen, Yen Dung, Hiep Hoa, Tan Yen and Lang Giang rural districts of Bac Giang province;

- Hoanh Bo and Dong Trieu rural districts of Quang Ninh province;

- Bao Thang and Sa Pa rural districts of Lao Cai province;

- Remaining rural districts of Hung Yen province;

- Song Cong town and Pho Yen, Phu Binh, Phu Luong, Dong Hy and Dai Tu rural districts of Thai Nguyen province;

- My Loc rural district of Nam Dinh province;

- Duy Tien and Kim Bang rural districts of Ha Nam province;

- Tam Diep town and Gia Vien, Yen Khanh and Hoa Lu rural districts of Ninh Binh province;

- Bim Son town and Tinh Gia rural district of Thanh Hoa province;

- Ky Anh rural district of Ha Tinh province;

- Huong Thuy and Huong Tra towns, and Phu Loc, Phong Dien, Quang Dien and Phu Vang rual districts of Thua Thien-Hue province;

- Dien Ban, Dai Loc, Duy Xuyen and Nui Thanh rural districts of Quang Nam province;

- Binh Son and Son Tinh rural districts of Quang Ngai province;

- Song Cau town of Phu Yen province;

- Ninh Hai and Thuan Bac rural districts of Ninh Thuan province;

- Ninh Hoa town and Cam Lam, Dien Khanh, and Van Ninh rural districts of Khanh Hoa province;

- Dak Ha rural district of Kon Tum province;

- Duc Trong and Di Linh rural districts of Lam Dong province;

- La Gi town and Ham Thuan Bac and Ham Thuan Nam rural districts of Binh Thuan province;

- Trang Bang and Go Dau rural districts of Tay Ninh province;

- Dong Xoai, Phuoc Long and Binh Long towns and Dong Phu and Hon Quan rural districts of Binh Phuoc province;

- Remaining rural districts of Dong Nai province;

- Long Dien, Dat Do, Xuyen Moc, Chau Duc and Con Dao rural districts of Ba Ria-Vung Tau province;

- Thu Thua, Duc Hue, Chau Thanh, Tan Tru and Thanh Hoa rural districts of Long An province;

- Go Cong town and Chau Thanh rural district of Tien Giang province;

- Chau Thanh rural district of Ben Tre province;

- Binh Minh and Long Ho rural districts of Vinh Long province;

- Rural districts of Can Tho city;

- Ha Tien town and Kien Luong, Phu Quoc, Kien Hai, Giang Thanh and Chau Thanh rural districts of Kien Giang province;

- Chau Doc and Tan Chau towns of An Giang province;

- Nga Bay town and Chau Thanh and Chau Thanh A rural districts of Hau Giang province;

- Nam Can, Cai Nuoc, U Minh and Tran Van Thoi rural districts of Ca Mau province.

4. Region IV, embracing the remaining localities.-