Decree No. 103/2014/ND-CP dated November 11, 2014 of the Government providing stipulating regional minimum wage level for laborers working for enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies, organizations employing laborers according to labor contracts

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Decree No. 103/2014/ND-CP dated November 11, 2014 of the Government providing stipulating regional minimum wage level for laborers working for enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies, organizations employing laborers according to labor contracts
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Official number:103/2014/ND-CPSigner:Nguyen Tan Dung
Type:DecreeExpiry date:
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Issuing date:11/11/2014Effect status:
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Fields:Labor - Salary

SUMMARY

FROM JANUARY 01, 2015, INCREASE REGIONAL MINIMUM WAGE LEVEL

In accordance with the Decree No. 103/2014/ND-CP dated November 11, 2014 of the Government providing stipulating regional minimum wage level for laborers working for enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies, organizations employing laborers according to labor contracts, from January 01, 2015, the regional minimum wage shall be different from VND 2,150,000/month to VND 3,100,000/month, increased by VND 250.000 – 400.000/month depending on different localities.

The regional minimum wage levels applied to enterprises operating in localities of region I such as urban districts and Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, Chuong My districts and Son Tay town of Hanoi City; urban districts and Thuy Nguyen, An Duong, An Lao, Vinh Bao districts of Hai Phong City; urban districts and Cu Chi, Hoc Mon, Binh Chanh, Nha Be districts of Ho Chi Minh City..with the level of  VND 3,100,000/month which increased by VND 400.000/month (compared with the previous level of VND 2,700,000/month. For enterprises operating in localities of region II, II and IV, the regional minimum wage levels shall be increased by VND 250.000 – 350.000/month to VND 2,750,000/month; VND 2,400,000/month and VND 2,150,000/month  from January.

The regional minimum wage level is basis for enterprises and laborers making agreement on wage, of which the monthly wage levels paid to laborers working under normal working conditions, being ensured sufficient normal working duration in months and finished under the labor norms or the agreed work must ensure that not being lower that the minimum wage levels paid to untrained laborers working simplest jobs and being at least 7% higher than the regional minimum wage levels paid to laborers who have received vocational training.

When implementing the minimum wage level as stipulated under this Decree, the enterprise are not permitted deleting or cutting benefits when the laborers work overtime, work at night, or work under the hazardous conditions. For hazardous jobs, it must have other benefits as stipulated by the law.Allowances, bonuses stipulated by enterprises shall be done as stated in the labor contract and according to regulations of the enterprise.

This Decree takes effect on January 01, 2015 and replaces the Decree No. 182/2013/ND-CP dated November 14, 2013.
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THE GOVERNMENT

Decree No. 103/2014/ND-CP dated November 11, 2014 of the Government providing stipulating regional minimum wage level for laborers working for enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies, organizations employing laborers according to labor contracts
Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Labor Code dated June 18, 2012;
Pursuant to the Law on Enterprises dated November 29, 2005;
At the proposal of the Minister of Labor, Invalids and Social Affairs;
The Government promulgates the Decree stipulating regional minimum wage levels for laborers working for enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies, organizations employing laborers according to labor contracts.
Article 1. Scope of application
This Decree stipulates the regional minimum wage levels applied to laborers working for enterprises, cooperatives, cooperative groups, farms, households and individuals and agencies, organizations employing laborers according to labor contracts as stipulated by the Labor Code.
Article 2. Subjects of application
1. The enterprises, which are established, organized and operated under the Law on Enterprises (including Vietnam-based foreign-invested enterprises have not re-registered or have not transferred as stipulated under Point a Clause 2 and Clause 3 Article 170 of the law on Enterprises).
2. The cooperatives, cooperative unions, cooperative groups, farms, households, individuals and the other organizations of Vietnam employing laborers according to labor contracts.
3. The foreign agencies, foreign organizations, international organizations and foreigners in Vietnam employing laborers (unless the international treaties, of which the Socialist Republic of Vietnam is a member, have provisions different from this Decree).
Enterprises, cooperatives, cooperative unions, cooperative groups, farms, households, agencies, organizations, and individuals defined in Clauses 1, 2 and 3 of this Article are collectively referred to as enterprises.
Article 3. Regional minimum wage levels
1. To stipulate the regional minimum wage levels applied to enterprises as follows:
a) The level of VND 3,100,000/month applies to enterprises operating in localities of region I.
b) The level of VND 2,750,000/month applies to enterprises operating in localities of region II.
c) The level of VND 2,400,000/month applies to enterprises operating in localities of region III.
d) The level of VND 2,150,000/month applies to enterprises operating in localities of region IV.
2. Localities in region I, II, III and IV shall be specified in the Appendix promulgated together with this Decree.
Article 4. Principles of application of regional minimum wage levels
1. Enterprises operating in which area shall be applied the minimum wage level of that area.
2. Enterprises operating in the close areas that have the different minimum wage level shall apply the minimum wage level of the area that has the highest minimum wage. If units, branches of the enterprise operate in the area that has the different minimum wage level, those units, branches operating in which areas shall apply the minimum wage level of that area.
3. Enterprises operating in industrial parks, export-processing zones in those areas that have different minimum wage level shall apply according to the highest minimum wage level in those areas.

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