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

DECREE

Providing region-based minimum wage levels for employees of enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies and organizations employing labor under labor contracts[1]

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

Pursuant to the June 18, 2012 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 providing region-based minimum wage levels for employees of enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies and organizations employing labor under labor contracts.

Article 1.Scope of regulation

This Decree provides region-based minimum wage levels for employees of enterprises, cooperatives, cooperative groups, farms, households, individuals and agencies and organizations employing labor under labor contracts in accordance with the Labor Code.

Article 2.Subjects of application

1. Enterprises established, organized, managed and operating under the Law on Enterprises (including also foreign-invested enterprises in Vietnam which do not conduct re-registration or have not yet been transformed as prescribed at Point a, Clause 2, and Clause 3 of Article 170 of the Law on Enterprises).

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

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

Enterprises, cooperatives, cooperative unions, cooperative groups, farms, households, agencies, organizations and individuals specified in Clauses 1, 2 and 3 of this Article are 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 3,100,000/month, for enterprises operating in localities of region I;

b/ VND 2,750,000/month, for enterprises operating in localities of region II;

c/ VND 2,400,000/month, for enterprises operating in localities of region III;

d/ VND 2,150,000/month, for enterprises operating in localities of region IV.

2. Localities of regions I, II, III and IV are specified in the Appendix to this Decree.

Article 4.Principles of application of region-based minimum wage levels

1. An enterprise shall apply the region-based minimum wage level prescribed for the locality where it operates.

2. In case an enterprise operates in several adjacent localities for which different region-based minimum wage levels are prescribed, it shall apply the highest among these region-based minimum wage levels. In case an enterprise has units or branches in localities for which different region-based minimum wage levels are prescribed, each unit or branch shall apply the region-based minimum wage level prescribed for the locality where it operates.

3. In case an enterprise operates in an industrial park or export processing zone based in localities for which different region-based minimum wage levels are prescribed, it shall apply the highest among these region-based minimum wage levels.

4. In case the locality where an enterprise operates is renamed or divided, the region-based minimum wage level prescribed for such locality before it is renamed or divided shall be temporarily applied pending new regulations of the Government.

5. In case an enterprise operates in a locality newly established from one or more than one locality for which different region-based minimum wage levels are prescribed, the highest among these region-based minimum wage levels shall be applied. In case an enterprise operates in a provincial city newly established from one or more than one locality of region IV, the region-based minimum wage level applicable to remaining provincial cities prescribed in Clause 3 of the Appendix to this Circular shall be applied.

Article 5.Application of region-based minimum wage levels

1. The region-based minimum wage levels specified in Article 3 of this Decree are the lowest permissible wage levels which serve as a basis for enterprises and employees to reach agreement on wage payment under which the wage level to be paid to an employee who works in normal working conditions, ensures sufficient working time in a month and fulfills labor norms or jobs as agreed must:

a/ Not be lower than the relevant region-based minimum wage level, for untrained employees who perform the simplest job;

b/ Be at least 7% higher than the relevant region-based minimum wage level, for trained employees specified in Clause 2 of this Article.

2. A trained employee is:

a/ A person who has been granted a vocational training certificate, vocational training diploma or vocational secondary diploma as prescribed in the Government’s Decree No. 90/CP of November 24, 1993, defining the structure of the national educational system and the system of diplomas and certificates of the education and training sector;

b/ A person who has been granted a vocational training certificate or diploma as prescribed in the 1998 Education Law or the 2005 Education Law, or a national vocational skill certificate as prescribed in the Employment Law;

c/ A person who has been granted a certificate under a constant vocational training program, preliminary vocational training certificate, vocational secondary diploma or vocational college diploma or has been completed a contractual vocational training program as prescribed in the Law on Vocational Training;

d/ A person who has been granted a vocational training certificate or diploma by a foreign training institution; or

dd/ A person who is trained by his/her enterprise or self-trained and has undergone an examination and is assigned by his/her enterprise to perform jobs that require trained employees.

3. Based on the region-based minimum wage levels prescribed in Article 3 of this Decree, labor contracts signed with employees, collective labor accords or enterprises’ regulations, enterprises shall, in coordination with grassroots trade union executive boards, reach agreement with employees on the levels of adjustment of wage levels in the wage table or wage scale, wage levels stated in labor contracts and wage levels payable to employees, ensuring conformity with the labor law and reasonable interrelation in wage levels between untrained and trained employees and employees possessing high technical and professional qualification and between junior and senior employees.

4. When applying the region-based minimum wage levels prescribed in this Decree, enterprises must not abolish or cut wage-based allowances paid to employees who work overtime, at night or in hard or hazardous working conditions or benefits in kind for heavy or hazardous positions and other benefits in accordance with the labor law. Allowances, subsidies and bonuses provided by enterprises themselves shall comply with labor contracts, collective labor accords or enterprises’ regulations.

Article 6.Effect

1. This Decree takes effect on January 1, 2015. The Government’s Decree No. 182/2013/ND-CP of November 14, 2013, providing region-based minimum wage levels for employees of enterprises, cooperatives, cooperative groups, farms, households, individuals and employing agencies and organizations cease to be effective from the effective date 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, the Vietnam Cooperative Alliance, the Vietnam Association of Small and Medium Enterprises, related ministries and agencies and provincial-level People’s Committees in, providing information on the region-based minimum wage levels specified in this Decree to employees and employers, and inspecting and supervising the application of these wage levels; and proposing the Government to consider and adjust region-based minimum wage levels according to 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 Decree.

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG

Appendix

List of localities applicable to region-based minimum wage levels from January 1, 2015

(To the Government’s Decree No. 103/2014/ND-CP of November 11, 2014)

1. Region I includes the following localities:

- Urban districts and Gia Lam, Dong Anh, Soc Son, Thanh Tri, 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, Di An, Ben Cat and Tan Uyen towns, and Bau Bang and Bac Tan Uyen rural districts of Binh Duong province;

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

2. Region II includes 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, Cam Pha, Uong Bi 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;

- Nam Dinh city and My Loc rural district of Nam Dinh 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;

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

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

- Remaining rural districts of Binh Duong province;

- Dong Xoai town and 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, Ha Tien town and Phu Quoc rural district of Kien Giang province;

- Long Xuyen city of An Giang province;

- Ca Mau city of Ca Mau province.

3. Region III  includes 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;

- Remaining 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;

- Luong Son rural district of Hoa 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 rural 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 and Dong Hoa rural district 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;

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

- Remaining rural districts of Tay Ninh 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;

- Kien Tuong town and 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 town and Long Ho rural district of Vinh Long province;

- Rural districts of Can Tho city;

- Kien Luong, Kien Hai, Giang Thanh and Chau Thanh rural districts of Kien Giang province;

- Tan Chau town 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 includes the remaining localities.-