Decree No. 108/2010/ND-CP dated October 29, 2010 of the Government providing for region-based minimum wage levels for laborers working for vietnamese companies, enterprises, cooperatives, cooperative groups, farms, households and individuals and other organizations employing laborers

DECREE

PROVIDING FOR REGION-BASED MINIMUM WAGE LEVELS FOR LABORERS WORKING FOR VIETNAMESE COMPANIES, ENTERPRISES, COOPERATIVES, COOPERATIVE GROUPS, FARMS, HOUSEHOLDS AND INDIVIDUALS AND OTHER ORGANIZATIONS EMPLOYING LABORERS

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,

DECREES:

Article 1.Subjects and scope of application

This Decree provides for region-based minimum wage levels for laborers working for Vietnamese companies, enterprises, cooperatives, cooperative groups, farms, households and individuals and other organizations employing laborers, including:

1. State-owned one-member limited liability companies which are organized and managed and operate under the Law on Enterprises.

2. Enterprises which are established organized and managed and operate under the Law on Enterprises (excluding foreign-invested enterprises).

3. Vietnamese cooperatives, cooperative unions, cooperative groups, farms, households and individuals and other organizations employing laborers.

Companies, enterprises, organizations and individuals defined in Clauses 1. 2 and 3 of this Article arc collectively referred to as enterprises.

Article 2.Region-based minimum wage levels

Region-based minimum wage levels used as a basis for payment to laborers doing the simplest jobs under normal working conditions at enterprises defined in Article I of this Decree shall be applied according to regions as follows:

1. The level of VND 1.350,000/month applies to enterprises operating in localities of region T.

2. The level of VND 1.200,000/month applies to enterprises operating in localities of region TT.

3. The level of VND 1.050,000/month applies to enterprises operating in localities of region III.

4. The level of VND 830.000/month applies to enterprises operating in localities of region IV.

Article 3.Localities in which region-based minimum wage levels will be applied are specified in Appendices I and II to this Decree.

Article 4.Application of region-based minimum wage levels

1. Enterprises defined in Clauses 1 Article 1 of this Decree may apply minimum wage levels higher than the region-based minimum wage levels specified by the Government in Article 2 of this Decree for calculating wage unit prices and wage funds applicable to full-time Members Council members or full-time company presidents; full-lime directors general (directors), deputy directors general (deputy directors), chief accountants and controllers, but shall satisfy all the conditions specified at Point a, Clause 2. Article 4 of the Government s Decree No. 86/ 2007/ND-CP of May 28. 2007. on management of laborers and wages in one-member limited liability companies with 100% charter capital owned by the State.

2. For enterprises defined in Clauses 2 and 3. Article 1 of this Decree:

a/ To apply the region-based minimum wage levels specified in Article 2 of this Decree for calculating wage levels in wage scales and tables, wage-based allowances and wage levels to be indicated in labor contracts, and implementing other regimes they adopt and issue according to their competence prescribed by the labor law:

b/ The lowest wage levels paid to laborers who have attended vocational training (including training conducted by enterprises themselves) must be at least 7% higher than the region-based minimum wage levels specified in Article 2 of this Decree;

c/ Enterprises are encouraged to apply minimum wage levels higher than the region-based minimum wage levels specified in Article 2 of this Decree:

d/ Based on the region-based minimum wage levels specified in Article 2 of this Decree, enterprises shall adjust wages in labor contracts accordingly.

Article 5.Organization of implementation

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, concerned ministries and sectors and provincial-level People s Committees in, informing the region-based minimum wage levels specified in this Decree to employees and employers and inspecting and supervising the application of such wage levels.

Article 6.Effect

1. The region-based minimum wage levels specified in Article 2 of this Decree will apply from:

a/ January 1, 2011, for the localities specified in Appendix I to this Decree.

b/ July 1, 2011, for the localities subject to the region-based minimum wage levels as specified in Appendix II to this Decree.

2. To annul the Government s Decree No. 97/ 2009/ND-CP of October 30, 2009, on the region-based minimum wage levels for laborers for Vietnamese companies, enterprises, cooperatives, cooperative groups, farms, households and individuals and other organizations employing laborers.

3. Pending the formulation of wage scales and tables under the Government s Decree Mo. 101/ 2009/ND-CP of November 5. 2009. on pilot establishment, organization, operation and management of state economic groups, parent companies - state economic groups, state companies not yet transformed into one-member limited liability companies, organizations and units currently applying wage regimes like state companies shall continue applying wage adjustment coefficients higher than the common minimum wage levels to determine wage unit prices and wage funds of Boards of Directors (or Members Councils) and directors general (directors) under the Government s Decree No. 205/2004/ND-CP. Decree No. 206/2004/ND-CP and Decree No. 207/2004/ND-CP of December 24. 2004. Decree No. 141/2007/ND-CP of September 5, 2007, and Decree No. 28/2010/ND-CP of March 25. 201(1 until the Government issues new regulations.

4. 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.

APPENDIX 1

LIST OF LOCALITIES TO APPLY REGION-BASED MINIMUM WAGE LEVELS FROM JANUARY I. 2011
(To the Government s Decree No. 108/2010 ND-CP of October 29, 2010)

1. Region I, covering the following localities: - Urban districts of Hanoi;

- Urban districts of Ho Chi Minh City.

2. Region II, covering the following localities:

- Gia Lam. Dong Ann. Soc Soil Thanh Tri. Tu Liem, Thuong Tin. Hoai Due, Dan Phuong, Thach That. Quoc Oai, Me Linh and Chuong My districts and Son Tay town of Hanoi;

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

- Hai Duong city of Hai Duong province;

- Vinh Yen city. Phuc Yen town and Binh Xuycn district of Vinh Phuc province;

- Bac Ninh city, Tu Son town and Que Vo. Tien Du and Yen Phong 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;

- Ninh Binh city of Ninh Binh province:

- Hue city of Thua Thien Hue province;

- Urban and rural districts of Da Nang city:

- Nha Trang city and Cam Ranh town of Khanh Hoa province;

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

- Phan Thiet city of Binh Thuan province:

- Rural districts of Ho Chi Minh City;

- 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. Ba Ria town and Tan Thanh district of Ba Ria-Vung Tau 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 Man city of Ca Mau province.

3. Region III, covering the following localities:

- Provincial cities (except those of region 11);

- Remaining rural districts of Hanoi;

- Remaining rural districts of Hai Phong city;

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

- Yen Lac. Vinh Tuong, Tarn Dao. Tarn Duong, LapThach and Song Lo districts of Vinh Phuc province;

- Phu Ninh and Lam Thao districts of Phu Tho province;

- Gia Binh, Thuan Thanh and Luong Tai districts of Bac Ninh province;

- Viet Yen. Yen Dung and Hiep Hoa districts of Bac Giang province;

- Uong Bi and Cam Pha towns and Hoanh Bo and Dong Trieu districts of Quang Ninh province:

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

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

- My Loc district of Nam Dinh province:

- Duy Tien and Kim Bang districts of Ha Nam province:

- Tarn Diep town and Gia Vien. Yen Khanh and Hoa Lu districts of Ninh Binh province;

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

- Ky Anh district of Ha Tinh province:

- Huong Thuy town and Huong Tra, Phu Loc. Phong Dien, Quang Dien and Phu Vang of Thua Thicn Hue province;

- Dien Ban. Dai Loc. Duy Xuyen and Nui Thanh districts of Quang Nam province:

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

- Song Cau town of Phu Yen province;

- Cam Lam, Dien Khanh, Ninh Hoa and Van Ninh districts of Khanh Hoa province:

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

- Due Trong and Di Linh districts of Lam Dong province:

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

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

- Dong Xoai. Phuoc Long and Binh Long towns and Chon Thanh and Dong Phu districts of Binh Phuoc province;

- Remaining rural districts of Dong Nai province:

- Remaining rural districts of Binh Duong province;

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

- Thu Thua, Due Hoa, Ben Luc, Can Duoc and Can Giuoc districts of Long An province;

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

- Chau Thanh district of Ben Tie province;

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

- Rural districts of Can Tho province;

- Ha Tien town and Kien Luong. Plui Quoc. Kien Hai, Giang Thanh and Chau Thanh 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 districts of Hau Giang province:

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

4. Region TV, covering the remaining localities.

APPENDIX II

LIST OF LOCALITIES TO APPLY THE REGION-BASED MINIMUM WAGE LEVELS FROM JULY 1. 2011
(To the Government s Decree No. 108/2010/ND-CP of October 29, 2010)

1. Region I, covering the following localities:

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

- Bien Hoa city and N hon Trach, Long Thanh, Vinh Cuu and Trang Born districts of Dong Nai province;

- Tim Dan Mot town and Thuan An. Di An. Ben Cat and Tan Uyen districts of Binh Duong province;

- VungTau city of Ba Ria-VungTau province.

2. Region II, covering the following localities:

- Dinh Quan and Xuan Loc districts of Dong Nai province:

- Phu Giao and Dau Tieng districts of Binh Duong province:

- Tan An city and Due Hoa. Ben Luc. Can Duoc and Can Giuoc districts of Long An province.

3. Region III, covering Thu Thua. Due Hue. Chau Thanh and Tan Tru districts of Long An province.-