Decree No. 122/2015/ND-CP dated November 14, 2015 of the Government regulating region-based minimum wages for employees working for companies, cooperative unions, cooperatives, cooperative groups, farms, households, individuals and organizations hiring employees under labor contracts

DECREE

Providing region-based minimum wage levels for employees of enterprises, cooperative unions, 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 26, 2014 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, cooperative unions, 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, cooperative unions, 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 in accordance with the Law on Enterprises.

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

3. Vietnam-based foreign agencies and organizations, international organizations and foreigners that employ labor under labor contracts (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 below collectively referred to as enterprises.

Article 3. Region-based minimum wage levels

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

a/ VND 3,500,000/month, applicable to enterprises operating in localities of region I;

b/ VND 3,100,000/month, applicable to enterprises operating in localities of region II;

c/ VND 2,700,000/month, applicable to enterprises operating in localities of region III;

d/ VND 2,400,000/month, applicable to enterprises operating in localities of region IV.

2. Localities in 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. 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.

2. In case an enterprise operates in an industrial park, an export processing zone, an economic zone or a hi-tech park 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.

3. 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.

4. 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 Section 3 of the Appendix to this Decree 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 their employees to reach agreement on wage payment under which the wage level to be paid to an employee who works in normal working conditions and for normal 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 degree, professional secondary school degree, or vocational secondary school degree, college degree, university certificate of general studies, university degree, bachelor degree, master degree, or doctoral degree as prescribed in the Government’s Decree No. 90/CP of November 24, 1993, defining the framework structure of the national education system and the system of education and training degrees and certificates;

b/ A person who has been granted a professional secondary school degree, vocational training degree, college degree, university degree, master degree or doctoral degree; vocational training certificate or degree; university degree or continuing education certificate or degree in accordance with the 1998 Education Law or the 2005 Education Law;

c/ A person who has been granted a certificate under a continuing vocational training program, preliminary vocational training certificate, degree of vocational education at intermediate level or degree of vocational education at collegial level or has completed a vocational training program under a vocational contract in accordance with the Law on Vocational Training;

d/ A person who has been granted a national vocational skill certificate in accordance with the Employment Law;

dd/ A person who has been granted a vocational training certificate or degree at the elementary, intermediate or collegial level; under continuing training or another vocational training program in accordance with the Law on Vocational Training;

e/ A person who has been granted a degree for a training level of the university education in accordance with the Law on Higher Education;

g/ A person who has been granted a vocational training certificate or degree 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 agreements 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 wage differences between untrained and trained employees and employees possessing high technical and professional qualifications and between junior and senior employees.

4. When applying the region-based minimum wage levels prescribed in this Decree, enterprises may neither abolish nor cut wage-based allowances payable to employees who work overtime, at night or in heavy or hazardous working conditions or benefits in kind for heavy or hazardous jobs and other entitlements in accordance with the labor law. Allowances, additional amounts, subsidies and bonuses provided by enterprises themselves must comply with labor contracts, collective labor agreements or enterprises’ regulations.

Article 6. Effect

1. This Decree takes effect on January 1, 2016. The Government’s Decree No. 103/2014/ND-CP of November 11, 2014, 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 on 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

* The Appendix to this Decree is not translated.-