Decree No. 153/2016/ND-CP dated November 14, 2016 of the Government providing on regional minimum wage rates applied to employees working under an employment contract

DECREE

Prescribing region-based minimum wage levels applicable to employees working under labor contracts[1]

Pursuant to the June 19, 2015 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 prescribing region-based minimum wage levels applicable to employees working under labor contracts.

Article 1. Scope of regulation

This Decree prescribes region-based minimum wage levels applicable to employees working under labor contracts as defined in the Labor Code.

Article 2. Subjects of application

1. Employees working under labor contracts as defined in the Labor Code.

2. Enterprises established, organized, managed and operating in accordance with the Law on Enterprises.

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

4. Vietnam-based foreign agencies and organizations, international organizations and foreigners that employ employees 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 2, 3 and 4 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 employees working in enterprises are specified as follows:

a/ VND 3,750,000/month, for enterprises operating in localities of region I;

b/ VND 3,320,000/month, for enterprises operating in localities of region II;

c/ VND 2,900,000/month, for enterprises operating in localities of region III;

d/ VND 2,580,000/month, for 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. For enterprises operating in industrial parks, export processing zones, economic zones or hi-tech parks based in localities for which different region-based minimum wage levels are prescribed, the highest among these region-based minimum wage levels shall be applied.

3. For an enterprise operating in the locality which is renamed or divided, the region-based minimum wage level prescribed for such locality before it is renamed or divided shall temporarily be applied pending the Government’s issuance of new regulations.

4. For an enterprise operating 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. For an enterprise operating in a provincial city newly established from one or more than one locality of region IV, the region-based minimum wage level prescribed for other provincial cities mentioned 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 wage levels which serve as a basis for enterprises and employees to reach agreement on and pay wages, provided that the level of wage to be paid to an employee who works in normal working conditions, ensures sufficient normal working time in a month as prescribed and fulfills labor norms or jobs as agreed must:

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

b/ Be at least 7% higher than the relevant region-based minimum wage level, for employees who perform jobs requiring trained employees as 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, diploma of professional secondary education, diploma of vocational secondary education, college diploma, certificate of completion of university’s foundation studies, university diploma, bachelor diploma, master diploma, or doctoral diploma 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 diplomas and certificates in education and training;

b/ A person who has been granted a professional secondary school graduation diploma, vocational training school graduation diploma, college graduation diploma, university graduation diploma, master diploma or doctoral diploma; vocational education diploma or certificate; higher education diploma or continuing education diploma or certificate as prescribed in 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, vocational secondary school graduation diploma or vocational college graduation diploma, or who has completed a vocational training program under a vocational training contract as prescribed in the Law on Vocational Training;

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

dd/ A person who has been granted a diploma or certificate of vocational education of elementary, secondary or collegial degree or received continuing vocational training or otherwise vocational training in accordance with the Law on Vocational Education;

e/ A person who has been granted a graduation diploma of higher education in accordance with the Law on Higher Education;

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

h/ A person who has received vocational training from his/her enterprise or has his/her self-trained vocational skills tested by the enterprise before being assigned 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 and employees, reach agreement on and determine appropriate adjustments of wage levels in the wage table or wage scale, wage levels stated in labor contracts and wage levels payable to employees, ensuring compliance with the labor law and reasonable wage differences between untrained and trained employees and employees with high professional and technical qualifications and between junior and senior employees in enterprises.

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 stipulated by enterprises themselves must comply with those agreed in labor contracts, collective labor agreements or enterprises’ regulations.

Article 6. Effect

1. This Decree takes effect on January 1, 2017. The Government’s Decree No. 122/2015/ND-CP of November 14, 2015, prescribing region-based minimum wage levels for employees working for enterprises, cooperatives, cooperative groups, farms, households or individuals and employing agencies and organizations, ceases 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 employees and employers with information on, and inspecting and supervising the application of, the region-based minimum wage levels specified in this Decree; and propose 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 XUAN PHUC

Appendix

LIST OF LOCALITIES APPLYING REGION-BASED MINIMUM WAGE LEVELS FROM JANUARY 1, 2017

(To the Government’s Decree No. 153/2016/ND-CP of November 14, 2016)

1. Region I, embracing the following localities:

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

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

- Urban districts and rural districts of Cu Chi, Hoc Mon, Binh Chanh and Nha Be 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 and Tan Thanh rural district of Ba Ria-Vung Tau province.

2. Region II, embracing the following localities:

- The remaining rural districts of Hanoi city;

- The 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 and Song Cong cities and Pho Yen town 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;

- Hoi An city of Quang Nam province;

- Urban districts 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;

- The remaining rural districts of Binh Duong province;

- Dong Xoai town and Chon Thanh rural district of Binh Phuoc province;

- Ba Ria city 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 and Chau Doc cities of An Giang province;

- Tra Vinh city of Tra Vinh province;

- Ca Mau city of Ca Mau province.

3. Region III, embracing the following localities:

- The remaining provincial cities (except provincial cities specified in 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;

- Rural districts of Vinh Tuong, Tam Dao, Tam Duong, Lap Thach and Song Lo 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;

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

- Quang Yen and Dong Trieu towns and Hoanh Bo rural district of Quang Ninh province;

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

- The remaining rural districts of Hung Yen province;

- Phu Binh, Phu Luong, Dong Hy and Dai Tu rural districts of Thai Nguyen province;

- The remaining rural districts of Nam Dinh province;

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

- 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 town 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 town and Dai Loc, Duy Xuyen, Nui Thanh, Que Son and Thang Binh 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;

- The remaining rural districts of Tay Ninh province;

- The 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 and Cai Lay towns and Chau Thanh and Cho Gao rural districts 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 and Chau Thanh rural districts of Kien Giang province;

- Tan Chau town and Chau Phu, Chau Thanh and Thoai Son rural districts of An Giang province;

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

- Duyen Hai town of Tra Vinh province;

- Gia Rai town of Bac Lieu province;

- Vinh Chau and Nga Nam towns of Soc Trang province;

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

4. Region IV, embracing the remaining localities.