Decree No. 28/2010/ND-CP dated March 25, 2010 of the Government prescribing the common minimum wage level

DECREE

PRESCRIBING THE COMMON MINIMUM WAGE LEVEL

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; the November 29, 2006 Law Amending and Supplementing a Number of Articles of the Labor Code; and the April 2, 2007 Law Amending and Supplementing Article 73 of the Labor Code;

Pursuant to the XI^th National Assembly's Resolution No. 56/2006/NQ-QH11 of June 29, 2006, on the five-year socio-economic development plan in the 2006-2010 period;

At the proposal of the Minister of Labor, War Invalids and Social Affairs, the Minister of Home Affairs and the Minister of Finance,

DECREES:

Article 1. To prescribe the common minimum wage level of VND 730,000/month, to be applied from May 1, 2010.

Article 2. The common minimum wage level set in this Decree applies to:

1. State agencies, armed forces, political organizations and socio-political organizations;

2. Non-business units of the State; non­-business units of political organizations and socio-political organizations; and non-public non-business units established and operating under law;

3. Companies which are established organized and managed and operate under the State Enterprise Law;

4. One-member limited liability companies with 100% state-owned charter capital which are organized and managed and operate under the Enterprise Law.

Article 3. The common minimum wage level set in this Decree is used as a basis for:

1. Calculating wage levels in the system of wage scales, wage tables and wage allowance levels and implementing a number of other regimes under law at agencies, units and organizations specified in Article 2 of this Decree.

2. Calculating allowances from May 1,2010, onward for laid-off laborers under the Government's Decree No. 110/2007/ND-CP of June 26, 2007, on policies applicable to laborers laid-off in the reorganization of state companies.

3. Calculating deductions and entitlements calculated based on the common minimum wage level.

Article 4. The state budget shall assure funds to apply the common minimum wage level set in this Decree from the following sources:

1. Saving of 10% of the funds for regular spending (except salaries and amounts of salary nature) by each administrative agency and non-­business unit of ministries, central agencies and provinces and centrally run cities.

2. Use of at least 40% of revenues permitted to be left at income-generating non-business units according to regulations. Use of at least 35% of revenues permitted to be left at non-business units of the health sector according to regulations (after deducting expenses for medicines, blood, infusion fluid, chemicals, consumed supplies and substitute supplies).

3. Use of at least 40% of revenues permitted to be left at income-generating administrative agencies.

4. Use of 50% of increased local budget revenues.

5. The central budget shall assure:

a/ Additional funds for ministries, central agencies and provinces and centrally run cities which have complied with Clauses 1, 2, 3 and 4 of this Article, but still lack funds to apply the common minimum wage level;

b/ Support for difficulty-hit localities which cannot balance funds at the average two-thirds of the common minimum wage level for part-time cadres of communes, wards, townships, villages and street quarters as identified under the Government's Decree No. 92/2009/ND-CP of October 22, 2009.

Article 5. Funds to apply the common minimum wage level for laborers working at companies specified in Clauses 3 and 4 of Article 2 shall be ensured by those companies and may be accounted into their product costs or production and business expenses.

Article 6. Implementation guidance responsibilities

1. The Ministry of Labor, War Invalids and Social Affairs shall, after consulting the Vietnam General Confederation of Labor, representatives of employers and concerned ministries and branches, propose the Government to adjust the common minimum wage level in each period; guide the application of the common minimum wage level applicable to companies specified in Clauses 3 and 4, Article 2 of this Decree; and guide the calculation of allowances specified in Clause 2, Article 3 of this Decree applicable to laid-off laborers under Decree No. 110/2007/ND-CP of June 26, 2007.

2. The Ministry of Home Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Finance and concerned ministries and branches in, guiding the application of the common minimum wage level to agencies, units and organizations specified in Clauses 1 and 2, Article 2 of this Decree.

3. After reaching agreement with the Ministry of Home Affairs and the Ministry of Finance, the Ministry of National Defense and the Ministry of Public Security shall guide the application of the common minimum wage level to subjects under their management.

The Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned ministries and branches in:

a/ Guiding the estimation and balance of funds to apply the common minimum wage level under Article 4 of this Decree;

b/ Evaluating and supplementing funds for ministries, central agencies and provinces and centrally run cities to apply the common minimum wage level for cases specified at Point a, Clause 5, Article 4 of this Decree, ensuring targeted additional funds for difficulty-hit localities specified at Point b. Clause 5, Article 4 of this Decree, and reviewing implementation results for reporting to the Prime Minister.

Article 7. Effect

1. This Decree takes effect on May 10, 2010.

Entitlements regulated by this Decree apply on May 1, 2010.

2. To annul the Government's Decree No. 33/ 2009/ND-CP of April 6, 2009, prescribing the common minimum wage level.

3. To replace Clause 1, Article 3 of the Government's Decree No. 97/2009/ND-CP of October 30, 2009 prescribing region-based minimum wage levels for laborers working for Vietnamese companies, enterprises, cooperatives, cooperative groups, farms, households and individuals and other Vietnamese organizations employing laborers, as follows:

"1. Enterprises specified in Clauses 1 and 2, Article 1 of this Decree shall apply the region-based minimum wage levels prescribed in Article 2 of this Decree for calculating the wage unit price.

Enterprises specified in Clause 1, Article 1 of this Decree which satisfy the conditions specified in Article 4 of the Government's Decree No. 206/2004/ND-CP of December 14, 2004, providing the management of laborers, wages and incomes in state companies, may apply a wage increase coefficient which must not exceed 1.1 times the common minimum wage level; when satisfying the conditions specified in Article 4 of the Government's Decree No. 206/ 2004/ND-CP and have a planned profit at least 5% higher than the profit realized in the preceding year, they may apply a wage increase coefficient which must not exceed 1.7 times the common minimum wage level for calculating the wage unit price."

Article 8. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People's Committees shall implement this Decree.-

ON BEHALF OF THE GOVERNMENT

PRIME MINISTER

NGUYEN TAN DUNG