Decree No. 31/2012/ND-CP dated April 12, 2012 of the Government providing for the common minimum wage

THE GOVERNMENT

Decree No. 31/2012/ND-CP of April 12, 2012, providing for the common minimum wage

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 June 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 National Assembly’s Resolution No. 14/2011/QH13 of November 10, 2011, on the 2012 state budget estimates;

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

The Government issues the Decree providing for the common minimum wage,

Article 1. The common minimum wage

The common minimum wage is VND 1,050,000/month, to be applied from May 1, 2012.

Article 2. Subjects and scope of application

The common minimum wage provided for in this Decree applies to cadres, civil servants, public employees, armed forces servicemen and employees of agencies, units and organizations:

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.

3. State-owned one-member limited liability companies which are organized and managed and operate under the Enterprise Law.

Article 3. Application of the common minimum wage

The common minimum wage provided for in this Decree is used as a basis for:

1. Calculating wage levels in the system of wage scales, wage payrolls and wage-based allowance levels, and implementing some other regimes established by law toward cadres, civil servants, public employees, armed forces servicemen and employees of agencies, units and organizations specified in Article 2 of this Decree.

2. Calculating allowances from May 1, 2012 on, for redundant laborers under the Government’s Decree No. 91/2010/ND-CP of August 20, 2010, providing for the policy for redundant laborers upon reorganizing state-owned one-member liability limited companies.

3. Calculating wage earners’ deductions and entitlements based on the common minimum wage.

Article 4. Funds for applying the common minimum wage

1.  The state budget shall assure funds for applying the common minimum wage from the following sources:

a/ Saving of 10% of regular expenditures (except wage and amounts of wage nature) in accordance with the estimates assigned in 2012 by competent authorities to administrative agencies and non-business units;

b/ Use of at least 40% of revenues permitted to be retained under regulations in 2012 at revenue-generating administrative agencies and non-business units. Use of at least 35% of revenues permitted to be retained under regulations at non-business units of the health sector (after deducting expenses for medicines, blood, infusion fluid, chemicals, consumed supplies and substitute supplies);

c/ Use of 50% of increased revenues of local budgets, exclusive of increased land use levies (including 50% of increased revenues over the 2011 revenue estimates assigned by the Prime Minister and 50% of increased revenues of the 2012 estimates over the 2011 revenue estimates assigned by the Prime Minister);

d/ The state budget funds for the wage reform that remain unused by the end of 2011 at administrative agencies, non-business units and local budgets at all levels;

e/ The central budget shall add funds for ministries, central agencies, provinces and centrally run cities which have complied with Points a, b, c and d, Clause 1 of this Article, but still lack funds for paying wages based on the common minimum wage;

f/ The central budget shall support difficulty-hit localities which cannot acquire sources to pay wages at an average of two-thirds of the common minimum wage for part-time cadres of communes, wards, townships, villages and street quarters as identified in the Government’s Decree No. 92/2009/ND-CP of October 22, 2009.

2. Funds for applying the common minimum wage to employees of companies specified in Clause 3 of Article 2 shall be ensured by these companies and may be accounted into their product costs or production or business expenses.

Article 5. 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 related ministries and sectors, guide the application of the common minimum wage to state-owned one-member limited liability companies; and guide the calculation of allowances specified in Clause 2, Article 3 of this Decree applicable to redundant laborers under Decree No. 91/2010/ND-CP of August 20, 2010.

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

3. After consulting 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 to their personnel.

4. The Ministry of Finance shall assume the prime responsibility for, and coordinate with related ministries and sectors in:

a/ Guiding the estimation and balancing of funds for applying the common minimum wage under Clause 1, Article 4 of this Decree.

b/ Appraising and adding funds for ministries, central agencies, provinces and centrally run cities to apply the common minimum wage in the cases specified at Point e Clause 1, Article 4 of this Decree, ensuring targeted additional funds for difficulty-hit localities specified at Point f, Clause 1, Article 4 of this Decree, and reviewing the implementation for reporting to the Prime Minister.

Article 6. Effect

1. This Decree takes effect on June 1, 2012.

Entitlements provided for in this Decree apply from May 1, 2012.

2. To annul the Government’s Decree No. 22/2011/ND-CP of April 4, 2011, providing for the common minimum wage.

Article 7. Organization of implementation

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