Decree No. 70/2011/ND-CP dated August 22, 2011 of the Government providing for region-based minimum wage levels for employees of companies, enterprises, cooperatives, cooperative groups, farms, households, individuals and labor-employing agencies and organizations

THE GOVERNMENT

Decree No. 70/2011/ND-CP dated August 22, 2011 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

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Labor Code dated June 23, 1994; Law on amending and supplementing some articles of the Labor Code dated June 29, 2006;

Pursuant to the Law on EEnterprise dated November 29, 2005;

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

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

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

3. Foreign agencies and organizations, international organizations and foreign individuals in Vietnam employing laborers (excluding cases in international treaty that the Socialist Republic of Vietnam is a member having regulations different from this Decree).

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

Article 2. Region-based minimum wage levels

Providing for region-based minimum wage levels applied from October 01, 2011 to the end of December 31, 2012 as follows:

1. The level of VND 2.000.000/month applies to enterprises operating in localities of region I.

2. The level of VND 1.780.000/month applies to enterprises operating in localities of region II.

3. The level of VND 1.550.000/month applies to enterprises operating in localities of region III.

4. The level of VND 1.400.000/month applies to enterprises operating in localities of region IV.

Localities in which region-based minimum wage levels will be applied are specified in Appendices to this Decree.

Article 3. Application of region-based minimum wage levels

1. The region-based minimum wage levels specified in Article 2 of this Decree is the minimum wage levels for enterprises and laborers to take as a basis for negotiating salaries paid to laborers.

2. 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;

3. 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.

4. Based on the region-based minimum wage levels specified in Article 2 of this Decree, enterprises shall adjust wages in wage scales and tables established and issued by enterprises, wages in labor contracts accordingly to be suitable with agreements and regulations of labor laws.

5. To encourage enterprises to pay wages to laborers higher than minimum wage levels specified in Article 2 of this Decree.

Article 4. 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 5. Effect

1. This Decree takes effect on October 05, 2011.

2. To annul the Government’s Decree No. 107/2010/ND-CP dated October 29, 2010 stipulating region-based minimum wage levels for Vietnamese laborers working for foreign-invested enterprises, foreign agencies and organizations and international organizations and for foreigners in Vietnam; the 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 laborer; clause 3, Article 7 of the Decree No. 22/2011/ND-CP dated April 04, 2011 of the Government providing for the common minimum wage.

3. To encourage enterprises to hold middle-shift meals for laborers. The price of middle-shift meals is agreed between Executive Board of local union or Executive Board of provisional union and laborers to ensure the quality of laborer’s middle-shift meals.

4. 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-owned one member limited liability companies, parent companies - state economic groups, state companies not yet transformed into one-member limited liability companies or joint stock companies, organizations and units currently applying wage regimes like state companies shall continue applying wage adjustment coefficients higher than the common minimum wage levels by the Government to determine wage unit prices and wage funds managing officers from 2012 under the conditions prescribed at the Decree No. 206/2004/ND-CP and Decree No. 207/2004/ND-CP of December 24. 2004; Decree No. 86/2007/ND-CP of May 28, 2007; Decree No. 141/2007/ND-CP of September 05, 2007 of the Government and ensures that the increases in wage levels of managing officers cannot excess the increases in wage levels of laborers. The cases that cannot satisfy conditions prescribed by the Government and laborer’s wages implementing to regimes are lower than region-based minimum wage levels specified in Article 2 will be calculated to the region-based minimum wage levels specified in Article 2 of this Decree.

5. 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.

FOR THE GOVERNMENT

PRIME MINISTER

Nguyen Tan Dung

APPENDIX 1

LIST OF LOCALITIES TO APPLY REGION-BASED MINIMUM WAGE LEVELS FROM OCTOBER 01, 2011
(To the Government's Decree No. 70/2011/ND-CP of August 22, 2011)

1. Region I, covering the following localities:

- Gia Lam. Dong Anh. 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;

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

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

- Bien Hoa city, communes of Nhon Trach, Long Thanh, Vinh Cuu, Trang Bom of Dong Nai province;

- Thu Dau Mot town, and communes Thuan An, Di An, Ben Cat, Tan Uyen of Binh Duong province;

- Vung Tau city of Ba Ria – Vung Tau province.

2. Region II, covering the following localities:

- Remain communes of Hanoi city;

- Remain communes of Hai Phong city;

- Hai Duong city of Hai Duong province;

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

- Vinh Yen city, Phuc Yen town and communes Binh Xuyen, Yen Lac of Vinh Phuc province;

- Bac Ninh City, Tu Son town and communes Que Vo, Tien Du, Yen Phong, Thuan Thanh of Bac Ninh province;

- Ha Long city, Mong Cai city of Quang Ninh province;

- Thai Nguyen city of Thai Nguyen province

- Viet Tri city of Phu Tho province;

- Lao Cai city of Lao Cai province;

- Ninh Binh city of Ninh Binh province;

- Hue city of Hue province;

- Districts and communes of Da Nang city;

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

- Da Lat city, Bao Loc city of Lam Dong province;

- Phan Thiet city of Binh Thuan province;

- Remain communes of Ho Chi Minh city;

- Long Khanh town and communes Dinh Quan, Xuan Loc of Dong Nai province;

- Phu giao, Dau Tieng communes of Binh Duong province;

- Chon Thanh commune of Binh Phuoc province;

- Ba Ria town, Tan Thanh commune of Ba Ria – Vung Tau province;

- Tan An city and Duc Hoa, Ben Luc, Can Duoc, Can Giuoc communes of Long An province;

- My Tho city of Tien Giang province;

- Districts of Can Tho city;

- Rach Gia city of Kien Giang province;

- Long Xuyen city of An Giang province;

Ca Mau city of Ca Mau province;

3. Region III, covering the following localities:

- Cities in remain provinces (excluding provincial cities in region II);

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

- Vinh Tuong, Tam Dao, Tam Duong, Lap Thach, Song Lo communes of Vinh Phuc province;

- Phu Tho town and Phu Ninh, Lam Thao, Thanh Ba, Tam Nong communes of Phu Tho province;

- Gia Binh, Luong Tai communes of Bac Ninh province;

- Viet Yen, Yen Dung, Hiep Hoa, Tan Yen, Lang Giang communes of Bac Giang province;

- Uong Bi, Cam Pha towns and Hoanh Bo, Dong Trieu communes of Quang Ninh province;

- Bao Thang, Sa Pa communes of Lao Cai province;

- Remain provinces of Hung Yen province;

- My Hao, Van Lam, Van Giang, Yen My 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;

- Dak Ha commune of Kon Tum province;

- Duc Trong, Di Linh commune 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 IV, covering the remaining localities/.