Decree No. 97/2009/ND-CP dated October 30, 2009 of the Government 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

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Decree No. 97/2009/ND-CP dated October 30, 2009 of the Government 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
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Official number:97/2009/ND-CPSigner:Nguyen Tan Dung
Type:DecreeExpiry date:
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Issuing date:30/10/2009Effect status:
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Fields:Enterprise , Labor - Salary , Others
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THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 97/2009/ND-CP
Hanoi, October 30, 2009
 DECREE
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
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; and the June 29, 2006 Law Amending and Supplementing a Number of Articles of the Labor Code;
Pursuant to the XII 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,
DECREES:
Article 1. To prescribe region-based minimum wage levels to be applied to:
1. Companies which are established and organized and operate under the State Enterprise Law.
2. One-member limited liability companies with 100% state-owned charter capital which are organized and operate under the Enterprise Law.
3. Enterprises which are established and organized and operate under the Enterprise Law (excluding foreign-invested enterprises).
4. Vietnamese cooperatives, cooperative unions, cooperative groups, farms, households and individuals and other Vietnamese organizations employing laborers.
Companies, enterprises, organizations and individuals specified in Clauses 1, 2. 3 and 4 of this Article are collectively referred to as enterprises.
Article 2. Region-based minimum wage levels for payment to laborers doing simplest jobs under normal working conditions at enterprises specified in Article 1 of this Decree shall be applied from January 1. 2010, according to regions as follows:
1. The level of VND 980,000/month applies to enterprises operating in localities of region 1.
2. The level of VND 880,000/month applies to enterprises operating in localities of region II.
3. The level of VND 810,000/month applies to enterprises operating in localities of region III.
4. The level of VND 730,000/month applies to enterprises operating in localities of region IV.
Localities of regions I, II, Ill and IV are specified in the Appendix to this Decree.
Article 3.
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 determining the wage unit price.
Enterprises specified in Clause 1. Article 1 of this Decree which satisfy the conditions prescribed in Article 4 of the Government's Decree No. 206/2004/ND-CP of December 14, 2004. providing for management of laborers, wages and incomes in state companies, may apply a wage increase coefficient which must not exceed 1.34 times the common minimum wage level; when they satisfy the conditions prescribed 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 earned in the preceding year, they may apply a wage increase coefficient which must not exceed 2 times the common minimum wage level specified in the Government's Decree No. 33/ 2009/ND-CP of April 6, 2009, for determining the wage unit price.
2. For enterprises specified in Clauses 3 and 4. Article 1 of this Decree:
a/ To apply the region-based minimum wage levels specified in Article 2 of this Decree for determining wage levels in wage scales and tables and all kinds of wage allowances, and wage levels specified in labor contracts, and implement other policies adopted and issued b\ enterprises according to their competence prescribed by the labor law:
b/ The lowest wage level paid to laborers who have received vocational training (including laborers trained by enterprises themselves) must be at least 7% higher than the region-based minimum wage levels specified in Article 2 of this Decree:
c/ Enterprises are encouraged to apply minimum wage levels higher than the region-based minimum wage levels specified in Article 2 of this Decree;
d/ On the basis of the region-based minimum wage levels specified in Article 2 of this Decree, enterprises shall adjust salaries in labor contracts accordingly.
Article 4.
The region-based minimum wage levels specified in Article 2 of this Decree may be adjusted depending on the economic growth rate, cost-of-living index and labor supply-demand in each period.
The Ministry of Labor, War Invalids and Social Affairs shall, after consulting the Vietnam General Labor Confederation, representatives of employers and concerned ministries and branches, propose the Government to adjust the region-based minimum wage levels specified in Article 2 of this Decree.
Article 5.
1. This Decree takes effect on January 1, 2010.
2. To annul the Government's Decree No. 110/2008/ND-CP of October 10, 2008, 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.

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