Decree No.110/2008/ND-CP dated October 10,2008 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

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 XIth National Assembly's Resolution No. 56/2006/NQ-QH11 of June 29. 2006. on the 2006-2010 five-year socio-economic development plan;

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, organize management and operate under the State Enterprise Law.

2. One-member limited liability companies with 100% state-owned charter capital which organize management and operate under the Enterprise Law.

3. Enterprises which are established, organize management 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 paid to laborers doing simplest jobs under normal working conditions in enterprises specified in Article 1 of this Decree shall be applied from January 1,2009. according to regions as follows:

1. The level of VND 800,000/month applies to enterprises operating in localities of region I.

2. The level of VND 740,000/month applies to enterprises operating in localities of region II.

3. The level of VND 690,000/month applies to enterprises operating in localities of region III.

4. The level of VND 650.000/month applies to enterprises operating in localities of region IV.

Localities of regions I, II, III 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 twice the common minimum wage level specified in the Government's Decree No. 166/2007/ND-CP of November 16. 2007, 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 by 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 a minimum wage level 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.-

1. 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.

2. 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, 2009. To annul the Government's Decree No. 167/2007/ ND-CP of November 16, 2007, 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.

2. The Ministry of Labor, War Invalids and Social Affairs shall guide the implementation of this Decree.

Article 6.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall implement this Decree.

APPENDIX

LOCALITIES FOR APPLICATION OF REGION-BASED MINIMUM WAGE LEVELS
(Attached to the Government's Decree No. 110/ 2008/ND-CP of October 10. 2008)

1. Region I, covering the following localities:

- Urban districts and Ha Dong city of Hanoi city:

- Urban districts of Ho Chi Minh City.

2. Region II, covering the following localities:

- Gia Lam, Dong Ann, Soc Son. Thanh Tri, Tu Liem, Thuong Tin, Hoai Duc, Dan Phuong, Thach That and Quoc Oai rural districts and Son Tay city of Hanoi city;

- Rural districts of Ho Chi Minh City;

- Urban districts and Thuy Nguyen; and An Duong rural districts of Hai Phong city;

- Urban and rural districts of Da Nang city;

- Ninh Kieu and Binh Thuy urban districts of Can Tho city;

- Ha Long city of Quang Ninh province;

- Bien Hoa city, Long Khanh town and Nhon Trach, Long Thanh, Vinh Cuu and Trang Bom rural districts of Dong Nai province;

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

- Vung Tau city and Tan Thanh rural district of Ba Ria- Vung Tau province.

3. Region III, covering the following localities:

- Provincial cities (except those of region IT);

- Remaining rural districts of Hanoi city.

- Bac Ninh city, Tu Son town and Que Vo, Tien Du and Yen Phong rural districts of Bac Ninh province:

- Bac Giang city and Viet Yen and Yen Dung rural districts of Bac Giang province:

- Hung Yen town and My Hao. Van Lam. Van Giang and Yen My rural districts of Hung Yen province;

- Hai Duong city and Cam Giang. Nam Sach. Chi Linh, Kim Thanh and Kinh Mon rural districts of Hai Duong province;

- Vinh Yen city and Phuc Yen town of Vinh Phuc province;

- Remaining rural districts of Hai Phong city;

- Mong Cai city and Uong Bi and Cam-Pha towns of Quang Ninh province;

- Da Lat city and Bao Loc town of Lam Dong province;

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

- Trang Bang rural district of Tay Ninh province:

- Remaining rural districts of Binh Duong province;

- Remaining rural districts of Dong Nai province;

- Tan An town and Duc Hoa, Ben Luc and Can Duoc rural districts of Long An province;

- Remaining urban and rural districts of Can Tho city;

- Ba Ria town and Chau Duc, Long Dien, Dat Do and Xuyen Moc rural districts of Ba Ria-Vung Tau province.

4. Region IV, covering the remaining localities.