Laws of Vietnam

In furtherance of Clause 1, Article 1 of the Government’s Decree No. 77/2000/ND-CP of December 15, 2000 adjusting the minimum wage level, allowance level and cost-of-living allowances for subjects enjoying wages, allowances and cost-of-living allowances, the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance hereby guide the adjustment of minimum wage and allowances in enterprises as follows:

I. OBJECTS OF APPLICATION:

- Laborers working in enterprises which operate under the Law on State Enterprises, including: enterprises engaged in production and business activities; public-utility enterprises; enterprises of the armed forces, organizations and units of administrative and public-service agencies, as well as of the Party, associations and self-financing mass organizations, which are licensed to conduct production, business and/or service activities;

- Laborers working in enterprises which operate under the Enterprises Law, including: joint stock companies, limited liability companies, partnerships, and private enterprises;

(The above-mentioned organizations are called enterprises for short)

II. METHOD FOR RE-CALCULATING WAGE LEVELS:

1. For enterprises which are applying the wage scales, wage tables and wage allowances issued by the State, on the basis of the wage coefficients and wage allowance coefficients stipulated in the Government’s Decrees No. 25/CP and 26/CP of May 23, 1993, Decree No. 110/1997/ND-CP of November 18, 1997 and the minimum wage level specified in Clause 1, Article 1 of the Government’ Decree No. 77/2000/ND-CP of December 15, 2000, the wage levels and wage allowance levels, which serve as basis for calculation of social insurance and health insurance regimes as well as payment for overtime work, night work, work stoppage, annual leaves and other regimes as prescribed by the State, shall be re-calculated as follows:

a) Re-calculating the wage levels:

b) Re-calculating the allowance levels:

- For the allowances calculated upon the minimum wage:

- For the allowances calculated upon ranks, positions and professions:

c) Re-calculating wage levels of reserved difference coefficients:

d) For branches where rewards, as stipulated by the State, are included in their wage fund, such rewards shall be re-calculated according to the minimum wage level of 210,000 dong/month.

2. For State enterprises, when applying the increase regulating coefficient by not more than 1,5 times of the common minimum wage level prescribed by the State (210,000 dong/month as from January 1, 2001) as basis for calculation of wage unit prices, they must satisfy the conditions prescribed in Article 1 of the Government’s Decree No. 28/CP of March 28, 1997 and in Circular No. 13/LDTBXH-TT of April 10, 1997 of the Ministry of Labor, War Invalids and Social Affairs guiding methods for formulating wage unit prices and managing wages and incomes in State enterprises.

3. For enterprises, which have formulated their wage scales and wage tables according to labor legislation, based on the minimum wage level of 210,000 dong/month, they shall recalculate the wage levels inscribed in labor contracts, and recalculate social insurance and health insurance regimes, as well as payment for overtime work, night work, work stoppage, annual leave, and other regimes as prescribed by the State.

4. The levels for mid-shift meals calculated according to working days of month applicable to workers and employees working in State enterprises as stipulated in Circular No. 15/1999/TT-BLDTBXH of June 22, 1999 of the Ministry of Labor, War Invalids and Social Affairs shall not exceed the minimum wage level of 210,000 dong/month as from January 1, 2001.

III. IMPLEMENTATION ORGANIZATION

1. The branch- and domain-managing ministries, the People’s Committees of the provinces and centrally-run cities, and the chairmen of 91/TTg Corporations’ Managing Boards shall have to direct and urge enterprises to strictly comply with the provisions of this Circular.

2. The State enterprises, when determining wage unit prices and calculating mid-shift meal according to the minimum wage level of 210,000 dong/month, shall include in their annual production and business objectives and plans active measures to raise the labor productivity and efficiency, to link the increase of laborers’ incomes to the increase of profits and contributions to the State as prescribed by various documents.

3. This Circular takes effect as from January 1, 2001. The previous regulations contrary to the provisions in this Circular are hereby annulled.

In the course of implementation, if problems arise, the branch- and domain-managing ministries, the People’s Committees of the provinces and centrally-run cities and enterprises are requested to report them to the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance for consideration and settlement.

For the Minister
of Labor, War Invalids and Social Affairs
Vice Minister
LE DUY DONG

For the Minister of Finance
Vice Minister
TRAN VAN TA