Laws of Vietnam

No: 22/2011/ND-CP

Ha Noi, day 04 month 04 year 2011                          

DECREE

PROVIDING FOR THE COMMON MINIMUM WAGE

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; 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. 52/2010/QH12 of November 10, 2010, on the 2011 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,

DECREES:

Article 1. To provide for the common minimum wage of VND 830,000/month, to be applied from May 1, 2011.

Article 2. 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. 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 a number of other regimes established by law towards 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, 2011, onward, 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 deductions and entitlements of wage earners based on the common minimum wage.

Article 4. The state budget shall assure funds for applying the common minimum wage provided for in this Decree from the following sources:

1. Saving of 10% of the regular expenditure (except wage and amounts of wage nature) in accordance with the estimates assigned in 2011 by authorities to administrative agencies and non-business units.

2. Use of at least 40% of revenues permitted to be retained in 2011 at revenue-generating administrative agencies and non-business units under regulations. Use of at least 35% of revenues permitted to be retained at non-business units of the health sector under regulations (after deducting expenses for medicines, blood, infusion fluid, chemicals, consumed supplies and substitute supplies).

3. Use of 50% of increased revenues in comparison with the 2010 estimates of local budgets.

4. The state budget funds for the wage reform that remain unused by the end of 2010 of administrative agencies, non-business units and local budgets at all levels.

5. The central budget shall assure:

a) Additional funds for ministries, central agencies, provinces and centrally run cities, which have complied with Clauses 1 thru 4 of this Article, but still need funds for paying wages based on the common minimum wage.

b) Supports for difficulty-hit localities which cannot acquire sources to pay wages at the average level 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.

Article 5. Funds for applying the common minimum wage to employees of companies specified in Clause 3 of Article 2 shall be provided by these companies and may be accounted into their product costs or production or business expenses.

Article 6. 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 concerned 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 the Government’s 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 concerned 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 reaching agreement with 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 concerned ministries and sectors in:

a) Guiding the estimation and balancing of funds for applying the common minimum wage under 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 to cases specified at Point a, Clause 5, Article 4 of this Decree, ensuring targeted additional funds for difficulty-hit localities specified at Point b, Clause 5, Article 4 of this Decree, and reviewing the implementation for reporting to the Prime Minister.

Article 7. Effect

1. This Decree takes effect on May 19, 2011.

Entitlements provided for in this Decree apply from May 1, 2011.

2. To annul the Government’s Decree No. 28/2010/ND-CP of March 25, 2010, providing for the common minimum wage.

3. Companies and organizations specified in Clause 3, Article 6 of the Government’s Decree No. 108/2010/ND-CP of October 29, 2010, may apply the common minimum wage provided for in this Decree to calculate the wage unit, and if satisfying the conditions specified in Article 4 of the Government’s Decree No. 206/2004/ND-CP of December 14, 2004, may apply a wage increase coefficient not exceeding 1.1 times the common minimum wage. If they satisfy the conditions specified 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 realized in the preceding year, they may apply a wage increase coefficient not exceeding 1.7 times the common minimum wage.

Article 8. Ministers, heads of ministerial-level agencies and government- attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.