SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, November 16, 2007
PROVIDING FOR THE COMMON MINIMUM WAGE LEVEL
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, the Minister of Home Affairs and the Minister of Finance,
Article 1. To provide for the common minimum wage level of VND 540,000/month to be applied from January 1, 2008, for payment to laborers doing the simplest jobs under normal working conditions.
1. The common minimum wage level provided for in this Decree applies to:
a/ State agencies, armed forces, political organizations and socio-political organizations:
b/ Non-business units of the State; non-business units of political organizations and socio-political organizations; and non-public non-business units which are set up and operate according to law;
c/ Companies which are set up, organized, managed and operate under the Law on State Enterprises;
d/ One-member limited liability companies with 100% charter capital owned by the State, which are organized, managed and operate under the Law on Enterprises;
e/ Enterprises which are set up, organized, managed and operate under the Law on Enterprises;
f/ Vietnamese cooperatives, cooperative unions, cooperative groups, farms, households, individuals and other organizations that employ laborers.
2. The common minimum wage level provided for in this Decree does not apply to foreign-invested enterprises, foreign agencies and organizations, international organizations and foreigners in Vietnam.
Article 3. The common minimum wage level provided for in this Decree serves as a basis for:
1. Calculating wage levels in wage scales and tables, and wage-based allowances; and applying other regimes to agencies, units and organizations defined at Points a, b, c and d, Clause 1, Article 2 of this Decree according to law.
2. Calculating region-based minimum wage levels applicable to companies, enterprises, organizations and individuals defined at Points c, d, e and f, Clause 1, Article 2 of this Decree.
3. Calculating allowances to be applied from January 1, 2008, for redundant laborers under the Governments Decree No. 110/2007/ND-CPof June 26, 2007, on policies towards laborers who become redundant due to reorganization of state companies.
4. Calculating deductions and entitlements based on the common minimum wage level.
Article 4. Funds for application of the common minimum wage level provided for in this Decree to different subjects shall come from the state budget with the following sources:
1. Ten per cent (10%) savings of regular expenditures (excluding salaries and amounts of salary nature) of administrative agencies and non-business units of ministries, central agencies, provinces and centrally run cities.
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