SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, September 07, 2006
ADJUSTING 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 and the April 2, 2002 Law Amending and Supplementing a Number of Articles of the Labor Code;
Pursuant to the Government's Decree No. 203/2004/ND-CP of December 14, 2004, providing for the minimum wage level;
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.- From October 1, 2006, the common minimum wage level shall be raised to VND 450,000 per month from VND 350,000 per month as provided for in Article 1 of the Government's Decree No. 118/2005/ND-CP of September 15, 2005.
Article 2.- The common minimum wage level specified in Article 1 of this Decree shall be used as the basis for adjustment of pensions, social insurance allowances and monthly allowances for commune officials who had ceased working, and for the calculation of severance allowances, deductions and other entitlements calculated based on the common minimum wage as follows:
1. To increase by 28.6% pensions, social insurance allowances and monthly allowances already adjusted under the Government's Decree No. 93/2006/ND-CP of September 7, 2006, adjusting pensions, social insurance allowances and monthly allowances for commune officials who had ceased working.
2. To increase the September 2006 allowances by 28.6% for those who enjoy monthly social insurance allowances calculated on the basis of the common minimum wage level.
3. To calculate severance allowances paid on the basis of the number of working months from October 1, 2006 onward to redundant laborers under the Government's Decree No. 41/2002/ND-CP of April 11, 2002, on policies towards laborers who become redundant due to the reorganization of state enterprises, Decree No. 155/2004/ND-CP of August 10, 2004, amending and supplementing Decree No. 41/2002/ND-CP, and Resolution No. 06/2006/NQ-CP of May 4, 2006, on the Government's April 2006 regular meeting.
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