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DECREE 122/2015/NĐ-CP dated Nov 14, 2015 on Regulating Region-Based Minimum Wages

DECREE 122/2015/NĐ-CP dated Nov 14, 2015 on Regulating Region-Based Minimum Wages For Employees Working For Companies, Cooperative Unions, Cooperatives, Cooperative Groups, Farms, Households, Individuals And Organizations Hiring Employees Under Labor Contracts

THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness  
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No.: 122/2015/NĐ-CP

Hanoi, November 14, 2015

 

DECREE

REGULATING REGION-BASED MINIMUM WAGES FOR EMPLOYEES WORKING FOR COMPANIES,COOPERATIVE UNIONS, COOPERATIVES, COOPERATIVE GROUPS, FARMS, HOUSEHOLDS, INDIVIDUALS AND ORGANIZATIONS HIRING EMPLOYEES UNDER LABOR CONTRACTS

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Labor Code dated June 18, 2012;

Pursuant to the Law on Enterprise dated November 26, 2014;

At the request of the Minister of Labor, War Invalids and Social Affairs

The Government promulgates the Decree regulating region-based minimum wages for employees working for companies, cooperative unions, cooperatives, cooperative groups, farms, households, individuals and organizations hiring employees under labor contracts.

Article 1. Scope of regulation

This Decree regulates region-based minimum wages for employees working for companies, cooperative unions, cooperatives, cooperative groups, farms, households, individuals and organizations hiring employees under labor contracts according to regulations in the Labor Code.

Article 2. Regulated entities

1. Every enterprise established, organized and operating under the Law on Enterprise.

2. Vietnamese cooperatives, cooperative unions, cooperative groups, farms, households, individuals and other organizations hiring employees under labor contracts.

3. Foreign organizations, international organizations and foreigners in Vietnam hiring employees under labor contracts (excluding the international agreements to which the Socialist Republic of Vietnam is a signatory which have different regulations from those of this Decree).

Companies, cooperatives, cooperative unions, cooperative groups, farms, households, organizations and individuals prescribed in Clauses 1, 2 and 3 of this Article, hereinafter referred to as enterprises.

Article 3. Region-based minimum wages

1. Region-based minimum wages shall be applied as follows:

a) VND 3,500,000/month shall be applied to enterprises operating in region I.

b) VND 3,100,000/month shall be applied to enterprises operating in region II.

c) VND 2,700,000/month shall be applied to enterprises operating in region III.

d) VND 2,400,000/month shall be applied to enterprises operating in region IV.

2. Administrative divisions of regions I, II, III and IV are prescribed in the Appendix enclosed with this Decree.

Article 4. Applied regulations on region-based minimum wages

1. Region-based minimum wages shall be applied to every enterprise according to the administrative division in which the enterprise is operating. If the enterprise has affiliates, branches operating in different administrative divisions with different region-based minimum wages, region-based minimum wage shall be applied according to the administrative division in which the affiliate or branch is operating.

2. The highest region-based minimum wage shall be applied to every enterprise operating in industrial zones, export-processing zones in administrative divisions with different region-based minimum wages.

3. If an enterprise operates in the administrative division that is renamed or divided, region-based minimum wages will be temporarily applied as before the change or division until there is new provision by the Government.

4. The highest region-based minimum wage shall be applied to enterprise operating in one or more new-established administrative divisions with different region-based minimum wages.  If an enterprise operates in a city affiliated to province which is established from one or more administrative divisions of region IV, the region-based minimum wage for the remaining provincial cities prescribed in Section 3 of the Appendix enclosed with this Decree shall be applied.

Article 5. Application of region-based minimum wages

1. Region-based minimum wages specified in Article 3 of this Decree shall be used as a basis for wage agreement between the employer and the employee in which the wage paid to employees working in normal conditions, satisfying normal working hours per month and completing agreed works must:

a) not be lower than region-based minimum wages for untrained workers doing the simplest tasks;

b) be higher than at least 7% of region-based minimum wages for trained workers prescribed in Clause 2 of this Article.

2. A trained worker is:

a) A person who has been granted a vocational training certificate, vocational training degree, junior college degree, vocational high school degree, college degree, certificate of foundation degree, bachelor degree, master’s degree or doctorate degree according to regulations in Decree No. 90/CP dated November 24, 1993 by the Government on regulating the structure of the national education system, the administration system of degree and diploma in education and training;

b) A person who has been granted a junior college graduation degree, graduation degree of vocational training, college graduation degree, university graduation degree, master’s degree, doctorate degree; vocational education certificate; higher education diploma or a continuing education diploma/certificate according to regulations in the Law on Education 1998 and the Law on Education 2005;

c) A person who has been granted the certificate under the regular vocational programs, primary vocational training certificate, vocational associate degree, vocational college degree or has completed vocational programs under vocational contracts prescribed in the Law on Vocational Training;

d) A person who has been granted a certificate of national occupational skills according to regulations in the Law on Employment;

dd) A person who has been granted a diploma/certificate of vocational education at primary/secondary/college level; continuing training and other vocational training program according to regulations in the Law on Vocational education;

e) A person who has been granted a graduation degree at higher education level according to regulations in the Law on Higher education;

g) A person who has been granted a diploma/certificate from a foreign training institution;

h) A person who has been given vocational training by the company or undergone vocational training himself/herself, tested by the company, and assigned to do the tasks requiring vocational training.

3. Pursuant to region-based minimum wages prescribed in Article 3 of this Decree and agreements in labor contract with the employee, collective bargaining agreement or regulations of the enterprise, the enterprise shall cooperate with trade union executive board and the employee to deal and adjust wages in the wage scale, wage recorded in labor contract and wage paid to the employee to satisfy the provisions of labor law and the logical wage correlation between untrained employee, trained employee, the employee with high technical and professional qualification, between the newly recruited employee and experienced one.

4. When applying the region-based minimum wages prescribed in this Decree, enterprise must not remove or reduce the payments for working overtime, working at night or working in hazardous, hard conditions, perquisites for heavy, hazardous positions and other benefits in accordance with the labor law. Allowances, additions, subsidies and bonuses regulated by the enterprise shall be provided according to labor contract, collective bargaining agreement or the enterprise’s regulations.

Article 6. Effect

1. This Decree comes into effect from January 01, 2016. Decree No. 103/2014/NĐ-CP dated November 11, 2014 by the Government regulating region-based minimum wages for employees working for companies, , cooperatives, cooperative groups, farms, households, individuals and organizations hiring employees under labor contracts expires on the date of effect of this Decree.

2. The Ministry of Labor, War invalids and Social Affairs shall take charge and cooperate with Vietnam General Confederation of Labor, Vietnam Chamber of Commerce and Industry, the Vietnam Cooperative Alliance, Vietnam Association of Small and Medium Enterprises, relevant Ministries, agencies and People's Committees of provinces in propagating to employees, employers and examine, supervise the implementation of region-based minimum wages prescribed in this Decree; request the Government to consider, adjust applicable region-based minimum wages.

3. Ministers, Heads of Ministerial-level agencies, Heads of Governmental agencies, Chairman/Chairwoman of People’s committees of provinces and organizations, enterprises shall implement this Decree./.

 

 

 

ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER




Nguyen Tan Dung

 

APPENDIX

LIST OF ADMINISTRATIVE DIVISIONS APPLIED THE REGION-BASED MINIMUM WAGES FROM JANUARY 01, 2016
(Enclosed with Decree No. 122/2015/NĐ-CP dated November 14, 2015 by the Government)

1. Region I covers the following administrative divisions:

- Gia Lam, Dong Anh, Soc Son, Thanh Tri, Thuong Tin, Hoai Duc, Thach That, Quoc Oai, Thanh Oai, Me Linh, Chuong My district and Son Tay town of Hanoi City;

- Thuy Nguyen, An Duong, An Lao and Vinh Bao district of Hai Phong City;

- Cu Chi, Hoc Mon, Binh Chanh and Nha Be district of Ho Chi Minh City;

- Bien Hoa City, Nhon Trach, Long Thanh, Vinh Cuu and Trang Bom district of Dong Nai Province;

- Thu Dau Mot City, Thuan An, Di An, Ben Cat and Tan Uyen town, Bau Bang and Bac Tan Uyen district of Binh Duong province;

- Vung Tau City of Ba Ria – Vung Tau province.

2. Region II covers the following administrative divisions:

- The remaining districts of Hanoi City;

- The remaining districts of Hai Phong City;

- Hai Duong City of Hai Duong province;

- Hung Yen City, My Hao, Van Lam, Van Giang and Yen My district of Hung Yen province;

- Vinh Yen City, Phuc Yen town, Binh Xuyen and Yen Lac district of Vinh Phuc province;

- Bac Ninh City, Tu Son town, Que Vo, Tien Du, Yen Phong and Thuan Thanh district of Bac Ninh province;

- Ha Long,Cam Pha, Uong Bi and Mong Cai city of Quang Ninh province;

- Thai Nguyen City of Thai Nguyen province;

- Viet Tri City of Phu Tho province;

- Lao Cai City of Lao Cai province;

- Nam Dinh city and My Loc district of Nam Dinh Province;

- Ninh Binh City of Ninh Binh province;

- Hue city of Thua Thien – Hue province;

- Districts of Da Nang city;

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

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

- Phan Thiet City of Binh Thuan Province;

- Can Gio district of Ho Chi Minh City;

- Tay Ninh city, Trang Bang and Go Dau district of Tay Ninh province;

- Long Khanh town, Dinh Quan and Xuan Loc district of Dong Nai province;

- The remaining districts of Binh Duong province;

- Dong Xoai town and Chon Thanh district of Binh Phuoc province;

- Ba Ria City and Tan Thanh district of Ba Ria – Vung Tau province;

- Tan An City, Duc Hoa, Ben Luc, Can Duoc and Can Giuoc district of Long An province;

- My Tho City of Tien Giang province;

- Districts of Can Tho City;

- Rach Gia City, Ha Tien town and Phu Quoc district of Kien Giang province;

- Long Xuyen and Chau Doc City of An Giang province;

- Ca Mau City of Ca Mau province;

3. Region III covers the following administrative divisions:

- The remaining provincial cities (except those of region I and region II);

- Chi Linh town, Cam Giang, Nam Sach, Kim Thanh, Kinh Mon, Gia Loc, Binh Giang and Tu Ky district of Hai Duong province;

- Vinh Tuong, Tam Dao, Tam Duong, Lap Thach and Song Lo district of Vinh Phuc province;

- Phu Tho town, Phu Ninh, Lam Thao, Thanh Ba and Tam Nong district of Phu Tho province;

- Gia Binh and Luong Tai district of Bac Ninh province;

- Viet Yen, Yen Dung, Hiep Hoa, Tan Yen and Lang Giang district of Bac Giang province;

- Quang Yen, Dong Trieu town and Hoanh Bo district of Quang Ninh province;

- Bao Thang and Sa Pa district of Lao Cai province;

- The remaining districts of Hung Yen province;

- Pho Yen town and Phu Binh, Phu Luong, Dong Hy and Dai Tu district of Thai Nguyen province;

- The remaining districts of Nam Dinh province;

- Duy Tien and Kim Bang district of Ha Nam province;

- Gia Vien, Yen Khanh and Hoa Lu district of Ninh Binh province;

- Luong Son district of Hoa Binh province;

- Bim Son town and Tinh Gia district of Thanh Hoa province;

- Ky Anh town of Ha Tinh;

- Huong Thuy, Huong Tra town, Phu Loc, Phong Dien, Quang Dien and Phu Vang district of Thua Thien- Hua province;

- Dien Ban town and Dai Loc, Duy Xuyen and Nui Thanh district of Quang Nam province;

- Binh Son and Son Tinh district of Quang Ngai province;

- Song Cau town and Dong Hoa district of Phu Yen province;

- Ninh Hai and Thuan Bac district of Ninh Thuan province;

- Ninh Hoa town, Cam Lam, Dien Khanh and Van Ninh district of Khanh Hoa province;

- Dak Ha district of Kon Tum province;

- Duc Trong and Di Linh district of Lam Dong province;

- La Gi town, Ham Thuan Bac and Ham Thuan Nam district of Binh Thuan province;

- Phuoc Long, Binh Long town, Dong Phu and Hon Quan district of Binh Phuoc province;

- The remaining districts of Tay Ninh province;

- The remaining districts of Dong Nai province;

- Long Dien, Dat Do, Xuyen Moc, Chau Duc and Con Dao district of Ba Ria - Vung Tau province;

- Kien Tuong town, Thu Thua, Duc Hue, Chau Thanh, Tan Tru and Thanh Hoa district of Long An province;

- Go Cong and Cai Lay town and Chau Thanh and Cho Gao district of Tien Giang province;

- Chau Thanh district of Ben Tre province;

- Binh Minh town and Long Ho district of Vinh Long province;

- Districts of Can Tho City;

- Kien Luong, Phu Quoc, Kien Hai, Giang Thanh and Chau Thanh district of Kien Giang province;

- Tan Chau town and Chau Phu, Chau Thanh and Thoai Son district of An Giang province;

- Nga Bay town and Chau Thanh, Chau Thanh A district of Hau Giang province;

- Gia Rai town of Bac Lieu

- Vinh Chau and Nga Nam town of Soc Trang;

- Nam Can, Cai Nuoc, U Minh and Tran Van Thoi district of Ca Mau province.

4. Region IV covers the remaining administrative divisions./.