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Decree 153/2016/ND-CP providing for regional minimum wage rates

Decree 153/2016/ND-CP Dated Nov 14, 2016 providing for regional minimum wage rates applied to employees working under an employment contract. VND 3,750,000/ month for region I. VND 3,320,000/ month for region II. VND 2,900,000/ month for region III. VND 2,580,000/ month for region IV. The subregions of the region I, II, III and IV are defined in the Appendix hereto.

THE GOVERNMENT
-------

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

No. 153/2016/ND-CP

Hanoi, November 14, 2016

 

DECREE

PROVIDING FOR REGIONAL MINIMUM WAGE RATES APPLIED TO EMPLOYEES WORKING UNDER AN EMPLOYMENT CONTRACT

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Labor Code dated June 18, 2012;

Pursuant to the Corporate Law dated November 26, 2014;

According to the request of the Minister of Labor, War Invalids and Social Affairs;

The Government hereby introduces the Decree on regional minimum wage rates applied to employees working under an employment contract.

Article 1. Scope

This Decree provides for regional minimum wage rates applied to employees working under an employment contract as prescribed by the Labor Code.

Article 2. Subjects of application

1. Employees who work under terms and provisions of employment contracts prescribed by the Labor Code.

2. Enterprises which are established, organized and operated under the Corporate Law.

3. Cooperatives, cooperative unions, artels, farms, households, individuals and other organizations in Vietnam that hire employees working under employment contracts.

4. Overseas institutional entities and international organizations and foreigners operating within the territory of Vietnam that hire employees under employment contracts (unless otherwise stipulated by international conventions to which the Socialist Republic of Vietnam is a party).

Businesses, cooperatives, cooperative unions, artels, farms, households, institutions, organizations and individuals referred to in Clause 2, 3 and 4 of this Article (hereinafter referred to enterprise).

Article 3. Regional minimum wages

1. Regional minimum wage rates applied to employees working for enterprises shall be prescribed as follows:

a) VND 3,750,000/ month in the regional minimum wage rate applied to enterprises operating within unit subregions of region I.

b) VND 3,320,000/ month in the regional minimum wage rate applied to enterprises operating within subregions of region II.

c) VND 2,900,000/ month in the regional minimum wage rate applied to enterprises operating within subregions of region III.

d) VND 2,580,000/ month in the regional minimum wage rate applied to enterprises operating within subregions of region IV.

2. Subregions of the region I, II, III and IV are defined in the Appendix hereto.

Article 4. Principles of application of subregion-specific minimum wage rates

1. Enterprises operating within specific subregions shall adopt respective minimum wage rates applied thereto. In the event that affiliates or branches of the same enterprise operate within the subregions where the regional minimum wage rates vary, they must adopt the respective rates applied thereto.

2. Enterprises operating within industrial parks, export processing zones, economic zones and high-technology parks located within the subregions where the regional minimum wage rates vary shall adopt the same rates as applied to the highest-rate subregions.

3. Enterprises operating within the subregions which have been subject to any name change or splitting shall temporarily adopt the regional minimum rates applied prior to such change or splitting until the Government introduces new regulations.

4. Enterprises operating within the subregions newly established from one or more subregions where the regional minimum wage rates vary shall adopt the same rates as applied to the highest-rate subregions. Enterprises operating within the subregions which are provincially-governed cities newly established from one or more subregions of the region IV shall adopt the same rates as applied to the rest of provincially–governed cities referred to in Section 3 in the Appendix hereto.

Article 5. Application of regional minimum wage rates

1. Regional minimum wage rates, referred to in Article 3 hereof, are the lowest rates used as the basis for any arrangement between enterprises and employees on salary and salary payment in which the wage rate paid employees who work under normal working conditions, meet monthly working hour standards, and fully discharge their obligations for predetermined labor productivity norms or agreed work duties, must conform to the following requirements:

a) Not less than regional minimum wage rates paid unskilled laborers who perform simplest tasks;

b) Greater than at least 7% against the regional minimum wage rates paid skilled laborers who have completed vocational training courses referred to in Clause 2 of this Article (hereinafter referred to as trained employee).

2. Trained employees must obtain qualifications or meet statutory criteria, whichever applicable, as follows:

a) Vocational certificates, vocational degrees, professional secondary school diplomas, vocational secondary school diplomas, associate degrees, basic undergraduate education degrees, undergraduate education degrees, bachelor's degrees, postgraduate or master's degrees, or doctoral degrees, as defined in the Government’s Decree No. 90/CP dated November 24, 1993 on framework of national education system, educational and training certificate and diploma system;

b) Certificates of graduation from professional secondary school, certificates of graduation from vocational training course, certificates of graduation from junior college, certificates of graduation from university, master’s degrees and doctoral degrees; vocational education certificates or diplomas; undergraduate education diplomas, continuing education degrees or certificates, as prescribed by the 1998 Law on Education and the 2005 Law on Education;

c) Certificates concerning continuing vocational education programs, primary-level vocational certificates, certificates of graduation from vocational secondary school, certificates of graduation from vocational colleges, or have completed vocational training programs specified in vocational training agreements defined in the Law on Vocational Training;

d) National vocational skill certificates referred to in the Law on Employment;

dd) Vocational education certificates and diplomas at the elementary, secondary and post-secondary level; regular training and other vocational training certificates and diplomas, as defined in the Law on Vocational Education;

e) Certificates of graduation from undergraduate education programs stipulated by the Law on Higher Education;

g) Foreign educational institution’s certificates and diplomas;

h) Complete vocational training offered by enterprises, or perform their vocational self-training after which they are qualified for recruitment tests and offered jobs that require vocational training.

3. Upon referring to the regional minimum wage rates defined in Article 3 hereof and contents of employment contracts with employees, collective bargaining agreements or statutes of enterprises, they shall collaborate with the Executive Committee of grassroots-level Trade Union and employees to reach agreement on and determine the amounts of adjustment made to wage rates specified in pay scales, payrolls and those specified in employment contracts, and those paid employees provided that such adjustment is reasonable, conforms to legislative regulations on labor are observed, and ensures that wage rates paid employees, irrespective of whether they are untrained or trained or have attained high professional and technical qualifications, and whether they are newly recruited or have attained seniority during their period of working for these enterprises, must be adjusted on a pro rata basis.

4. Upon applying the regional minimum wage rates referred to herein, enterprises shall not be entitled to eliminate or cut back on wage-related benefits paid employees who work overtime, night shifts, in hazardous and arduous working conditions, and benefits in kind paid for hazardous hard labor as well as other benefits defined by laws on labor. Other allowances, supplemental pay, subsidies or bonuses decided by enterprises shall be subject to terms and conditions of employment contracts, collective bargaining agreements or their statutes.

Article 6. Entry into force

1. This Decree shall enter into force from January 1, 2017. The Government’s Decree No. 122/2015/ND-CP dated November 14, 2015 on the regional minimum wage rates applied to laborers or employees working for enterprises, cooperatives, artels, farms, households or individuals and institutional or organizational entities hiring employees shall be repealed from the date of entry into force of this Decree.

2. The Ministry of Labor, War Invalids and Social Affairs shall head, or work in collaboration with the Vietnam General Federation of Labour, Vietnam Chamber of Commerce and Industry, Vietnam Cooperative Alliance, Vietnam Association of Small and Medium Enterprises, ministries, bodies concerned, and People’s Committees of centrally-affiliated cities and provinces to perform, public dissemination and communication of this Decree to laborers and/or employees and employers, and inspection and supervision of compliance with regulations on the regional minimum wage rates defined herein; submit proposals to the Government for review of and adjustment to the stipulated regional minimum wage rates.

3. Ministers, Heads of Ministry-level agencies, Heads of Government agencies, the Presidents of the People’s Committees of centrally-affiliated cities and provinces, and institutions or enterprises, shall be responsible for enforcing this Decree./.

 

 

For THE GOVERNMENT
THE PRIME MINISTER




Nguyen Xuan Phuc

 

APPENDIX

LIST OF SUBREGIONS APPLYING THE REGIONAL MINIMUM WAGE RATES IN EFFECT FROM JANUARY 1, 2017
(Issued together with the Government’s Decree No. 153/2016/ND-CP dated November 14, 2016)

1. Region I is classified into the following subregions:

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

- Urban districts, and rural districts, including Thuy Nguyen, An Duong, An Lao and Vinh Bao, of Hai Phong city;

- Urban districts, and rural districts, including Cu Chi, Hoc Mon, Binh Chanh and Nha Be, of Ho Chi Minh city;

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

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

- Vung Tau city and Tan Thanh district of Ba Ria – Vung Tau province.

2. Region II is classified into the following subregions:

- The rest of rural districts of Hanoi capital;

- The rest of rural districts of Hai Phong city;

- Hai Duong city of Hai Duong province;

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

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

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

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

- Thai Nguyen and Song Cong city, and Pho Yen town, 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;

- Hoi An city of Quang Nam province;

- Urban and rural 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, and Dinh Quan and Xuan Loc district, of Dong Nai province;

- The rest of districts of Binh Duong province;

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

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

- Tan An city, and 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;

- Tra Vinh city of Tra Vinh province;

- Ca Mau city of Ca Mau province.

3. Region III is classified into the following subregions:

- The rest of provincially-governed cities (except those included in Region I and II);

- Chi Linh town, and 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, and 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 rest of districts of Hung Yen province;

- Phu Binh, Phu Luong, Dong Hy, Dai Tu district, of Thai Nguyen province;

- The rest of districts of Nam Dinh province;

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

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

- Luong Son district of Hoa Binh province;

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

- Ky Anh town of Ha Tinh province;

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

- Dien Ban town, and Dai Loc, Duy Xuyen, Nui Thanh, Que Son and Thang Binh 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, and 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, and Ham Thuan Bac and Ham Thuan Nam district, of Binh Thuan province;

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

- The rest of districts of Tay Ninh province;

- The rest of 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, and 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;

- Rural districts of Can Tho city;

- Kien Luong, Kien Hai 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 and Chau Thanh A, of Hau Giang province;

- Duyen Hai town of Tra Vinh province;

- Gia Rai town of Bac Lieu province;

- Vinh Chau and Nga Nam town of Soc Trang province;

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

4. Region IV is classified into the rest of subregions./.

 

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