LABOR:

Decree No. 03/2005/ND-CP, Minimum wages for Vietnamese workers in FDI Enterprises, etc. (English)

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness

THE GOVERNMENT

No. 03/2006/ND-CP

Hanoi, 06 January 2006

DECREE
Providing for Provisions on Minimum Wages of Vietnamese Employees Working for Foreign Invested Enterprises, Foreign Agencies and Organisations and Foreign Individuals based in Vietnam

-Pursuant to the Law on the Organisation of the Government dated 25 December 2001;
-Pursuant to the Labor Code dated 23 June 1994; the Law amending and adding to a number of Articles of the Labor Code dated 2 April 2002;
-Upon the proposal of the Minister of Labor,War Invalids,and Social Affairs;

DECREES:

Article 1.

This Decree provides for minimum wages, paid to Vietnamese employees working the most simple jobs under normal working conditions for foreign invested enterprises, foreign agencies and organisations, international organisations and foreign individuals based in Vietnam (hereinafter mutually referred to as “enterprises”), which are as follows:

1.The rate of VND 870,000 per month is applicable to employees of enterprises located in districts of Hanoi and Ho Chi Minh City;

2.The rate of VND 790,000 per month is applicable to employees of enterprises located in suburb districts of Hanoi, Ho Chi Minh City; districts of Hai Phong City,Ha Long City of Quang Ninh Province, Bien Hoa City of Dong Nai Province, Vung Tau City of Baria-Vung Tau Province, Thu Dau Mot Town and Districts of Thuan An, Di An, Ben Cat and Tan Uyen of Binh Duong Province;

3. The rate of VND 710,000 per month is applicable to employees of enterprises located in the other areas.

Article 2.

1. The minimum wages provided for in Article 1 under this Decree are used as a basis for establishing a salary scale, payroll ledgers and allowances; for determining salary levels to be stated under a labor contract; and for the implementation of other regimes which are set up and issued by enterprises in accordance with its competence provided for by labor laws.

2. The lowest salary paid to workers who have undergone industrial training (including on –the-job training provided by enterprises) should be at least 7% higher than minimum wages provided for in Article 1 under this Decree.

3. Enterprises are encouraged to apply a rate of minimum wage that is higher than those of minimum wages provided for in Article 1 under this Decree.

Article 3.

1. Minimum wages as provided for in Article 1 under this Decree are subject to adjusting by the Government from time to time, depending on economic growth levels, retail price index, and the supply and demand of labor.

2. The Ministry of Labor, War Invalids and Social Affairs, upon taking recommendations from the Vietnam General Federation Labor, representatives of employers and relevant ministries and agencies shall submit to the Government the adjustment to the minimim wages provided for in Paragraph 1 in this Article.

Article 4.

This Decree comes into effect from 01 February 2006.

Any previously issued provisions which are inconsistent with this Decree are hereby repealed.

Article 5.

Ministers, heads of ministerial-level bodies and governmental agencies and chairmen of people’s committees of provinces and cities under central authority are responsible for implementing this Decree.

ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER

Phan Van Khai
(Signed and sealed)

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