Decision 708/1999/QD-BLDTBXH on minimum wages and wages of Vietnamese workers working in foreign-invested enterprises issued by the Minister of Labour, Invalids and Social Affairs

DECISION

CONCERNING THE MINIMUM SALARY RATE AND SALARY OF VIETNAMESE LABOURERS WORKING IN FOREIGN-INVESTED ENTERPRISES

MINISTER OF LABOUR, WAR INVALIDS AND SOCIAL AFFAIRS

Pursuant to Decree No.96/CP dated December 7, 1993 by the Government concerning regulations on functions, responsibilities, powers and organisation structure of the Ministry of Labour, War Invalids and Social Affairs (MoLISA);
Pursuant to Decree No.197/CP dated December 31, 1994 by the Government providing detailed regulations and guidance on the implementation of some Articles of the Labour Code concerning salaries;
Pursuant to Decision No.53/1999/QD-TTg dated March 26, 1999 by the Prime Minister concerning some encouragement measures to attract foreign direct investment (FDI) and opinions by the Prime Minister stated in Document No.619/CP-VX dated June 15, 1999 by the Government Office;
In accordance with a proposal by the head of the Department of Salaries and Wages,

DECIDES

Article 1: The minimum salary rate applicable to Vietnamese labourers conducting the most simple jobs (untrained labourers) with normal working conditions and environment in foreign-invested enterprises (FIEs) is regulated as follows:

1/ The minimum salary rate cannot be lower than VND626,000 per month, applied to (FIEs) located in the urban districts of Hanoi and HCM City;

2/ The minimum salary rate cannot be lower than VND556,000 per month, applied to (FIEs) located in the rural districts of Hanoi and HCM City, and the urban districts of the cities of Hai Phong, Bien Hoa and Vung Tau;

3/ The minimum salary rate cannot be lower than VND487,000 per month, applied to (FIEs) located in the remaining districts, provinces and cities.

4/ For some (FIEs) located in areas with difficult economic conditions and poor infrastructure (outside areas regulated in the first two points of this Article), the minimum salary rate can be lower than VND487,000 per month but at least VND417,000 per month. However, an application must be submitted to the chairmen of Centrally controlled provincial or municipal People�s Committees for consideration and definition of the period of implementation, and as well must be reported to the MoLISA for general observation.

Article 2: When the Consumer Price Index (CPI) announced by the General Department of Statistics increases by 10 per cent or more against the latest adjustment of salaries, MoLISA will adjust the minimum rates regulated in Article 1 after having obtained approvals from the Vietnam Labour Federation, Ministry of Planning and Investment, and representatives of employers, and after having made a report to the Prime Minister.

Article 3: The above-mentioned minimum salary rates cannot be applied to specialised labourers, and trained technicians (including labourers trained by the enterprises).

Article 4: This Decision comes into force from June 1, 1999.

For Vietnamese labourers working in (FIEs) who have a minimum salary rate and other incomes written in US dollars in their Labour Contract, all salaries must now be converted into Vietnamese dong in accordance with the exchange rate of VND13,910 per US$.

For (FIEs) granted Investment Licences before Decision No.53/1999/QD-TTg, dated March 26, 1999, by the Prime Minister came into force, and located in areas subject to the adjustment of the minimum salary rate regulated in Article 1 of this Decision, employers and labourers must come to an agreement on the rational application of the minimum salary rate.

Article 5: The chairmen of the Centrally controlled provincial and municipal People’s Committees, head of the Department of Salaries and Wages and (FIEs) employing Vietnamese labourers have a responsibility for implementing this Decision.

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