Decree No.111/2008/ND-CP providing area minimum wage rates for Vietnamese employees working for enterprises with foreign owned capital, foreign bodies and organizations, international organizations and for foreign individuals in Vietnam

PROVIDING AREA MINIMUM WAGE RATES FOR VIETNAMESE EMPLOYEES WORKING FOR ENTERPRISES WITH FOREIGN OWNED CAPITAL, FOREIGN BODIES AND ORGANIZATIONS, INTERNATIONAL ORGANIZATIONS AND FOR FOREIGN INDIVIDUALS IN VIETNAM

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated 25 December 2001;

Pursuant to the Labour Code dated 23 June 1994, the Law on Amendment of the Labour Code dated 2 April 2002, and the Law on Amendment of the Labour Code dated 29 June 2006;

Pursuant to Resolution 56/2006/NQ-QH11 of Legislature X1 of the National Assembly dated 29 June 2006 on the socio-economic developmental master plan for the five year period 2006 - 2010; Having considered the proposal of the Minister of Labour, War Invalids and Social Affairs;

DECREES:

Article 1

To regulate the area minimum wage rate to be used to pay employees doing the most basic work in normal working conditions for enterprises with foreign owned capital, foreign bodies and organizations, international organizations and foreign individuals in Vietnam (hereinafter collectively referred to as enterprises), which shall be implemented as from 1 January 2009, as follows:

The Appendix to this Decree contains the List of Areas I, II, III and IV.

Article 2

1. The area minimum wage rates stipulated in article 1 of this Decree shall be used as the basis for calculating wage scales, wage tables and all types of allowances; for calculating wage rates recorded

in labour contracts, and for implementing other regimes formulated by enterprises and promulgated by them in accordance with authority as provided in the law on labour.

2. The lowest wage rate payable to employees who have passed vocational training courses (including employees who have been trained by the enterprise which employs them) must be at least seven (7) per cent higher than the area minimum wage rates stipulated in article 1 of this Decree.

3. Enterprises are encouraged to pay higher minimum wage rates than those stipulated in article 1 of this Decree.

4. Enterprises shall amend the wages stipulated in labour contracts for compliance with the area minimum wage rates stipulated in article 1 of this Decree.

DECREE