Decree No: 31/2012/ND-CP of April 12, 2012, providing for the common minimum wage

DECREE

PROVIDING FOR THE COMMON MINIMUM WAGE

Pursuant to the December 25, 2001Law on organization of the Government;
Pursuant to the June 23, 1994 Labor Code ; the April 2, 2002 Law of  amending and supplementing a number of articles of the Labor Code; the June 29, 2006  Law of amending and supplementing a number of articles of the Labor Code  and the April 2, 2007 Law of amending and supplementing Article 73 of the Labor Code;
Pursuant to the National Assembly’s Resolution No. 14/2011/QH13 of November 10, 2011, on the 2012 state budget estimates;
At the proposal of the Minister of Labor, War Invalids and Social Affairs, the Minister of Home Affairs and the Minister of Finance,
The Government hereby promulgates the Decree providing for the common minimum wage
Article 1. Common minimum wage
The common minimum wage of 1,050,000 dong/month shall be applied from May 1, 2012.
Article 2. Subjects and scope of application
The common minimum wage provided for in this Decree applies to cadres, civil servants, public employees, armed forces servicemen and employees of agencies, units and organizations:
1. State agencies, armed forces, political organizations and socio-political organizations.
2. Non-business units of the State; non-business units of political organizations and socio-political organizations.
3. State-owned one-member limited liability companies which are organized and managed and operate under the Enterprise Law.
Article 3. Application of the common minimum wage
The common minimum wage provided for in this Decree is used as a basis for:
1. Calculating wage levels in the system of wage scales, wage payrolls and wage-based allowance levels, and implementing a number of other regimes established by law towards cadres, civil servants, public employees, armed forces servicemen and employees of agencies, units and organizations specified in Article 2 of this Decree.
2. Calculating allowances, from May 1, 2012 onward, for redundant laborers under the Government’s Decree No. 91/2010/ND-CP of August 20, 2010, providing for the policy for redundant laborers upon reorganizing state-owned one-member liability limited companies.
3. Calculating wage deductions and entitlements of wage earners based on the common minimum wage.
Article 4. Funds for applying the common minimum wage
1. The state budget shall assure funds for applying the common minimum wage from the following sources:
a) Saving of 10% of the regular expenditure (except wage and amounts of wage nature) in accordance with the estimates in 2012 allocated by competent authorities to administrative agencies and non-business units.
b) Use of at least 40% of revenues permitted to be retained in 2012 at revenue-generating administrative agencies and non-business units under regulations. Use of at least 35% of revenues permitted to be retained at non-business units of the health sector under regulations (after deducting expenses for medicines, blood, infusion fluid, chemicals, consumed supplies and substitute supplies).
c) Use of 50% of increased revenues of local budget, exclusive of increased revenue from land use levies (including 50% of increased revenues implemented in comparison with the revenues estimate of 2011 allocated by the Prime Minister and 50% of increased revenues estimated for 2012 in comparison with the revenues estimate of 2011 allocated by the Prime Minister).
d) The state budget funds for the wage reform that remain unused by the end of 2011 of administrative agencies, non-business units and local budgets at all levels.
dd) The central budget shall assure additional funds for ministries, central agencies, provinces and centrally run cities, which have complied with Points a thru d Clause 1 of this Article, but still need funds for paying wages based on the common minimum wage.
e) The central budget shall support for difficulty-hit localities which cannot acquire sources to pay wages at the average level of two-thirds of the common minimum wage for part-time cadres of communes, wards, townships, villages and street quarters as identified in the Government’s Decree No. 92/2009/ND-CP of October 22, 2009.
2. Funds for applying the common minimum wage to employees of companies specified in Clause 3 of Article 2 shall be provided by these companies and may be accounted into their product costs or production or business expenses.
Article 5. Implementation guidance responsibilities
1. The Ministry of Labor, War Invalids and Social Affairs shall, after consulting the Vietnam General Confederation of Labor, representatives of employers and concerned ministries and sectors, guide the application of the common minimum wage to state-owned one-member limited liability companies; and guide the calculation of allowances specified in Clause 2, Article 3 of this Decree applicable to redundant laborers under the Government’s Decree No.91/2010/ND-CP of August 20, 2010.
2. The Ministry of Home Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Finance and concerned ministries and sectors in, guiding the application of the common minimum wage to agencies, units and organizations specified in Clauses 1 and 2 Article 2 of this Decree.
3. After reaching agreement with the Ministry of Home Affairs and the Ministry of Finance, the Ministry of National Defense and the Ministry of Public Security shall guide the application of the common minimum wage to their personnel.
4. The Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned ministries and sectors in:
a) Guiding the estimation and balancing of funds for applying the common minimum wage in accordance with Clause 1 Article 4 of this Decree;
b) Appraising and adding funds for ministries, central agencies, provinces and centrally-run cities to apply the common minimum wage to cases specified at Point dd, Clause 1, Article 4 of this Decree, ensuring targeted additional funds for difficulty-hit localities specified at Point e, Clause 1, Article 4 of this Decree, and reviewing the implementation for reporting to the Prime Minister.
Article 6. Effect
1. This Decree takes effect on June 01, 2012.
Entitlements provided for in this Decree apply from May 01, 2012.
2. To annul the Government’s Decree No. 22/2011/ND-CP of April 04, 2011 providing for the common minimum wage.
Article 7. Implementation organization
Ministers, Heads of ministry equivalent agencies and governmental agencies, and Chairpersons of provincial-level People’s Committees shall implement this Decree./.