Circular 10/2012/TT-BLDTBXH guiding the general minimum wage for single-member limited liability companies wholly owned by the State

Circular 10/2012/TT-BLDTBXH, issued by the Ministry of Labour, Invalids and Social Affairs on 26 April 2012, guides application of the common minimum wage for single-member limited liability companies wholly owned by the State. It implements Decree 31/2012/ND-CP, which set the common minimum wage. The Circular takes effect on 10 June 2012, applies from 1 May 2012, and replaces Circular 12/2011/TT-BLDTBXH. It covers employees on labour contracts and company managers, including Members' Council members or company chairpersons, controllers, the general director or director, deputy general directors or deputy directors, and chief accountants, working in State-owned single-member limited liability companies, including independent companies under ministries and provincial People's Committees, parent companies of State economic groups, and companies owned by those parent companies. The central calculation parameter is the common minimum wage of 1,050,000 dong per month, applied from 1 May 2012 to compute wages and wage allowances. Companies use this figure together with the salary coefficients in the wage scales and allowance tables under Decree 205/2004/ND-CP and Decree 204/2004/ND-CP to recompute wages and allowances that serve as the basis for paying and receiving social insurance, unemployment insurance, and health insurance, as well as pay for work stoppages, public holidays, and annual leave. The method is to take the grade-based salary coefficient by job title, the professional or expertise coefficient, the position coefficient, the wage allowances, and any reserved differential coefficient, and multiply each by the 1,050,000 dong common minimum wage. The 1,050,000 dong base is also used to calculate allowances for redundant workers under Decree 91/2010/ND-CP when State-owned single-member limited liability companies are reorganized, covering job-loss allowances, supplements for time worked in the State sector, job-search allowances, and additional allowances for those taking early retirement. In addition, the Decree 31/2012/ND-CP common minimum wage is used from 1 May 2012 as the basis for determining the unit labour cost and total wage fund for the relevant companies and units. From the same date, covered companies and State units applying the State wage system may spend up to 680,000 dong per person per month on mid-shift meals. Companies and two-member or shareholding companies converted from State companies that still apply the State wage scales likewise use this common minimum wage to recompute wages and allowances for social insurance, unemployment insurance, and health insurance purposes. Ministries and provincial People's Committees are tasked with directing and inspecting implementation.