Vietnam Law on Minimum Wage

HANOI NATIONAL UNIVERSITY

FACULTY OF LAW

LUU THI LAM

VIETNAMESE LAW ON MINIMUM WAGE

MASTER'S THESIS IN LAW

HANOI NATIONAL UNIVERSITY

FACULTY OF LAW

LUU THI LAM

VIETNAMESE LAW ON MINIMUM WAGE

Major : Economic Law

Code : 60 38 01 07

MASTER'S THESIS IN LAW

Scientific supervisor : Dr. NGUYEN XUAN THU

COMMITMENT

I hereby declare that this Thesis is my own research work. The results stated in this Thesis have not been published in any other work. The figures, examples and quotations in this Thesis ensure accuracy, reliability and honesty. I have completed all subjects and paid all financial obligations as prescribed by the Faculty of Law, Vietnam National University, Hanoi.

So I write this Declaration to request the Faculty of Law to consider so that I can defend my Thesis.

Thank you very much!

GUARANTEE

Luu Thi Lam

Cover Page Pledge Table of Contents

List of tables

INDEX

Page

INTRODUCTION 1

Chapter 1 : THEORETICAL ISSUES ON MINIMUM WAGE

MINIMUM WAGE AND LAW 7

1.1. Concept, role, characteristics, influencing factors and causes

determine minimum wage 7

1.1.1. Concept of minimum wage 7

1.1.2. The role of minimum wage 12

1.1.3. Characteristics of minimum wage 14

1.1.4. Factors affecting minimum wage 15

1.1.5. Criteria for determining minimum wage 18

1.2. Law on minimum wages 19

1.2.1. Concept and role of law on minimum wage 19

1.2.2. Content and form of the law on minimum wages 22

Chapter 2 : CURRENT STATUS OF VIETNAMESE LAW ON MONEY

MINIMUM WAGE 29

2.1. Current regulations on minimum wages in our country today 29

2.1.1. General minimum wage 30

2.1.2. Minimum wage region 35

2.1.3. Minimum wage industry 41

2.1.4. On the organization and implementation of minimum wage 42

2.2. Practical implementation of minimum wage policy 43

2.2.1. On determining the minimum wage 43

2.2.2. On implementing the adjustment of the minimum wage 46

2.3. Assessment of the current status of legal regulations on minimum wages 67

2.3.1. Achievements 67

2.3.2. Existing problems and limitations 69

Chapter 3 : SOLUTIONS TO IMPROVE AND IMPROVE THE EFFECTIVENESS OF IMPLEMENTING THE LAW ON MINIMUM WAGE

MINORITY IN VIETNAM 72

3.1. Requirements for perfecting the law and improving efficiency

implementing the law on minimum wages 72

3.1.1. General requirements for reforming the wage policy system 72

3.1.2. Requirements of the domestic socio-economic context and requirements of the association

international economic integration 73

3.1.3. Requirements for conformity with ILO Conventions 75

3.1.4. Requirements from supply and demand relationship in the labor market 76

3.1.5. Requirements from institutionalizing the Party's guidelines and viewpoints on

salary 78

3.2. Solutions to improve the law and enhance implementation efficiency

current law on minimum wage 81

3.2.1. Determine the minimum wage based on correct and sufficient calculation (ensuring) the minimum living standard and in accordance with the socio-economic conditions of each area.

period 81

3.2.2. Adjusting the minimum wage when the economy grows and inflation 82

3.2.3. Implementing industry minimum wages through negotiation and signing

collective labor agreement of industry and group of enterprises 82

3.2.4. Perfecting the law on minimum wages, moving towards building

Minimum Wage Law 83

3.2.5. Other solutions to improve the effectiveness of law enforcement on money

minimum wage 91

CONCLUSION 95

LIST OF REFERENCES 97

APPENDIX 103

LIST OF APPENDIX TABLES

Plate number

Table name	Page
Table 2.1:	Comparing the minimum wage gap between regions	103
Table 2.2:	The general minimum wage set compared with the minimum wage determined by the needs-based method minimum	103
Table 2.3:	Adjust the general minimum wage compared to CPI (previous year equal to 100%)	104
Table 2.4:	Adjusting minimum wage for FDI sector	104
Table 2.5:	Regional minimum wage for the period 2008-2015	99

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INTRODUCTION

1. The urgency of researching the topic

Wage policy has an important position in the country's socio-economic policy system, and is the driving force for effective use of labor resources.

After many reforms, our country's wage policy has been demonstrating its role and function in production, business and the lives of workers, especially the wage policy from 1993 to present has been gradually innovated according to the socialist-oriented market mechanism, not calculating average or equal. Wages are considered the price of labor and are formed on the basis of negotiation and agreement between employees and employers through signing labor contracts or collective labor agreements. Wages become a driving force, a lever to stimulate and encourage workers to do work with productivity, quality, efficiency, improve professional qualifications, skills, and at the same time are a means to ensure an increasingly improved life.

Minimum wage is a basic and important content of wage policy in a market economy. Minimum wage participates in the process of distribution and macro-regulation of wages and income on a social scale; at the same time, it is a factor participating in the formation of input costs of enterprises and distribution according to the output results of production and business.

In a market economy , the minimum wage has an important position, being the lowest floor that no employer has the right to pay lower than that level and is a safety net for wage earners in society. The minimum wage regulated by the State is one of the important tools for macro-management of wages, reducing inequality in wages and income, fighting poverty, overwork exploitation, and is the legal basis for employees and employers to negotiate higher wages in the market.

labor. Minimum wages participate in the process of distribution and macro-regulation of wages and income on a social scale; at the same time, they are a factor participating in the formation of input costs of enterprises and distribution according to the output results of the production and business process. In international economic integration, minimum wages are considered one of the important indicators showing a market economy.

For our country, in the process of transitioning to a socialist-oriented market economy, the awareness of minimum wages in the market economy is increasingly clear. Wage policy in Vietnam in general and minimum wages in particular have been constantly improved through many reforms, in accordance with each stage of development of the country, and have been gradually innovated in the direction of the market, contributing to promoting the development of productive forces based on the principle of considering wages as a factor of production, as the price of labor formed through the agreement between employees and employers, in accordance with the supply-demand relationship in the labor market . Currently, the minimum wage policy is codified in the Labor Code (Article 56 of the 1994 Labor Code and Article 91 of the 2012 Labor Code).

However, in the transition period from a centralized, subsidized management mechanism to a socialist-oriented market economy, our country's economy is increasingly integrating deeply and widely with the international economy, so the minimum wage for enterprises in Vietnam today needs to be further researched and improved to meet practical requirements, which are:

Firstly , the minimum wage is still low, not ensuring the living standards of workers (according to the new regional minimum wage adjusted from January 1, 2014, it only meets about 70% of the minimum living standards of workers) [27].

Second, minimum wages, including from the mechanism and principles of formation

Vietnam Law on Minimum Wage - 1

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