Can the National Wage Council decide the region-based minimum wages? What are the duties of the National Wage Council?
Can the National Wage Council decide the region-based minimum wages?
Pursuant to Article 49 of Decree 145/2020/ND-CP of Vietnam stipulating as follows:
Functions of National Wage Council (NSC)
NSC shall be established by the Prime Minister in accordance with Clause 2 Article 92 of the Labor Code and will provide consultation for the Government regarding:
1. Region-based minimum wages (including monthly and hourly minimum wages).
2. Policies on salaries of employees according to the Labor Code.
Thus, the National Wage Council is not allowed to decide on the region-based minimum wages, but only has the function of consultation for the Government to decide.
Can the National Wage Council decide the region-based minimum wages? What are the duties of the National Wage Council? (Image from the Internet)
What are the duties of the National Wage Council (NSC)?
Pursuant to Article 50 of Decree 145/2020/ND-CP of Vietnam, the National Wage Council has the following duties:
- Carry out surveys; collect information; carry out analysis of salaries and subsistence standards of workers, business performance of enterprises, labor demand – supply relation, employments and unemployment in the economy, and other relevant factors as the basis for determination of minimum wages.
- Prepare reports on minimum wages based on the factors prescribed in Clause 3 Article 91 of the Labor Code.
- Review the subsistence standards of workers and their families; apply minimum wages to separate regions.
- Hold annual negotiations to propose to the Government the plan for adjustments to region-based minimum wages (including monthly and hourly minimum wages).
- Provide consultation for the Government regarding policies on salaries of employees in enterprises, agencies, organizations and cooperatives in accordance with the Labor Code.
What is the current composition and head of the National Wages Council?
Pursuant to Article 51 of Decree 145/2020/ND-CP of Vietnam, the National Wage Council has the following composition:
Composition of NSC
1. NSC has 17 members: 05 members are representatives of the Ministry of Labor, War Invalid and Social Affairs; 05 members are representatives of Vietnam General Confederation of Labor; 05 members are representatives of some central employer representative organizations; 02 members are independent experts (hereinafter referred to as “independent members). To be specific:
a) The President of NSC is a Deputy Minister of Labor, War Invalid and Social Affairs;
b) 03 Vice Presidents of NSC include a Vice President of Vietnam General Confederation of Labor, a Vice President of Vietnam Chamber of Commerce and Industry and a Vice President of Vietnam Cooperative Alliance (VCA);
c) Other members of NSC: 04 representatives of the Ministry of Labor, War Invalid and Social Affairs; 05 representatives of Vietnam General Confederation of Labor; 03 representatives of central employer representative organizations (including 01 representative of Vietnam Association of Small and Medium Enterprises and 02 representatives of 02 central labor-intensive trade associations); 02 independent members are experts or scientists specialized in salaries, economics, society (except those working at agencies, units, research institutes, universities of the Ministry of Labor, War Invalid and Social Affairs, Vietnam General Confederation of Labor and central employer representative organizations).
2. The President and Vice Presidents of NSC mentioned in Point a and Point b Clause 1 of this Article shall be designated and discharged by the Prime Minister. The Minister of Labor, War Invalid and Social Affairs is authorized by the Prime Minister to designate and discharge other members of NSC mentioned in Point c Clause 1 of this Article. The Presidents and Vice Presidents of NSC work on a part-time basis and have a term of office of up to 05 years.
3. NSC has a technical department and assistance department, which will assist NSC and its President in preparing technical reports relevant to the duties of NSC and performance of its administrative tasks. Members of the technical department and assistance department are personnel of the organizations that participate in NSC and relevant organizations and work on a part-time basis.
Pursuant to Decision 449/QD-TTg in 2021 on the establishment of the National Wage Council issued by the Prime Minister. Currently, Mr. Le Van Thanh is the President of the Council and the three Vice Presidents of the Council are Mr. Ngo Duy Hieu, Mr. Hoang Quang Phong, Mr. Nguyen Van Thinh.
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