Labor Regulations Labor Code Effective January 1, 1995 (Continued) For most works, monthly salary is the basic unit of earning for workers in Vietnam. Hourly wage is defined on the basis of daily wage divided by 8 (hours per day). Daily wage is defined on the basis of monthly salary divided by 26 (days per month). Weekly salary is defined on the basis of yearly salary divided by 52. Personal leave with pay includes holidays, 3 days for worker's wedding, 1 day for their children's wedding, 3 days for funeral of immediate relatives (including in-laws). Paid holidays are: Solar New Year's Day: 1 day; Lunar New Year's Festival: 4 days (1 last day of the year and 3 first days of the new year); Victory Day: 1 day (April 30); Labor Day: 1 day (May 1); National Day: 1 day (September 2). After 12-month service, worker is entitled to annual leave with pay ranging from 12-16 days: 12 days is for normal working condition, and 16 days for heavy, dangerous jobs in harsh environment. Maternity leave is 4 to 6 months, depending on environment and working conditions. Minor employees, under 18 years old, must not work exceeding 7 hours per day, or 42 hours per week. On-the-job training workers will be paid according to their agreement with employer; however, their salary must not be lower than the minimum wage or 70% of the regular rate. In the event a company declares bankruptcy, it must try to compensate employees in the order of priority as follows: salary up to the declared date of bankruptcy, healthcare expenses, social insurance, labor accident allowance, and other allowances as defined by the labor code. Employers are to contribute an amount equal 15% of each employee's wage for social insurance (pension, death allowance, maternity allowance, work related accidents and sickness, etc.) and employees are expected to contribute 5%. Although foreign investors tend to play down labor contracts, they are required to sign a collective labor agreement within 6 months of the beginning of operations. The labor contract is valid up to 3 years and can be amended. The Labor Department of the Ministry of Labor, War Invalids and Social Affairs is in charge of considering and approving of labor contracts. The Ministry of Labor has decided to raise the minimum wage. Effective July 1, 1996, the monthly minimum wage in Ho Chi Minh City and Hanoi would be raised from $US 35 to 45. In other major cities such as Hai Phong, Vinh, Da Nang, Hue, Nha Trang, Bien Hoa, Vung Tau and Can Tho, it would also be raised from $US 30 to 40, and from $US 30 to 35 in all other localities.