DECREE

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE GOVERNMENT’S DECREE NO. 28/CP OF MARCH 28, 1997 ON RENOVATING MANAGEMENT OF WAGES AND INCOMES IN THE STATE ENTERPRISES

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Labor Code of June 23, 1994;
Pursuant to the Law on State Enterprises of April 20, 1995;
At the proposal of the Minister of Labor, War Invalids and Social Affairs,

DECREES:

Article 1.- To amend and supplement a number of Articles of the Governments Decree No. 28/CP of March 28, 1997 on renovating the management of wages and incomes in the State enterprises as follows:

1. To amend Clause 2, Article 1 as follows:

"2. When applying the regulating coefficient for increase of minimum wage level, enterprises must ensure the following conditions: Fulfilling the State budget remittance obligations as prescribed by law; gained profits must not be lower than those of the preceding year (except for special cases where so permitted by the State) and must ensure that the wage increase rate is lower than the labor productivity growth rate.

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2. To add a paragraph to the end of Article 1 as follows:

The branch or domain-managing ministries, the Peoples Committees of the provinces and centrally-run cities, the managing boards of corporations established under the Prime Ministers Decision No. 91/TTg of March 7, 1994 shall base themselves on the performance of the preceding years production and business tasks and the proposals of enterprises to appraise the profit plan norms, which shall serve as basis for calculating the wage unit prices and making the final settlement of the enterprises paid wage funds as prescribed in Clause 1 of this Article".

3. To amend Clause 2, Article 5 as follows:

"Ensuring the reasonable average wage relationship among the State enterprises".

4. To add Clause 4 to Article 5 as follows:

"4. The State enterprises with stable production and business conditions shall be considered and assigned the fixed wage unit prices within a time limit of between 2 and 3 years on the basis of satisfying all conditions prescribed in Clause 1 of this Decision".

5. To add Clause 5 to Article 5 as follows:

"5. When making the final settlement of the paid wage fund, if enterprises fully observe the principles prescribed in Clause 1 of this Article but the gained profits surpass the assigned profit plans, they shall be allowed to deduct a part of the increased profits to add them to their wage funds, but the maximum thereof must not exceed the 3 months average paid wage of enterprises in order to directly distribute such profits to laborers and make wage fund reserve for the next year".

6. To amend Clause 1 of Article 6 as follows:

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Annually, basing themselves on technical and technological equipment and production process, volume and quality of work according to the production and business requirements, the enterprises shall make the labor employment plan, attaching special importance to the streamline of indirect labor. This plan must be approved by the managing boards of the enterprises or appraised by the immediate superior agencies before enterprises recruit the labors.

The managing boards and directors of enterprises shall have to settle all regimes for laborers who are left without jobs due to the recruitment in excess of the production and business requirements from the enterprises funding sources.

7. To annul the contents of the paragraph 4, Clause 1 of Article 7.

8. To amend Article 8 as follows:

"The branch-or domain-managing ministries; the provincial/municipal Services of Labor, War Invalids and Social Affairs and the State enterprises shall have to consolidate their specialized labor and wage sections and develop the contingent of cadres, officials and employees involved in such work as provided for in the Labor Code and the Law on State Enterprises, and attach importance to reorganizing the work of setting labor norms, recruiting labor, setting the wage unit price and paying wage based on the tasks of production, business, productivity, quality and business efficiency; strictly manage the labor in the State enterprises, overcome the situation of recruiting labor in excess of the employment demands."

Article 2.-

1. The Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility and coordinate with the concerned ministries and branches in guiding the application of Decree No. 28/CP of March 28, 1997 to the capital construction enterprises, public-utility enterprises, which may select the minimum wage increase-regulating coefficient as prescribed, but have to ensure the labor productivity increase, the achievement of the eco-technical norms set by the competent State agencies, the non-increase of State-allocated capital source and the fulfillment of the obligations for the State budget remittance and profits as provided for by law.

2. The Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility and coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Aquatic Resource, the Ministry of Trade and the concerned ministries and branches in guiding the application thereof to the enterprises under the branches of agriculture, forestry, fishery and trade, which observe the mechanism of expenditure package, budget remittance package and revenue package.

Article 3.- The Ministry of Labor, War Invalids and Social Affairs shall, after consulting with the Ministry of Finance and Vietnam Labor Confederation, guides the implementation of this Decree.

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Article 5.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities and the State enterprises shall have to implement this Decree.

ON BEHALF OF THE GOVERNMENT
FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Tan Dung