JOINT-CIRCULAR

GUIDING THE ADJUSTMENT OF WAGES AND ALLOWANCES IN ENTERPRISES

In furtherance of Decree No. 10/2000/ND-CP of March 27, 2000 of the Government providing for the minimum wage in enterprises, after consulting with Vietnam Labor Confederation, the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance hereby jointly guide the adjustment of wages in enterprises as follows:

I. OBJECTS OF APPLICATION

- Laborers working in enterprises operating under the State Enterprise Law, including: enterprises engaged in production and business activities; public-utility enterprises, enterprises of armed forces; organizations and units of administrative and public-service agencies, Party and mass organizations as well as financially self-covered mass associations, which are licensed to conduct production, business and service activities;

- Laborers working in enterprises operating under the Enterprise Law, including: joint-stock companies, limited liability companies, partnerships and private enterprises;

(The above-mentioned organizations are called enterprises for short)

II. METHOD FOR RECALCULATING WAGE LEVELS

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a) Recalculating the wage levels:

The wage level effected as from January 1st, 2000

=

The minimum wage level (180,000 dong/month)

x

Currently enjoyed wage coefficient

b) Recalculating the allowance level:

- For the allowances calculated upon the minimum wage:

The allowance level. effected as from January 1st, 2000

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The minimum wage level (180,000 dong/month)

x

Allowance coefficient to be enjoyed as prescribed

- For the allowances calculated upon ranks, positions and professions:

The allowance level effected as from January 1st, 2000

=

The wage level effected as from January 1st, 2000

x

Allowance percentage to be enjoyed as prescribed

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The wage level of reserved disparity coefficient(if any) as from January 1st, 2000

=

The minimum wage level (180,000 dong/month)

x

Currently enjoyed disparity coefficient

d) For the branches where rewards are stipulated by the State to be included in their wage fund, such rewards shall be recalculated according to the minimum wage level of 180,000 dong/month.

2. For State enterprises, when applying the increase regulating coefficient by not more than 1.5 times of the common minimum wage level prescribed by the State (180,000 dong/month as from January 1st, 2000) as basis for calculation of wage unit prices, they must satisfy all conditions stipulated in Article 1, Decree No. 28/CP of March 28, 1997 of the Government and Circular No. 13/LDTBXH of April 10,1997 of the Ministry of Labor, War Invalids and Social Affairs guiding the methods of formulating wage unit prices and managing wages and incomes in enterprises.

3. For enterprises which have formulated their wage scales and wage tables according to the provisions of labor legislation, based on the minimum wage level of 180,000 dong/month, they shall recalculate the wage levels inscribed in the labor contracts which shall serve as basis for wage payment, recalculate social insurance and health insurance regimes, as well as payment for extra work, night work, work stoppage, annual leaves and other regimes as prescribed by the State.

4. The level for mid-shift meal prescribed in Circular No. 15/1999/TT-BLDTBXH of June 22, 1999 of the Ministry of Labor, War Invalids and Social Affairs shall not exceed the minimum wage level of 180,000 dong/month as from January 1st, 2000.

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1. The branch- and domain-managing ministries, the provincial/municipal Peoples Committees and Chairmen of the Management Boards of Corporations 91 shall have to direct and urge enterprises to strictly comply with the provisions of this Circular.

2. The State enterprises shall, when determining wage unit prices and calculating the mid-shift meal according to the minimum wage level of 180,000 dong/month, have to work out active measures to raise productivity and efficiency, combine the increase of laborers incomes with the increase of profits and contributions to the State as prescribed by various documents.

3. This Circular takes effect as from January 1st, 2000. All previous provisions contrary to this Circular are now annulled.

In the course of implementation, if any troubles arise, the branch- and domain-managing ministries, the provincial/municipal Peoples Committees and enterprises are requested to report them to the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance for consideration and settlement.

FOR THE MINISTER OF FINANCE
VICE-MINISTER




Tran Van Ta

FOR THE MINISTER OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS
VICE-MINISTER




Le Duy Dong