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THE GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom Happiness
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No. 28-CP
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Hanoi, March 28,
1997
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DECREE
ON
RENOVATING THE 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 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 set the minimum wage level for calculating wage unit prices in State
Enterprises, as follows:
1. The State enterprises shall
be entitled to apply regulating coefficient for increasing the minimum wage by
not more than 1.5 times of the minimum wage prescribed by the State as basis
for calculating wage unit prices. The Ministry of Labor, War Invalids and
Social Affairs shall base on the cost of living, the labor wages on the market
in each region, branch and the business efficiency to provide detailed guidance
for the State enterprises in the application of such regulating coefficient.
2. When such increase regulating
coefficient is applied, the principle of not reducing the State budget
remittances, especially not reducing the profit remittance as compared to the
previous year, must be ensured, except for cases where the State readjusts the
selling prices of products or prices of services of enterprises.
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Article 2.-
The contribution and enjoyment of social insurance and medical insurance by
employees and officials in the State enterprises shall still be calculated
according to the wage coefficient prescribed in Decree No.26-CP of May 23, 1993
of the Government and the common minimum wage level prescribed by the
Government.
Article 3.-
The award funds and welfare funds of enterprises shall be implemented in
compliance with provisions of Clauses 4 and 5, Article 33 of the Regulation on
Financial Management and Business Cost-Accounting at State Enterprises issued
together with Decree No.59-CP of October 3, 1996 of the Government.
Article 4.-
The Ministry of Labor, War Invalids and Social Affairs shall set the form of
wage book to be uniformly applied in the State enterprises. The monthly wages
and net incomes of the employees shall be fully recorded in the wage books of
the enterprises in accordance with regulations of the Ministry of Labor, War
Invalids and Social Affairs to serve as basis for supervising and inspecting
the implementation of wage policy and payment of personal income tax as
prescribed by the State.
Article 5.-
The setting, approval and management of wage unit prices of the State
enterprises must satisfy the following requirements:
1. The wage unit prices must be
set on the basis of the advanced average labor norm of the enterprises and
salary indices prescribed by the State.
2. Ensuring the reasonable
average wage relationship among the State enterprises; the highest average wage
level actually paid by any enterprise must not exceed the double of the common
average wage in all enterprises which are assigned wage unit prices, and
ensuring the principle that the wage increase rate must be lower than the labor
productivity increase rate.
3. Enterprises having not set
labor norms and having no approved wage unit prices shall make the final
account of wage fund to be paid only on the total number of laborers actually
employed, with the average wage coefficient decided by the unit price-assigning
agency and the common minimum wage prescribed by the Government.
Article 6.-
The Managing Board or the Director of a State enterprise (for enterprises
having no managing board) shall have to:
1. Reorganize the management of
labor, labor norms, wages and bonuses in accordance with the stipulations of
the Government.
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3. Set wage unit prices on the
basis of labor norms and wage indices prescribed by the Government and then
submit them to the competent agency for approval in the first quarter of each
plan year at the latest.
4. Coordinate with the Executive
Committee of the Trade Union in elaborating and publicizing the regulation on
wage and bonus payment in the enterprise. Such regulation must ensure the
principle of distribution according to labor contribution, wage and bonuses
paid to each employee according to his/her labor productivity and work
efficiency, encouraging employees with high professional and technical skills.
The regulation on wage and bonus
payment must be made known to each employee in the enterprise and registered
together with the labor regulation at the provincial/municipal Service of
Labor, War Invalids and Social Affairs in accordance with provisions of the
Labor Code.
Article 7.-
The State management agencies shall have the following responsibilities and
powers:
1. The Ministry of Labor, War
Invalids and Social Affairs shall:
- Provide enterprises with
guidance on methods to set labor norms and register such labor norms at the competent
agency.
- Provide enterprises with
guidance on methods to set wage unit prices, wage indices, minimum wage
regulating coefficient according to the locality or branch for calculating wage
unit prices.
- Manage and assign wage unit
prices to enterprises of the special category under Decision No.185-TTg of
March 28, 1996 of the Prime Minister.
- Announce the common average
wage level of all enterprises which are assigned unit prices so as to adjust
the highest average wage level actually paid.
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2. The Ministries managing
branches or sectors shall carry out the registration and management of labor
norms and assign wage unit prices to enterprises under their management.
3. The Labor, War Invalids and
Social Affairs Services of the provinces and cities directly under the Central
Government shall carry out the registration and management of labor norms and
assign wage unit prices to the State enterprises under the management by the
local administration and joint stock companies with more than 50% capital
thereof contributed by State enterprises located in such localities.
4. Annually, the Ministries
managing branches or sectors, the Labor, War Invalids and Social Affairs
Services of the provinces and cities directly under the Central Government
shall have to report to the Ministry of Labor, War Invalids and Social Affairs
on the result of registration of labor norms, wage unit prices, on the wage and
income situation in the enterprises under their management.
Article 8.-
The Ministries managing branches or sectors, the provincial/municipal Services
of Labor, War Invalids and Social Affairs, the State enterprises shall organize
and consolidate the labor-wage managing system so as to fulfill the managerial
tasks and requirements under the Labor Code and the Law on State Enterprises,
set labor norms, organize and distribute labor force, set wage unit prices and
pay wages according to the productivity, quality and business efficiency of
each unit and each laborer in accordance with the State’s provisions.
Article 9.-
The Ministry of Labor, War Invalids and Social Affairs shall, after consulting
the Ministry of Finance and the Vietnam General Confederation of Labor,
concretely guide the implementation of this Decree.
Article 10.-
This Decree takes effect from January 1st, 1997. The earlier provisions which
are contrary to this Decree are now annulled.
Article 11.-
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 cities directly under the Central Government shall have to
implement this Decree.
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