Decree No. 205/2004/ND-CP dated December 12, 2004, regulation on salary scale, payroll and salary allowance system in state-owned companies

• Official number: 205/2004/ND-CP
• Legislation Type: Decree of Government
• Organization: The Government
• Signer: Phan Van Khai
• Issued Date: 14/12/2004

THE GOVERNMENT -------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
No. 205/2004/ND-CP	Ha Noi, December 12, 2004

DECREE

REGULATION ON SALARY SCALE, PAYROLL AND SALARY ALLOWANCE SYSTEM IN STATE-OWNED COMPANIES

GOVERMENT

Pursuant to Law on Organization of Government dated December 25, 2001;

Pursuant to Labor Code dated June 23, 1994; the Law amending and supplementing a number Articles of Labor Code dated April 4, 2002;

Pursuant to Law on State-owned Enterprise dated November 26, 2013

Pursuant to Resolution No. 19/2003/QH11 dated November 16, 2003 on duties in 2004 of XI^th National Assembly;

At the proposal of the Minister of Labor - Invalids and Social Affairs,

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Article 1. Scope of application of salary scale, payroll system and salary allowances as provided for in this Decree, including:

1. 1. State-owned company:

- State-owned corporation

- Independent state-owned company;

2. Independent accounting member company of Corporation invested and established by the State.

All Corporations and companies mentioned above are referred as company.

Article 2. Subjects of application

1. Workers, employees directly engaged in production or business;

2. Members of the Board of Directors, members of Supervisory Board;

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4. Professional officers and subordinate employees;

Article 3. Issued together with this Decree the salary scale, payroll and allowance of Head and Deputy Head of Department, including:

1. Salary scales of workers, employees who are directly involved in production and business;

2. Payrolls of workers, employees who are directly involved in production and business;

3. Payrolls of  full-time members of the Board of Directors;

4. Payrolls of General Director, Director, Deputy General Director, Deputy Director and Chief Accountant;

5. Payrolls of senior specialists and craftsmen;

6. Payrolls of professional officers and allowances for position of Head and Deputy Head of Department;

7. Payrolls of subordinate employees;

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1. Regional allowance: applicable to the persons who work in remote and isolated areas or areas with bad weather conditions.

This allowance consists of 7 levels: 0.1; 0.2; 0.3; 0.4; 0.5; 0.7 and 1.0 compared with the general minimum salary level.

2. Occupational responsibility allowances: applicable to part-time members of the Board of Directors, members of Supervisory Board (excluding the Chief of Supervisory Board) and those who perform work with required high sense of responsibility or assume work of non-leadership position.

This allowance consists of 4 levels: 0.1; 0.2; 0.3 and 0.5 compared with the general minimum salary rate.

3. Allowances for toxicity: applicable to persons perform their jobs in toxic and dangerous or extremely toxic and dangerous conditions but not yet included in the salary rate.

This allowance consists of 4 levels: 0.1; 0.2; 0.3 and 0.4 compared with the general minimum salary rate.

4. Mobility allowance: applicable to persons who perform their jobs that require a change of workplace and residence.

The allowance consists of 3 levels: 0.2; 0.4 and 0.6 compared with the general minimum salary rate.

5. Attraction allowance: applicable to persons who come to work in new economic zones, economic establishments and on islands far away from the mainland with extremely difficulty living conditions.

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The duration for allowance is from 3 - 5 years.

Article 5. Salary scale, payroll and salary allowance system as stipulated in Article 3 and Article 4 of this Decree as a basis for:

1. Negotiating salary in labor contracts;

2. Developing salary unit; implementing regulations on increasing salary level as agreed in labor contracts and collective labor agreements;

3. Paying and enjoying the benefits of social insurance and health insurance as provided for by law;

4. Paying salary for stopping work and the other benefits as stipulated by labor law;

5. Addressing other benefits as agreed upon by the employer and the employee and the provisions of the labor law.

Article 6. Salary must ensure the principle that salary is consistent with job and position or allowances for such position on the basis of criteria for workers’ technical level recognized, criteria for profession of officers and employees and company rating;

Article 7. Responsibilities of Ministry of Labor- Invalids and Social Affairs

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2. Assuming the prime responsibility for and coordinating with the Ministry of Home Affairs to guiding the arrangement and transfer from the old salary to new salary for members of Board of Directors (excluding General Director and Director) based on the payroll specified in Clause 3, Article 3 of this Decree;

3. Assuming the prime responsibility for and coordinating with the Ministry of Finance and the Ministries and sector concerned:

a) Requesting the Prime Minister to regulate the particular benefits with salary nature of several professions;

b) Issuing criteria for company rating. Particularly for special class companies, requesting the Prime Minister’s consideration and decision;

c) Guiding company to define the class and make registration with representative of owner; with the Ministry of Labor - Invalids and Social Affairs for companies of first class or higher and notify the Prime Minister of the special class companies.

Article 8. This Decree shall come into effect 15 days after its publication on the Gazette and replaces Decree No.26/CP dated May 23, 1993 of the Government on temporarily regulating new regulations on salary in enterprises, Decree No. 110/1997/ND-CP dated November 18, 1997 of the Government on adding the salary rate coefficient of managerial position and salary allowance for leadership position issued with Decree No.26/CP dated May 23, 1993, Decision No. 83/1998/QD-TTg dated April 15, 1998 of the Prime Minister concerning the regulation on salary and salary allowance of members of the Board of Directors, the Supervisory Board of State Corporations and large-scale independent State-owned enterprises.

All regulations stipulated in this Decree take effect on October 1, 2004.

Article 9. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, Chairmen of People's Committees of provinces and centrally-run cities are liable to execute this Decree. /.

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FOR THE GOVERNMENT
PRIME MINISTER




Phan Van Khai