THE GOVERNMENT
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 03/2003/ND-CP
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Hanoi, January 15, 2003
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DECREE
OF THE GOVERNMENT
NO. 03/2003/ND-CP DATED JANUARY 15, 2003 ON ADJUSTMENT OF WAGES, SOCIAL
SUBSIDIES AND ONE-STEP INNOVATION OF WAGE MANAGEMENT MECHANISM
THE GOVERNMENT
Pursuant to the Law on Government
Organization dated December 25, 2001;
Pursuant to the Labor Code dated June 23, 1994 and the Law on amendments to the
Labor Code dated April 2, 2002;
Pursuant to the Resolution of the 11th National Assembly in the second session:
Resolution No. 09/2002/QH11 dated November 28, 2002 "on the state budget
estimate of 2003" and Resolution No. 14/2002/QH11 December 16, 2002
"on the mission of 2003";
At the request of the Minister of Home Affairs, the Minister of Labor, War
Invalids and Social Affairs and the Minister of Finance,
HEREBY DECREES:
Article 1. From January 1, 2003, adjust
the minimum wages, subsidies and subsistence allowances for the entities on
wages, allowances, subsidies and subsistence allowances as follows:
1. Raise the minimum wage
from VND 210,000/month as prescribed in Decree No. 77/2000/ND-CP dated December
15, 2000 of the Government to VND 290,000/month applicable to wage and
allowance earners from the state budget and employees in enterprises (except
foreign-invested enterprises in Vietnam).
2. Raise the monthly
subsistence allowance for commune, ward and township officials who are working
and retired as prescribed in Decree No. 77/2000/ND-CP dated December 15, 2000
of the Government corresponding to an increase in the minimum wage from VND
210,000/month to VND 290,000/month.
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a) Increase by 46% of pensions for retirees
according to the Government's Decree No. 218/CP dated December 27, 1961, the
Government's Decree No. 161/CP dated October 30, 1964 and amendments
promulgated before September 18, 1985.
b) Increase by 42% of pensions for retirees
according to Decree No. 236/HDBT dated September 18, 1985 of the Council of
Cabinet (now the Government).
c) Increase by 38.1% of pensions for retirees
according to Decree No. 43/CP dated June 22, 1993, Decree No. 66/CP dated
September 30, 1993, Decree No. 12/CP dated January 26, 1995 and Decree No.
45/CP dated July 15, 1995 of the Government.
d) Increase by 38.1% of work-capacity loss
allowance, and social insurance subsidies for those receiving social insurance
subsidies.
4. Increase by 38.1% of
the allowance fund for people with meritorious services compared to the current
fund (eligible entities of 2003) according to the provisions of Decree No.
77/2000/ND-CP dated December 15, 2000 of the Government.
Article 2. Budget allocation in 2003 to
ensure the source of funds for adjustment of wages and social subsidies:
1. Ministries, central agencies and local
governments must, regarding budget allocation, request each administration
authority, each public sector entity to set aside 10% of funding for recurrent
expenditures (except wages and wage-like amounts) to make wage adjustments.
2. Revenue-generating
public sector entities (including those that have implemented the financial
mechanism under the Government's Decree No. 10/2002/ND-CP dated January 16,
2002) must set aside at least 40% of the retained revenue source (at least 35%
for the health sector alone) to make wage adjustments.
3. Administration authority with prescribed
revenue sources shall set aside at least 40% of the revenue sources in
accordance with the regime to make wage adjustments.
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5. The Ministry of Finance shall arrange the
central budget to ensure the payment of pensions to those who retire before
January 1, 1995 (those who retire from January 1, 1995 or later will be paid by
the Social Security); ensure the payment of subsidies to people with
meritorious services; propose the Prime Minister to decide additional sources
of funds for ministries, central authorities and local governments in case Clauses
1, 2, 3 and 4 of this Article have been strictly followed, but they are still
underfunded.
Article 3. Implementation of new
regulations on payroll, wages and income management for administration
authorities and public sector entities as follows:
1. The regulatory bodies, administrative
agencies of the Party and mass organizations shall expand implementation of
fixed payroll and administrative management according to the provisions of
Decision No. 192/2001/QD-TTg dated December 17, 2001 of the Prime Minister; and
also cut down of personnel on payroll according to Resolution No. 16
/2000/NQ-CP dated October 18, 2000 of the Government.
2. The public sector entities shall exercise
their autonomy in organizing the performance of tasks, using payrolls and paying
salaries to their officials and public employees according to applicable
regulations.
Article 4.
1. The Ministry of Home
Affairs shall take charge and coordinate with concerned ministries and central
authorities in:
a) Guiding the adjustment of the minimum wages
and subsistence allowances for the earners of wages, allowances and subsistence
allowances under the state budget specified in Clauses 1 and 2, Article 1 of
this Decree.
b) Guiding the management of payroll and wage
payment to administration authorities specified in Clause 1, Article 3 of this
Decree.
c) Guiding the implementation of the autonomy
mechanism on task performance, payroll use and wage payment for public sector
entities specified in Clause 2, Article 3 of this Decree.
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a) Guiding the adjustment of the minimum wages
for enterprises specified in Clause 1, Article 1 of this Decree.
b) Guiding the adjustment of pensions, social
subsidies and allowances for people with meritorious services specified in
Clauses 3 and 4, Article 1 of this Decree.
3. The Ministry of Finance
shall take charge and coordinate with concerned ministries and central authorities
in:
a) Guiding assurance of sources for adjustment
of wages and social subsidies specified in Article 2 of this Decree.
b) After receiving the Prime Minister's
decision, allocating extra funds to underfunded sources to pay the increased
wage in the ministries, central authorities and local governments specified in
Clause 5, Article 2 of this Decree.
c) Inspecting and urging ministries, central
authorities and local governments to take measures to ensure the source of
additional wage payment specified in Clauses 1, 2, 3 and 4, Article 2 of this
Decree.
4. The Ministry of
Education and Training shall take charge and coordinate with concerned
ministries and central authorities in:
a) Proposing the Prime Minister to promulgate a
Decision replacing Decision No. 70/1998/QD-TTg dated March 31, 1998 of the
Prime Minister on the collection and use of tuition fees of public educational
and training institutions under the national education system, in order to
implement Clause 2, Article 2 of this Decree from January 1, 2003.
b) Implementing the Government's Decree No.
10/2002/ND-CP dated January 16, 2002 for educational and training institutions
and revenue-generating public sector entities under their management.
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a) Proposing the Government to promulgate a
Decree replacing Decree No. 95/CP dated August 27, 1994 of the Government on
partial collection of hospital charges and Decree No. 33/CP dated May 23, 1995
of the Government on the amendment of Clause 1, Article 6 of Decree No. 95/CP,
to implement Clause 2, Article 2 of this Decree from January 1, 2003.
b) Implementing the Government's Decree No.
10/2002/ND-CP dated January 16, 2002 for medical examination and treatment
establishments and revenue-generating public sector entities under their
management.
6. Ministries and
ministerial-level agencies are responsible for:
a) Amending or proposing the Government or the
Prime Minister to amend the regime of collection, distribution and use of
revenues, charges and fees within their competence, in order to implement
Clauses 2 and 3 Article 2 of this Decree from January 1, 2003.
b) Implementing the Government's Decree No.
10/2002/ND-CP dated January 16, 2002 for revenue-generating public sector
entities under their management.
7. Documents of ministries and ministerial-level
agencies that provide guidelines for this Decree (stated in Clauses 1, 2 and 3
of this Article) and documents submitted to the Government or Prime Minister
for amendments (mentioned in Point a of Clauses 4, 5 and 6 of this Article)
must be promulgated in the first quarter of 2003.
8. People's Committees of
provinces and centrally affiliated cities are responsible for:
a) Implementing measures to secure sources for
adjustment of wages and social subsidies according to Clauses 1, 2, 3 and 4,
Article 2 of this Decree.
b) Implementing the Government's Decree No.
10/2002/ND-CP dated January 16, 2002 for revenue-generating public sector
entities under their management.
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Article 6.
1. This Decree comes into force 15 days after
its publication in the Official Gazette.
2. The wage adjustment
amount specified in Clause 1, Article 1 of this Decree is used to calculate the
severance e for redundant employees according to Decree No. 41/2002/ND-CP dated
April 11, 2002 by the Government and for those who quit their jobs due to
payroll downsizing according to Resolution No. 16/2000/NQ-CP dated October 18,
2000 of the Government for the number of working years since 2003, number of
working years from 2002 and earlier calculated according to the guidance before
January 1, 2003.
Regulations on calculation of severance pay e
for redundant employees in this Decree replace the provisions on calculation of
severance pay for redundant employees and employees who quit their jobs due to
payroll downsizing specified in Decree No. 41/ 2002/ND-CP dated April 11, 2002
of the Government and Resolution No. 16/2000/NQ-CP dated October 18, 2000 of
the Government.
3. Deductions and entitlements based on wages or
subsistence allowances as prescribed by the State shall be recalculated
corresponding to the adjustment of the minimum wages and subsistence allowances
specified in this Decree.
Article 7. The ministers, the heads of
the ministerial-level agencies, the heads of Governmental agencies, the
presidents of the People's Committees of the provinces and centrally-affiliated
cities shall implement this Decree.
Phan Van
Khai
(Signed)
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