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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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