Nghị định 03/2003/NĐ-CP về điều chỉnh tiền lương, trợ cấp xã hội và đổi mới một bước cơ chế quản lý tiền lương

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.

3. Raise monthly pension and social subsidy compared to the provisions of Decree No. 77/2000/ND-CP of December 15, 2000 of the Government as follows:

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.

4. The local budget shall allocate 50% of the revenue increase in 2002 (the difference between the actual revenue transferred to the state budget by December 31, 2002 compared with the revenue estimate assigned by the People's Council of the province or city at the beginning of the year) and 50% increase in revenue estimate assigned by the Prime Minister in 2003 compared with the revenue estimate assigned by the Prime Minister in 2002 to adjust wages; set aside 50% of the revenue increase in 2003 compared with the estimate assigned by the Prime Minister in 2003 to adjust the wages and save for 2004.

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.

2. The Ministry of Labor, War Invalids and Social Affairs shall take charge and coordinate with concerned ministries and central authorities in:

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.

5. The Ministry of Health shall take charge and coordinate with concerned ministries and central authorities in:

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.

Article 5. The Ministry of National Defense and the Ministry of Public Security shall, after obtaining an agreement from the Ministry of Home Affairs, the Ministry of Finance, and the Ministry of Labor, War Invalids and Social Affairs, guide the implementation of this Decree with respect to their regulated entities.

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.

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