Decree No. 03/2001/ND-CP Amending and Supplementing Certain Provisions of Government Decree No. 28/CP dated March 28, 1997 on Reforming Salary Management and Income in State-Owned Enterprises

DECREE OF THE GOVERNMENT

Amending and supplementing some articles of Decree No. 28/CP dated March 28, 1997 of the Government on reforming salary and income management in state-owned enterprises

concerning the reform of salary and income management in state-owned enterprises

_______________________________

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Based on the Labor Code dated June 23, 1994;

Pursuant to the State Enterprise Law on April 20, 1995;

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

DECREE:

Article 1. Amending and supplementing some articles of Decree No. 28/CP dated March 28, 1997 of the Government on reforming salary and income management in state-owned enterprises as follows:

1. Amending Clause 2, Article 1 as follows:

''2. When applying the adjustment factor to increase the minimum wage level, enterprises must ensure all conditions: fulfilling the obligation to pay state budget according to the provisions of the law; profit realization not lower than the profit realization of the previous year (except in special cases permitted by the State) and ensuring the wage increase rate lower than the labor productivity growth rate.

For enterprises that fully comply with the above regulations, due to the need for work requiring the continuous use of more than 50% of the total workforce with high professional qualifications and technical skills, and the profit plan built higher than 5% compared to the profit realization of the previous year, they may apply an adjustment factor to increase the minimum wage up to twice the minimum wage set by the State as the basis for calculating the unit price of wages.''

2. Supplementing a paragraph at the end of Article 1 as follows:

''Ministries managing industries and sectors, People's Committees of provinces and centrally-run cities, Management Councils of State-owned Joint Stock Corporations established pursuant to Decision No. 91/TTg dated March 7, 1994 of the Prime Minister shall base their assessment of profit targets on the actual performance of production and business tasks in the previous year and the enterprise's proposal, to determine the unit price of wages and settle the wage fund implementation of the enterprise in accordance with Clause 1 of this Article.'' Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).3. Amending Clause 2, Article 5 as follows

''Ensuring reasonable average wage relations between state-owned enterprises.'':

4. Supplementing Clause 4 into Article 5 as follows

''4. State-owned enterprises with relatively stable production and business conditions may be considered and assigned a stable wage unit price for a period of 2 to 3 years based on ensuring all conditions stipulated in Clause 1 of this Article.'':

5. Supplementing Clause 5 into Article 5 as follows

''5. When enterprises settle the wage fund implementation, if they ensure all principles stipulated in Clause 1 of this Article and their realized profit exceeds the planned profit, the enterprise may allocate a portion of the additional profit to supplement the wage fund, but not exceeding three months' average wage of the enterprise for direct distribution to workers and reserve for the next year's wage fund.'':

6. Amending Clause 1, Article 6 as follows:

''1. Improving labor management:

Annually, based on technical equipment, production processes, workload and quality requirements for production and business, enterprises develop a labor utilization plan, particularly emphasizing the reduction of indirect labor. This plan must be approved by the Enterprise Management Council or reviewed by the superior authority before the enterprise recruits labor.

The Management Council and General Director of the enterprise are responsible for resolving all benefits for workers without jobs due to excessive recruitment beyond production and business needs from the enterprise's funds.''

7. Removing the content of the fourth bullet point in Clause 1, Article 7.

8. Amending Article 8 as follows

''Ministries managing industries and sectors; Departments of Labor, Invalids and Social Affairs; State-owned enterprises have the responsibility to consolidate specialized units for labor and wage work, and strengthen the cadre and staff working in this field in accordance with the Labor Code and the Law on State-Owned Enterprises, focusing on improving the construction of labor norms, labor recruitment, wage unit price construction, and wage payment linked to production and business tasks, productivity, quality, and business efficiency; strictly managing labor in state-owned enterprises, and addressing the issue of excessive labor recruitment.'':

1. The Ministry of Labor, Invalids and Social Affairs shall take the lead and coordinate with the Ministry of Construction and relevant ministries and sectors to guide the application of Decree No. 28/CP dated March 28, 1997 for construction enterprises and public service enterprises, which are allowed to choose the adjustment factor to increase the minimum wage according to the regulations, but must ensure increased labor productivity, comply with economic and technical norms issued by competent authorities, not increase state capital, and fulfill all tax and profit obligations as prescribed by law.

Article 2.

2. The Ministry of Labor, Invalids and Social Affairs shall take the lead and coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Fisheries, the Ministry of Commerce, and relevant ministries and sectors to guide the application for enterprises in agriculture, forestry, fisheries, and commerce operating under cost-sharing mechanisms, revenue-sharing, and profit-sharing systems.

After consulting with the Ministry of Finance and the Vietnam General Confederation of Labor, guiding the implementation of this Decree.

Article 3. Ministry of Labor, Invalids and Social Affairs This Decree takes effect from January 1, 2001.

Article 4. Provincial People's Committees, centrally-run city People's Committees, and state-owned enterprises are responsible for implementing this Decree./.

Article 5. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The people's committees of provinces and centrally governed cities and state-owned enterprises shall be responsible for implementing this Decree./.