Joint Circular No. 03/2001/TTLT/BLDTBXH-BTC-UBDTMN guiding the implementation of regional allowances

JOINT CIRCULAR

Guidelines for Implementing Regional Allowance Regulations

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Implementing Decree No. 25/CP and Decree No. 26/CP dated May 23, 1993 of the Government on the temporary salary system for civil servants, workers, administrative officials, public service staff, armed forces, and enterprises, the Ministry of Labor, Invalids, and Social Affairs issued Circular No. 15/LDTBXH-TT dated June 2, 1993 to guide the implementation of regional allowances. After many years of implementation, due to changes in administrative boundaries of some communes, districts, provinces or improvements in economic and social conditions in some localities, the levels of regional allowances applied to each area as stipulated in Circular No. 15/LDTBXH-TT have revealed certain unreasonable aspects that need to be amended and supplemented.

To implement the Prime Minister's opinion in Official Letter No. 4734/VPCP-VX dated October 31, 2000 of the Government Office, after reaching consensus with the Government Organizational Cadre Board, the Joint Circular of the Ministry of Labor, Invalids, and Social Affairs - Ministry of Finance - Committee for Ethnic Minorities and Mountainous Areas guides the implementation of regional allowances as follows:

1. OBJECTIVES AND REQUIREMENTS

Regional allowances for those living and working in areas with harsh climatic conditions; remote, isolated, underdeveloped infrastructure, difficult travel and living conditions contribute to stabilizing and attracting labor.

2. APPLICABLE OBJECTS

- State, Party, and mass organization officials elected to office;

- Civil servants, administrative and public service staff, including contractual employees within the staffing quota (if any);

- Officials, civil servants, and workers in Party and mass organizations;

- Workers in enterprises;

- Officers and personnel receiving salaries and allowances (living expenses) in the armed forces;

- Retirees and those who stopped working due to loss of labor capacity, work-related accidents, occupational diseases and are receiving monthly benefits instead of salaries;

- War invalids (including type B war invalids and those enjoying policies similar to war invalids), disabled veterans receiving monthly benefits but not receiving salaries or social insurance benefits.

3. PRINCIPLES OF DETERMINATION AND PAYMENT

REGIONAL ALLOWANCES

A. PRINCIPLES FOR DETERMINING REGIONAL ALLOWANCES:

1. Factors for determining regional allowances:

- Natural geographic factors such as: harsh climate, manifested in extreme temperature, humidity, air pressure, wind speed, altitude, etc., higher or lower than normal, affecting human health;

- Remote, isolated (sparse population, far from cultural, political, economic centers, far from the mainland...), poor roads, bridges, schools, medical facilities, trade services, culture, difficult travel, affecting material and spiritual life.

Additionally, when determining regional allowances, special difficulties such as borders, islands, swamps may also be considered.

2. Regional allowances are mainly determined based on the administrative boundary of communes, wards, towns (collectively referred to as commune level). Organizations, units, and enterprises located in which commune will enjoy the regional allowance level of that commune. In some exceptional cases located far from populated areas or adjacent to multiple communes, separate regional allowance levels may be specified.

3. When factors used to determine regional allowances change, or the commune boundaries change (split, merge, newly established...), regional allowances will be re-determined or adjusted.

B. LEVELS OF REGIONAL ALLOWANCES:

1. Regional allowances are set at seven levels: 0.1; 0.2; 0.3; 0.4; 0.5; 0.7 and 1.0 compared to the national minimum wage rate prescribed by the State. The level of 1.0 compared to the national minimum wage rate only applies to particularly difficult and arduous sea islands such as the Spratly Islands belonging to Khanh Hoa Province.

The amount of regional allowance is calculated using the following formula:

Amount of regional allowance = Regional allowance coefficient x National minimum wage rate prescribed by the State

Example 1: In 2001, with the national minimum wage rate prescribed by the State being 210,000 VND/month, the amounts of regional allowances calculated in money are:

For non-commissioned officers and soldiers in the armed forces receiving allowances, the amount of regional allowance is calculated based on the rank allowance of a second-class private. The amount of regional allowance is calculated according to the following formula:

Amount of regional allowance = Regional allowance coefficient x National minimum wage rate prescribed by the State x 0.3

Example 2: In 2001, with the national minimum wage rate prescribed by the State being 210,000 VND/month, the amounts of regional allowances calculated in money for non-commissioned officers and soldiers in the armed forces are:

2. Based on the factors for determination and the levels of regional allowances mentioned above, after exchanging opinions with the People's Committees of provinces and centrally-administered cities and relevant ministries and sectors, the Joint Ministries issue the list of communes and some units entitled to regional allowances in Appendix 1 attached to this Circular.

In the current situation, to facilitate the adjustment of regional allowances, for communes or units where the reduction of regional allowances is adjusted, they will retain the existing regional allowance level as stipulated in Circular No. 15/LDTBXH-TT dated June 2, 1993 of the Ministry of Labor, Invalids, and Social Affairs (Appendix 2 attached) for one year, from January 1, 2001 to December 31, 2001. From January 1, 2002, they will receive the new regional allowance level prescribed in Appendix 1 of this Circular.

C. METHOD OF CALCULATING AND PAYING REGIONAL ALLOWANCES:

1. Regional allowances are determined and paid based on the place of work for those in office; determined, calculated, and paid based on the place of permanent residence and receipt of pension or monthly benefit for retirees and those entitled to benefits as prescribed.

2. Regional allowances are paid together with salaries and monthly benefits. For those receiving salaries and benefits from the state budget as prescribed, regional allowances are paid from the state budget according to the current budget hierarchy: local units managed by the local budget; central units managed by the central budget within the annual budget allocated to the unit.

For enterprises, regional allowances are included in the unit price of wages and accounted for in production costs or circulation fees.

3. In cases of business trips, study, treatment, or convalescence for a period of one month or more, the regional allowance shall be enjoyed at the level prescribed at the place of business trip, study, treatment, or convalescence; if the new location does not have a regional allowance, then the regional allowance at the previous location will cease.

4. Implementation organization.

The People's Committee of provinces and centrally governed cities, heads of ministries and sectors shall base on the list of communes and certain units entitled to the regional allowance level to organize implementation. In cases requiring adjustment or supplementation of the regional allowance, the following requirements must be ensured:

1. On the principle of territorial management, agencies and units located in localities shall submit documents to the People's Committee of the district and the People's Committee of the district shall be responsible for proposing to the People's Committee of the province or centrally governed city to consider and balance comprehensively, thereafter submitting documents to the Joint Ministry of Labor, Invalids and Social Affairs - Ministry of Finance - Ethnic Minority and Mountainous Areas Committee for consideration and decision.

Specifically, for agencies, units, and enterprises under ministries and sectors located far from the population or adjacent to many communes, the heads of ministries and sectors shall propose to the Joint Ministry for comprehensive consideration and balancing.

2. The dossier for requesting the resolution to enjoy the regional allowance includes the following contents:

a. Scope of request for regional allowance (commune, ward, town, provincial city): explanation and clear demarcation of the administrative boundaries of the unit requesting the regional allowance, drawing a map of the administrative boundary of the commune with water and land transportation routes, and height above sea level.

b. Detailed explanation of factors related to the determination of the regional allowance, the current level of regional allowance of neighboring communes (if any), and the proposed application level.

c. Estimated number of beneficiaries of the regional allowance in the locality and the financial needs to implement the adjustment or supplementation of the regional allowance for relevant beneficiaries in the locality (including those receiving salaries or allowances from the state budget).

The Department of Labor, Invalids and Social Affairs shall take the lead in coordinating with the Department of Finance and Price Control, the Ethnic Minorities and Mountainous Areas Board, and related agencies to assist the People's Committee of the province or centrally governed city in organizing the implementation of this Circular and proposing to the Joint Ministry for adjustment of the regional allowance when necessary.

This Circular takes effect from January 1, 2001, replacing Circular No. 15/LDTBXH-TT dated June 2, 1993, issued by the Ministry of Labor, Invalids and Social Affairs guiding the implementation of the regional allowance system.

During the implementation process, if there are difficulties, ministries, sectors, and localities are requested to report to the Joint Ministry for examination and resolution./.