Circular No. 08/2006/TT-BLDTBXH guiding the wage system and allowances for workers, staff, and officials directly involved in constructing the Dong Nai 4 Hydropower Project.

CIRCULAR

Guidelines for implementing wage and salary allowances for workers, employees, and officials constructing the Dong Nai 4 Hydropower Project

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Pursuant to Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government on the wage scale, salary table, and salary allowances in state-owned companies, and Circular No. 3656/VPCP-VX dated July 12, 2006 of the Government Office, the Ministry of Labor, Invalids, and Social Affairs guides the implementation of wage and allowance systems for workers, employees, and officials constructing the Dong Nai 4 Hydropower Project as follows:

I. SCOPE AND APPLICABLE SUBJECTS.

1\. The scope of application includes workers, employees, and officials directly involved in constructing the Dong Nai 4 Hydropower Project located in Lam Dong and Dak Nong provinces.

2\. Applicable subjects:

a\. Workers, employees, and officials directly involved in construction;

b\. Workers, employees, and officials under the Project Management Board directly involved in construction;

c\. Consulting, designing workers, employees, and officials working at the project site;

d\. Workers, employees, and officials directly involved in surveying to serve the technical design of the project.

Subjects mentioned in points c and d above shall not apply to those receiving attraction allowances and hazardous work allowances already agreed upon in Document No. 2807/LĐTBXH dated August 29, 2005 of the Ministry of Labor, Invalids, and Social Affairs regarding allowances for surveying staff in power projects.

II. APPLIED REGIME.

1\. Wage and salary allowance system:

a\. Minimum wage:

- Before October 1, 2005, the general minimum wage of VND 290,000/month as stipulated in Decree No. 203/2004/NĐ-CP dated December 14, 2004 shall be applied.

- From October 1, 2005 onwards, the minimum wage of VND 350,000/month as stipulated in Decree No. 118/2005/NĐ-CP dated September 15, 2005 shall be applied.

b\. Job grade wages:

- Job grade: determined according to specific jobs based on the basic construction cost estimate issued by the Ministry of Construction;

- Job grade wages: calculated according to the corresponding wage coefficient of each specific job grade based on the aforementioned cost estimate.

c\. Salary allowance system:

- Regional allowance, construction project, or construction item located in which area shall be calculated according to the regional allowance rate for that area;

- Attraction allowance, applied at 30% of job grade, position, or specialized vocational wage;

- Mobility allowance, applied at 0.4 times the general minimum wage.

d\. Job grade wages and the allowances mentioned in points b and c above shall be calculated as follows:

- For construction work volume completed before October 1, 2004, including wages and allowances for surveyors, designers, and consultants, shall be applied according to Scale A6, Group IV issued with Decree No. 26/CP dated May 23, 1993, and allowance systems according to Circular No. 03/2001/TTLT-BLĐTBXH-BTC-UBDTMN dated January 18, 2001 guiding the implementation of regional allowance systems; Circular Nos. 16/LĐTBXH-TT and 19/LĐTBXH-TT dated June 2, 1993 guiding the implementation of attraction and mobility allowances.

- For construction work volume implemented from October 1, 2004 onwards, including wages and allowances for surveyors, designers, and consultants, shall be applied according to Scale A.1.8, Group III issued with Decree No. 205/2004/NĐ-CP dated December 14, 2004, and allowance systems according to Joint Circular Nos. 10/2005/TTLT-BNV-BLĐTBXH-BTC and 11/2005/TTLT-BNV-BLĐTBXH-BTC-UBDT dated January 5, 2005 guiding the implementation of attraction and regional allowances; Circular No. 05/2005/TT-BLĐTBXH dated January 5, 2005 guiding the implementation of mobility allowances in state-owned enterprises.

2\. Unstable production factor coefficient, applied at 15% of job grade, position, or specialized vocational wage.

3\. Midday meal allowance, applied at VND 5,000/person/day. The organization and implementation of midday meals shall follow Circular No. 15/1999/TT-BLĐTBXH dated June 22, 1999 guiding the implementation of midday meal allowances for workers and officials working in state-owned enterprises. The application of midday meal allowances shall commence from July 12, 2006.

III. IMPLEMENTATION:

1\. Source of funding.

a\. The provisions set out in Points 1, 2, and 3, Section II of this Circular, applicable to workers, employees, and officials directly engaged in construction, shall be included in labor costs in the construction budget. For workers, employees, and officials under the Project Management Board, these costs shall be included in the Project Management Board's budget.

b\. The provisions set out in Point 1, Section II of this Circular, applicable to surveyors, designers, and consultants directly working at the project site, shall be included in labor costs in the consulting and design budget.

c\. Midday meal costs shall be included in the project budget but not within labor costs.

d\. Additional funding sources to implement the provisions set out in Section II of this Circular shall be sourced from the contingency fund of the project.

2\. Responsibilities of Vietnam Electricity Corporation (project sponsor)

a\. Based on the quantity determined according to the technical design or construction drawings or the work requirements of the project, the applicable systems stipulated in Section II of this Circular and the Circular guiding the preparation and management of project investment construction costs, calculate labor costs in the project budget.

b\. Based on the quantity of work completed and accepted, and the wage rates and midday meal costs included in the project budget, temporarily advance and settle payments to the construction units.

3\. Construction units, based on the completed work volume, wage rates, and midday meal costs included in the project budget temporarily advanced or settled by the project sponsor, organize timely and full payment to workers linked to productivity, work volume, quality, and project progress.

4\. The Ministry of Industry shall inspect whether the project sponsor has incorporated the applicable systems stipulated in Section II of this Circular into the unit price and project budget.

5/ The Ministry of Agriculture and Rural Development and the Ministry of Construction shall inspect construction units of projects to ensure compliance with the regulations stipulated in this Circular.

IV. EFFECTIVE DATE OF IMPLEMENTATION:

This Circular shall take effect fifteen days from the date of publication in the Official Gazette.

The provisions set forth in this Circular shall be implemented from the start of construction until the completion of the project, except for the mid-shift meal allowance which shall be implemented from July 12, 2006 until the completion of the project.

In the course of implementation, if there are any difficulties, the relevant ministries and enterprises are requested to report to the Ministry of Labor, Invalids and Social Affairs for study and resolution./.