Circular No. 08/2009/TT-BTC guiding the determination of needs, sources, and methods of disbursement for hardship allowances for officials, civil servants, public employees with low salaries and difficult living conditions, and armed forces, as well as adjustments to allowances for village cadres who retired in 2009.

CIRCULAR

Guidelines for determining needs, sources, and methods of disbursement to implement

 difficulties allowances for cadres, civil servants, public officials, and armed forces personnel

 with low salaries and difficult living conditions and adjusting allowances for

 cadres who retired in 2009

_________________________

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 169/2008/QĐ-TTg dated December 15, 2008 of the Prime Minister on difficulties allowances for cadres, civil servants, public officials, and armed forces personnel with low salaries and difficult living conditions (hereinafter referred to as Decision No. 169/2008/QĐ-TTg);

Pursuant to Decree No. 101/2008/NĐ-CP dated September 12, 2008 of the Government adjusting pensions, social insurance benefits, and monthly allowances for retired village cadres (hereinafter referred to as Decree No. 101/2008/NĐ-CP),

The Ministry of Finance guides the determination of needs, sources, and methods of disbursement to implement difficulties allowances for cadres, civil servants, public officials, and armed forces personnel and adjust allowances for retired village cadres in 2009 as follows:

 I. GENERAL PROVISIONS:

1. This Circular stipulates the determination of needs, sources, and methods of disbursement to implement difficulties allowances under Decision No. 169/2008/QĐ-TTg for state agencies, public service units; units under the armed forces; Party agencies, political-social organizations, and occupational-political social organizations, social organizations, social-occupational organizations, non-governmental organizations, projects, and international organizations based in Vietnam with cadres, civil servants, and public officials appointed by the State to work within the state budget and receiving salaries from the state budget according to the salary table prescribed by the State, and adjustment of allowances for retired village cadres under Decision No. 130-CP dated June 20, 1975 of the Council of Ministers and Decision No. 111-HĐBT dated October 13, 1981 of the Council of Ministers (hereinafter referred to as retired village cadres) as specified in Decree No. 101/2008/NĐ-CP.

2. Based on the provisions of Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP, ministries, ministerial-level agencies, government agencies, and other central agencies (hereinafter referred to as ministries and central agencies) and provincial-level cities directly under the central government have the responsibility to organize, guide, and compile the financial requirements and sources for implementing difficulties allowances and adjusting allowances for retired village cadres of their agencies, units, and subordinate levels in accordance with specific provisions of this Circular.

3. Ministries and central agencies, People's Committees at all levels, budgetary units at all levels, and budget users have the responsibility to determine and allocate resources to implement difficulties allowances and budget support (if any) to pay difficulties allowances to cadres, civil servants, and public officials of their units and adjust allowances for retired village cadres in accordance with regulations and the provisions of this Circular.

4. Management, accounting, and settlement of funds for difficulties allowances and adjustments for retired village cadres shall be carried out in accordance with the prescribed regulations and specific provisions of this Circular.

 II. SPECIFIC PROVISIONS:

1. Regarding the determination of financial needs to implement difficulties allowances as stipulated in Decision No. 169/2008/QĐ-TTg and adjustments for retired village cadres as stipulated in Decree No. 101/2008/NĐ-CP in 2009:

a) Financial needs to implement difficulties allowances under Decision No. 169/2008/QĐ-TTg are determined based on the number of subjects mentioned in Clause 2, Article 1 of Decision No. 169/2008/QĐ-TTg present as of January 1, 2009, and the allowance amount of VND 360,000/person.

The allowance of VND 360,000/person is paid according to the payroll period for four months (January, February, March, and April 2009) and is not used for contributions or benefits under social insurance or health insurance.

b) Financial needs to implement adjustments for allowances under Decree No. 101/2008/NĐ-CP are determined based on the number of village, town, and township cadres who have retired present as of January 1, 2009, and the additional adjustment amount between Decree No. 101/2008/NĐ-CP and the amount stipulated in Decree No. 184/2007/NĐ-CP.

2. Regarding the determination of sources to ensure financial needs to implement difficulties allowances as stipulated in Decision No. 169/2008/QĐ-TTg and adjustments for retired village cadres as stipulated in Decree No. 101/2008/NĐ-CP in 2009:

a) Principles regarding the use of financial resources in 2009 to implement Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP: Implemented similarly to the provisions at Point 2.1, Clause 2, Section II of Circular No. 02/2005/TT-BTC dated January 6, 2005 of the Ministry of Finance.

b) Financial resources to implement Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2009:

b1) Financial resources to implement Decision No. 169/2008/QĐ-TTg in 2009 for ministries and central agencies:

- For administrative state agencies, the Party, and mass organizations:

+ Utilize a minimum of 40% of retained revenue according to the 2009 regime (the remaining portion after using to implement Decree No. 94/2006/NĐ-CP dated September 7, 2006 and Decree No. 166/2007/NĐ-CP dated November 16, 2007 in 2009).

+ Utilize the savings from reducing 10% of regular expenditure in the 2009 budget (excluding salaries and salary-like increases over 2008 according to the minimum wage prescribed in Decree No. 166/2007/NĐ-CP and salary regulations in Decree No. 204/2004/NĐ-CP) compared to the 2008 budget (the 2008 budget includes the budget allocated by the competent authority and supplementary funding for salary increases according to Decree No. 166/2007/NĐ-CP if applicable) for each agency.

+ Any unused resources from salary reform and difficulties allowances in 2008 transferred to 2009 (if any).

- For state-owned public service units and those of the Party and mass organizations:

+ Use at least 40% of the amount retained under the regime of 2009; specifically for the health sector, 35%, after deducting costs for medicines, blood, infusions, chemicals, replacement materials, consumable materials (the remaining portion after having been used to implement Decree No. 166/2007/NĐ-CP dated November 16, 2007, Decree No. 94/2006/NĐ-CP dated September 7, 2006, Decree No. 118/2005/NĐ-CP dated September 15, 2005, Decree No. 204/2004/NĐ-CP dated December 14, 2004, and Decree No. 03/2003/NĐ-CP dated January 14, 2003 in 2009).

+ Use the source of savings from 10% of the regular expenditure budget for 2009 (excluding salaries, including salary increases compared to 2008 according to the minimum wage level stipulated in Decree No. 166/2007/NĐ-CP and the salary system stipulated in Decree No. 204/2004/NĐ-CP) increased compared to the budget for 2008 (the 2008 budget includes the budget assigned by the competent authority and the additional amount for implementing salary increases according to Decree No. 166/2007/NĐ-CP - if applicable) for each public institution.

+ Any unused resources from salary reform and difficulties allowances in 2008 transferred to 2009 (if any).

In cases where the sources provided for in paragraph b1 point b clause 2 section II above are less than the actual funding needs to implement Decision No. 169/2008/QĐ-TTg in 2009 as stipulated in clause 1 section II of this Circular, the central budget will supplement the shortfall for ministries and central agencies to ensure sufficient funding.

In cases where the sources provided for in paragraph b1 point b clause 2 section II above exceed the actual funding needs to implement Decision No. 169/2008/QĐ-TTg in 2009 as stipulated in clause 1 section II of this Circular, ministries and central agencies shall self-fund the implementation of Decision No. 169/2008/QĐ-TTg in 2009 as stipulated in clause 1 section II of this Circular; the remainder shall be used for implementing new salary increases when issued by the State; this remaining amount shall not be used for other purposes.

b2) Sources of funds to implement Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2009 of provinces and centrally-administered cities:

- Use the source of savings from 10% of the regular expenditure budget for 2009 (excluding salaries, including salary increases compared to 2008 according to the minimum wage level stipulated in Decree No. 166/2007/NĐ-CP and the salary system stipulated in Decree No. 204/2004/NĐ-CP) increased compared to the budget for 2008 (the 2008 budget includes the budget assigned by the competent authority and the additional amount for implementing salary increases according to Decree No. 166/2007/NĐ-CP - if applicable).

- The surplus amount (if any) after ensuring the funding needs for implementing salary reform according to Decree No. 93/2006/NĐ-CP dated September 7, 2006, Decree No. 94/2006/NĐ-CP dated September 7, 2006, Decree No. 166/2007/NĐ-CP dated November 16, 2007, and Decree No. 184/2007/NĐ-CP dated December 17, 2007 of the Government in 2009, from the following sources:

+ 50% of the increase in local government revenue (excluding the increase from land use fees) budgeted for 2008 compared to the budget for 2007 assigned by the Prime Minister;

+ 50% of the increase in local government revenue (excluding the increase from land use fees) budgeted for 2009 compared to the budget for 2008 assigned by the Prime Minister;

+ 50% of the increase in local government revenue (excluding the increase from land use fees) realized in 2008 compared to the budget for 2008 assigned by the Prime Minister. In cases where localities face difficulties, have low self-balancing ratios from local revenues, and small increases in revenue in 2008 compared to the budget assigned by the Prime Minister, the Ministry of Finance will consider specifically to determine the amount of revenue increase to be included in the source for implementing salary reform in 2009; simultaneously, it will compile and report to the Prime Minister on the results of implementation.

+ 10% of the savings from regular expenditure (excluding salaries, including salary-like payments) budgeted for spending in 2007;

+ 10% of the savings from regular expenditure (excluding salaries, including salary-like payments) budgeted for spending in 2008 increased compared to the budget for spending in 2007;

+ 40% of the amount retained under the regime of 2009 (specifically for the health sector, 35%, after deducting costs for medicines, blood, infusions, chemicals, replacement materials, consumable materials);

+ Source to implement additional salary; hardship allowances for civil servants, public officials, and armed forces personnel according to Decision No. 127/2008/QĐ-TTg dated September 15, 2008 of the Prime Minister; adjustment of monthly allowances for village cadres who retired according to Decree No. 101/2008/NĐ-CP dated September 12, 2008 of the Government in 2008 that was not used up and carried over;

+ The amount allocated from the central budget in the 2009 budget to ensure additional funding according to Decree No. 93/2006/NĐ-CP dated September 7, 2006, Decree No. 94/2006/NĐ-CP dated September 7, 2006, Decree No. 166/2007/NĐ-CP dated November 16, 2007, and Decree No. 184/2007/NĐ-CP dated December 17, 2007 of the Government.

In cases where the sources provided for in paragraph b2 Point b Clause 2 Section II above are less than the actual funding needs to implement Decision No. 169/2008/QĐ-TTg, 101/2008/NĐ-CP in 2009 as stipulated in Clause 1 Section II of this Circular, the central budget will supplement the shortfall for provinces and centrally-administered cities to ensure sufficient funding.

In cases where the sources provided for in paragraph b2 Point b Clause 2 Section II above exceed the actual funding needs to implement Decision No. 169/2008/QĐ-TTg, 101/2008/NĐ-CP in 2009 as stipulated in Clause 1 Section II of this Circular, provinces and centrally-administered cities shall self-fund the implementation of Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP as stipulated in Clause 1 Section II of this Circular; the remainder shall be used for implementing new salary increases when issued by the State; this remaining amount shall not be used for other purposes.

c) In special cases, where ministries, central agencies, and provinces, centrally-administered cities report large surpluses after ensuring the funding needs for salary reform according to the schedule, they shall report to the Ministry of Finance for consideration and resolution according to the prescribed regulations.

d) The expenses for implementing hardship allowances for personnel of the various levels of the trade union system shall be funded from the 2% trade union budget revenue; such expenses shall not be consolidated into the funding requirements for implementing hardship allowances of the ministries, central agencies, and provinces/cities directly under the Central Government.

đ) The expenses for implementing hardship allowances for the Vietnam Social Security System shall be guaranteed from the source of increased interest growth as prescribed.

e) The expenses for implementing hardship allowances for employees in agencies and units that have implemented cost allocation, where the decision on cost allocation by the competent authority has stipulated that during the allocation period, the unit must arrange within the allocated amount to ensure new policies and regulations (such as tax agencies, customs, state treasury, Vietnam Television, etc.), these agencies and units must ensure the funding for implementing hardship allowance within the total allocated budget.

3. Regarding the reporting system on the demand and funding sources for implementing Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP:

Ministries, central agencies, and provinces/cities directly under the Central Government are responsible for organizing, guiding, reviewing, and consolidating reports on the demand and funding sources for implementing Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2009 and submitting them to the Ministry of Finance no later than February 15, 2009 (including ministries, central agencies, and provinces/cities directly under the Central Government with sufficient funds to implement).

(Ministries and central agencies shall submit reports on demand and sources using attached forms 1, 2a, 2b, 2c; provinces and cities directly under the Central Government shall submit reports on demand and sources using attached forms 3a, 3b, 4).

4. Regarding the method of disbursing funds for implementing Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP:

a) For budget-funded units with more funding available to implement Decision No. 169/2008/QĐ-TTg than the required funding for implementing Decision No. 169/2008/QĐ-TTg, they may proactively use these funds to pay hardship allowances to cadres, civil servants, and public officials of their own units according to the prescribed regulations.

b) For ministries, central agencies, provinces/cities directly under the Central Government, and budget-funded units with greater funding needs for implementing Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP than the available funding for implementing Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP as stipulated in this Circular:

- Based on the reports submitted by ministries, central agencies, and provinces/cities directly under the Central Government, the Ministry of Finance will review and notify additional funding to ensure that ministries, central agencies, and provinces/cities directly under the Central Government have sufficient funding to implement Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP.

- On this basis, ministries and central agencies will notify additional funding to subordinate budget-funded units; local financial authorities at all levels will report to the People's Committees at the same level to notify additional funding to budgetary units at their own level and lower-level budgets to implement hardship allowances for cadres, civil servants, and public officials and additional allowances for retired village cadres according to the prescribed regulations (after utilizing the funding for implementing allowances as prescribed but still lacking funding).

- Local financial authorities at all levels will implement the reduction of the budget estimate to implement and record it in the supplementary targeted budget for 2009 based on the notification of additional funding mentioned above.

- Budgetary units at Level I are responsible for allocating the notification of additional funding mentioned above to subordinate budget-funded units (after utilizing the funding for implementing allowances as prescribed but still lacking funding). Budget-funded units will withdraw money from the State Treasury within the allocated additional amount and proactively use retained income according to the regulations and save 10% of regular expenditures to pay hardship allowances to cadres, civil servants, and public officials of their own units according to the prescribed regulations.

c) For ministries, central agencies, and provinces/cities directly under the Central Government with more funding available to implement Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP than the required funding for implementing Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP:

- Ministries, central agencies, and provinces/cities directly under the Central Government shall direct and guide subordinate budget-funded units and budgetary units with more funding available to implement Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP to proactively use these funds to pay hardship allowances to cadres, civil servants, and public officials and additional allowances for retired village cadres according to the prescribed regulations.

- Provinces and cities directly under the Central Government shall proactively use increased local government revenue, save 10% of regular expenditures (the portion retained centrally) to supplement the funding for implementing Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP for budgetary units at their own level and lower-level budgets that lack funding for implementing Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP following the similar process as mentioned in point b above.

d) While awaiting authorized bodies to provide additional funding (for units lacking funding), budget-funded units and commune budgets may proactively use the 2009 budget allocation and retained income according to regulations to promptly pay hardship allowances to cadres, civil servants, public officials, and armed forces, and additional allowances for retired village cadres. The amounts already used will be reimbursed from the additional funding provided by the authorized body for implementing hardship allowances.

đ) Unutilized funding for implementing Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP shall be reserved for implementing the new salary increase policy when the State continues to issue; this remaining funding shall not be used for other purposes.

e) Accounting and settlement: The accounting and settlement of funding for implementing hardship allowances for cadres, civil servants, public officials, and armed forces, and additional allowances for retired village cadres shall be carried out in accordance with the provisions of the State Budget Law and current legal documents.

The expenses for hardship allowances under Decision No. 169/2008/QĐ-TTg in 2009 shall be recorded in Section 6400, Subsection 6449. The expenses for additional allowances for retired village cadres under Decree No. 101/2008/NĐ-CP in 2009 shall be recorded in Section 7150, Subsection 7151.

III. IMPLEMENTATION:

1. Based on the provisions of this Circular, the ministries, central agencies, and provincial/municipal people's committees directly under the central government shall be responsible for organizing and guiding agencies, units, and subordinate levels to determine the needs and sources of funds to implement Decision No. 169/2008/QĐ-TTg and Decree No. 101/2008/NĐ-CP in 2009.

Depending on the specific circumstances of their own agencies and localities and the provisions of this Circular, the heads of ministries, central agencies, provincial/municipal people's committees shall stipulate the timeframes and reporting forms for units and subordinate budget levels in accordance with the regulations on consolidation and reporting to the Ministry of Finance as set forth in this Circular.

2. This Circular takes effect from the date Decision No. 169/2008/QĐ-TTg comes into force (from January 13, 2009). Any difficulties encountered during implementation should be reported to the Ministry of Finance for prompt resolution./.