JOINT CIRCULAR No. 1/LB-TT GUIDING THE IMPLEMENTATION OF SALARY REGIMES AND CERTAIN OTHER BENEFITS FOR WORKERS AND STATE EMPLOYEES WORKING IN LAO PEOPLE'S DEMOCRATIC REPUBLIC AND CAMBODIA

JOINT CIRCULAR

LABOUR - VETERANS AND SOCIAL AFFAIRS - FINANCE

Guidelines for Implementing Salary Systems and Certain Preferential Policies for Workers and Civil Servants Working in Laos and Cambodia

Implementing Decision No. 278-CT dated October 31, 1986, of the Chairman of the Council of Ministers on policies and regulations for workers and civil servants working in Laos and Cambodia, after exchanging opinions with relevant ministries and sectors, the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance provide guidelines for implementing salary systems and certain preferential policies as follows:

I. Scope

1. Scope of Application:

Workers and civil servants from various ministries, sectors, and localities currently working in Laos and Cambodia who are not supported by the host country for food and living expenses include:

a) Workers and civil servants constructing projects under contract, aid projects, loan projects, or gift projects to the host country.

b) Workers and civil servants working under bilateral or multilateral cooperation plans in production, resource exploration, and exploitation fields such as industry, agriculture, forestry, water resources, power, mining exploration, geology, surveying and mapping, road construction, etc.

2. Not within the scope of application include:

a) Workers and civil servants serving as experts or supporting experts whose food and living expenses are covered by the host country.

b) Workers and civil servants working at representative offices of our country in Laos and Cambodia such as diplomatic, trade, military, press, radio, television, news agency, etc.

c) Workers and civil servants on short-term missions where all costs are covered by either our country or the host country.

II. Salary System and Allowances

Based on the salary system stipulated in Decree No. 235-HĐBT dated September 18, 1985, of the Council of Ministers, workers and civil servants working in Laos and Cambodia shall enjoy the following salary and allowance systems:

1. Grade or Position Salary:

Workers and civil servants working in Laos and Cambodia shall be entitled to salaries according to the salary scales and tables prescribed in Decree No. 235-HĐBT dated September 18, 1985, and the guiding circulars of the Ministry of Labor, depending on their positions or assigned tasks.

Annual salary grade increases shall be applied according to general regulations applicable to workers and civil servants working domestically.

2. Salary Allowances:

Workers and civil servants working in Laos and Cambodia shall enjoy the following salary allowances as prescribed in Decree No. 235-HĐBT and Decision No. 278-CT dated October 31, 1986, of the Chairman of the Council of Ministers:

a) Salary Allowances According to Decree No. 235-HĐBT:

- Living cost differential allowance based on region. The highest level of this allowance, as prescribed domestically, shall apply. Currently, the highest living cost differential allowance is 38% of the grade salary or position salary as specified in Circular No. 15-LĐ/TT dated October 11, 1986, of the Ministry of Labor.

When the State adjusts the living cost differential allowance based on region, it shall be applied according to the adjusted rate.

- Regional allowance. The highest level of 25% of the grade salary or position salary as prescribed in Circular No. 10-LĐ/TT dated September 18, 1985, of the Ministry of Labor shall apply.

- Difficult and dangerous transportation allowance. Workers directly operating transport vehicles on routes in Laos and Cambodia shall receive a difficult and dangerous transportation allowance of 15% of the grade salary as specified in Circular No. 18-LĐ/TT dated November 14, 1985, of the Ministry of Labor.

- Mobility allowance. Workers and civil servants eligible for mobility allowances as prescribed in Circular No. 15-LĐ/TT dated November 7, 1985, of the Ministry of Labor, during their work in Laos and Cambodia, shall be subject to the following mobility allowance rates based on grade salary or position salary:

A rate of 25% applies to workers and civil servants engaged in exploration, surveying, and measurement.

A rate of 20% applies to workers and civil servants building transportation routes.

A rate of 15% applies to other eligible recipients of mobility allowances.

- Attraction allowance:

During their work in Laos and Cambodia, workers and civil servants shall receive an attraction allowance of 15% of the grade salary or position salary.

- Combat allowance:

Workers and civil servants working in unstable security areas in Laos and Cambodia shall receive a combat allowance of 10% of the grade salary or position salary. The competent ministry, after consultation with the Economic and Cultural Cooperation Committee with Laos and Cambodia, shall specify the regions eligible for this allowance.

Calculation methods shall be implemented according to Circular No. 14-LĐ/TT dated November 7, 1985, of the Ministry of Labor.

- Productivity bonus ratio and lump-sum wage ratio at 12% of the grade salary applicable to workers receiving productivity wages and lump-sum wages.

- Bonus from the wage fund at 12% of the grade wage fund or position wage fund.

- Other salary allowances, including special seniority allowance, seniority allowance exceeding the framework, preferential allowance, hazardous allowance, responsibility allowance, overtime allowance, night shift allowance, etc., shall be applied according to the guiding circulars of the Ministry of Labor.

b) Allowances According to Decision No. 278-CT dated October 31, 1986, of the Chairman of the Council of Ministers.

In addition to grade salary or position salary and the above-mentioned allowances, workers and civil servants working in Laos and Cambodia shall also enjoy the following allowances:

Special allowance for working in Laos and Cambodia:

During their work in Laos and Cambodia, they shall receive a special allowance of 50% of the grade salary or position salary.

This allowance shall be included in the unit price of lump-sum wages and product wages.

Foreign language allowance:

Workers and civil servants meeting both of the following conditions shall be entitled to a foreign language allowance:

- Proficient in Lao or Cambodian through self-study.

- Required by job duties to frequently work directly with the host country without the need for interpreters.

Allowance amount:

A rate of 5% applies to workers and civil servants proficient in the host country's language to the extent that they can directly communicate while working with the host country.

A rate of 10% applies to workers and civil servants proficient in the host country's language to a higher degree, such as speaking, writing, and translating fluently between the host country's language and Vietnamese.

Based on the job requirements and the level of foreign language usage needed for the workers and officials mentioned above, the head of the unit (director of the enterprise or equivalent or higher rank) shall issue a decision granting the subject the foreign language allowance as prescribed.

- Foreign language seniority allowance system.

Workers and officials working in Laos and Cambodia who have completed three years of service (36 months) shall be entitled to a seniority allowance from the 37th month onwards at a rate of 3% of their grade salary or position salary without a maximum limit.

The period of service for calculating the seniority allowance includes:

Time previously worked in the Host Country (including time worked in Laos before transferring to work in Cambodia and vice versa if applicable).

Current time working in the Host Country.

This seniority allowance system does not replace the special seniority allowance stipulated in Circular No. 19-LĐ/TT dated November 14, 1985, and the seniority allowance exceeding the ceiling stipulated in Circular No. 11-LĐ/TT dated October 2, 1986, issued by the Ministry of Labor.

III. Midday meal system.

Workers and officials falling under the provisions of Article 1, Section I above shall implement the midday meal system prescribed in Circular No. 1279-LĐ/CN3 dated October 9, 1986, according to the following two levels:

a) Level 15 dong per serving applies to production workers based on quantity:

- 100 grams of rice,

- 20 grams of meat.

The cost of this system shall be included in the project budget and accounted for in the product cost.

IV. Regulations for the children of workers and officials working in

Laos and Cambodia.

For children still being supported by workers and officials who are currently purchasing foodstuffs and fuel according to the quota, they shall continue to purchase foodstuffs and fuel (at the current supply point) for one child at the stable price set for workers and officials as stipulated in Decision No. 117-HĐBT and No. 122-HĐBT dated October 4, 1986, of the Council of Ministers. In places where the sale of quotas at stable prices is implemented more widely for those needing support from workers and officials, this shall also apply to those needing support from workers and officials working in Laos and Cambodia until a new decision is made.

V. Other preferential systems.

1. One-time provision system:

Each worker and official going to work in Laos and Cambodia for a specified period of three years or more shall be provided with a one-time payment before departure (not deducted from salary) sufficient to purchase the following essential living items:

1 personal cotton quilt (cover and stuffing),

1 cotton jacket (or woolen jacket),

1 personal canvas mosquito net,

1 artificial leather travel bag,

1 suit made of domestic serge fabric or equivalent material.

These items shall be purchased at the retail trade price as guided by the Ministry of Internal Trade.

For workers and officials going to work for less than three years, a one-time payment (not deducted from salary) shall also be provided. The amount of the payment shall be calculated based on the number of months working in Laos and Cambodia, obtained by dividing the total amount allocated for purchasing the above items by 36 months and multiplying by the number of months working in Laos and Cambodia.

Example: A construction worker building roads in Laos for 22 months. Assuming the total amount allocated for purchasing the above items is 8,000 dong (for 36 months), the initial provision payment for that worker would be:

8,000 x 22 months

---------------------- = 4,289 dong.

36 months

In cases where workers and officials are scheduled to work in the Host Country for three years but return home earlier than planned due to reasons other than the specified period by six months or more, they must repay the state the amount allocated for the remaining months.

For workers and officials who continue to work in the Host Country beyond the three-year period, there will be no second issuance.

This one-time provision system does not replace the protective equipment provision system.

a) Currency exchange system:

Currently, the source of Cambodian Riel and Laotian Kip has not been resolved. When this issue is resolved, further guidance will be provided.

3. Annual leave system:

Workers and officials working in Laos and Cambodia for one year (12 months) shall be entitled to 30 days of annual leave excluding travel days.

Depending on the duration of work, if it is only up to 18 months, leave shall be arranged in one go.

If the duration of work exceeds 18 months, after one year of continuous work, annual leave shall be arranged annually. However, it is encouraged to combine two years of leave into one (60 days) if conditions permit.

Travel days shall be compensated according to the travel allowance and accommodation subsidy system for domestic workers and officials on business trips. Waiting days during the year shall not be entitled to accommodation subsidies.

Train and bus fares shall be reimbursed for the distance from the workplace in the Host Country to the annual leave location within the country according to Circular No. 1-TC/HCVX dated January 8, 1986, of the Ministry of Finance. In cases where there are no relatives, reimbursement shall be made according to the location registered by the workers and officials for annual leave.

Organizations and units need to create favorable conditions for means of transportation for workers and officials when taking annual leave to ensure it does not affect their work in the Host Country.

4. Personal leave system:

Workers and officials working in Laos and Cambodia who encounter the death of their father, mother, spouse, or child shall have their personal leave system reviewed and resolved by the organization, enterprise, or unit according to the current regulations in the country. However, it should be combined with the annual leave system (for workers and officials who still have unused annual leave) to reduce the number of trips.

Workers and officials working in Laos and Cambodia returning to the country for annual leave or personal leave shall be given priority in purchasing tickets and arranging trains and buses like soldiers heading to the border.

VI. Implementation Provisions.

All benefits for workers and officials according to Decision No. 278-CT shall be included in the construction project budget and product cost to sign contracts with the Host Country. The State will not subsidize losses or prices and will not allocate funds from the budget.

For workers and officials who have completed their tasks or returned home temporarily for three months or more, from the day they leave the Host Country, they shall not be subject to the above regulations but shall enjoy the same benefits as workers and officials in the country.

This Circular takes effect from October 1, 1986. All previous provisions contrary to this Circular are abolished.

During implementation, if there are any difficulties, the relevant ministries, sectors, and localities are requested to report them to the Ministry of Labor, Invalids and Social Affairs-Ministry of Finance for study and resolution.