Circular No. 12/2006/TT-BLDTBXH guiding the implementation of salary adjustment and wage allowances in enterprises according to Government Decree No. 94/2006/NĐ-CP dated September 7, 2006.

 CIRCULAR

Guidelines for Adjusting Wages and Allowances in Enterprises

Pursuant to Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government

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||| Based on Article 1, Clause 3 of Article 2 and Article 4 of Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government adjusting the general minimum wage, the Ministry of Labor, Invalids and Social Affairs hereby provides guidance as follows:

I. SCOPE AND OBJECTS OF ADJUSTING WAGES AND ALLOWANCES

Article 1. Scope of Application:

a) State-owned enterprises established under the Law on State-Owned Enterprises, including:

- State-owned corporations:

+ State-owned corporations established under the Law on State-Owned Enterprises 1995 and State-owned corporations established by the decision of the State to invest and establish under the Law on State-Owned Enterprises 2003;

+ State-owned investment and business corporations;

- Independent state-owned companies;

- Corporations and independent accounting subsidiaries of economic groups; independent accounting subsidiaries of State-owned corporations established by the decision of the State to invest and establish;

- Parent corporations of economic groups, corporations operating under the parent company - subsidiary model pursuant to Decree No. 153/2004/NĐ-CP dated August 9, 2004 of the Government.

b) Enterprises operating under the Law on Enterprises (excluding foreign-invested enterprises in Vietnam), including:

- Limited liability companies;

- Joint stock companies;

- Partnership companies;

- Private enterprises.

c) The Vietnam Deposit Insurance Corporation, the Vietnam Development Bank, and project management boards applying wage systems similar to those of state-owned enterprises.

d) Cooperatives, production cooperatives, farms, households, individuals, and other organizations employing labor under employment contracts (excluding foreign agencies, international organizations, and foreigners in Vietnam).

The enterprises, organizations, and individuals specified in points a, b, c, and d above are collectively referred to as enterprises.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Members of the Board of Directors, members of the Management Council, General Directors, Directors, Deputy General Directors, Deputy Directors, Chief Accountants in enterprises specified in point a, point c, paragraph 1 above (excluding positions remunerated according to contracts);

b) Personnel engaged in management work and receiving wages in enterprises specified in point b, point d, paragraph 1 above;

c) Workers employed under employment contracts as stipulated in Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code regarding employment contracts.

II. ADJUSTING WAGES AND ALLOWANCES

1. For enterprises specified in point a, point c, paragraph 1, section I of this Circular:

a) Base on the wage and allowance coefficients prescribed in Decree No. 205/2004/NĐ-CP, Decree No. 204/2004/NĐ-CP dated December 14, 2004, and the general minimum wage of 450,000 VND/month stipulated in Article 1 of Decree No. 94/2006/NĐ-CP dated September 7, 2006 to adjust the wage and allowance levels serving as the basis for calculating unit labor costs; contributions and benefits under social insurance; health insurance; wages during suspension of work; holidays; annual leave, and other benefits as prescribed by labor laws. The adjustment of wage and allowance levels shall be calculated as follows:

Multiply the grade coefficient based on job title, position; professional and vocational coefficient; post coefficient assigned, allowance, and differential retention coefficient (if applicable) with the general minimum wage of 450,000 VND/month.

Example:

Mr. Nguyen Van A is classified at the level of Specialist Grade 5 with a coefficient of 3.58 and receives a responsibility allowance of 0.2 and an attraction allowance of 20% as stipulated in Decree No. 205/2004/NĐ-CP. The adjustment of Mr. A's wage, responsibility allowance, and attraction allowance is calculated as follows:

- Wage is:

3.58 x 450,000 VND/month = 1,611,000 VND/month

- Responsibility allowance is:

0.2 x 450,000 VND/month = 90,000 VND/month

- Attraction allowance is:

20% x (3.58 x 450,000 VND/month) = 322,200 VND/month.

b) For state-owned enterprises currently applying an additional adjustment factor not exceeding twice the general minimum wage to serve as the basis for calculating unit labor costs as prescribed in Article 4 of Decree No. 206/2004/NĐ-CP dated December 14, 2004 and point b, paragraph 1, section III of Circular No. 07/2005/TT-BLĐTBXH dated January 5, 2005, from October 1, 2006 onwards, they shall apply an additional adjustment factor not exceeding 1.34 times the general minimum wage of 450,000 VND/month and must ensure the conditions stipulated in Article 4 of Decree No. 206/2004/NĐ-CP and point b, paragraph 1, section III of Circular No. 07/2005/TT-BLĐTBXH mentioned above.

c) The midday meal allowance for workers, staff, and officials working in state-owned enterprises as stipulated in Circular No. 15/1999/TT-BLĐTBXH dated June 22, 1999 shall not exceed the general minimum wage of 450,000 VND/month.

2. For enterprises specified in point b, point d, paragraph 1, section I of this Circular:

a) If applying the wage scale, salary table, and allowance system prescribed by the State for state-owned enterprises, then adjust wages and allowances as prescribed in point a, paragraph 1, section II above;

b) If establishing their own wage scales, salary tables, and allowance systems as prescribed in Decree No. 114/2002/NĐ-CP dated December 31, 2002 and Circular No. 13/2003/TT-BLĐTBXH dated May 30, 2003 guiding Decree No. 114/2002/NĐ-CP mentioned above, then base on the general minimum wage of 450,000 VND/month to adjust the wages recorded in employment contracts; unit wage rates; contributions and benefits under social insurance; health insurance; wages during suspension of work; holidays; annual leave, and other benefits as prescribed by labor laws.

III. IMPLEMENTATION

1. Ministries, ministerial-level agencies, government agencies, provincial People's Committees, and the Chairmen of the Boards of Directors of economic groups and state-owned corporations specified in the annex attached to Decree No. 86/2006/NĐ-CP dated August 21, 2006 are responsible for directing, urging, and inspecting enterprises to implement in accordance with the provisions of this Circular.

2. For surplus labor as defined in Decree No. 41/2002/NĐ-CP dated April 11, 2002, Decree No. 155/2004/NĐ-CP dated August 10, 2004 amending and supplementing Decree No. 41/2002/NĐ-CP, and Resolution No. 06/2006/NQ-CP dated May 4, 2006 of the Government, unemployment benefits for time worked in the state sector from October 1, 2006 onwards shall be calculated based on the general minimum wage of 450,000 VND/month. When implementing these benefit payments, additional columns should be added to calculate the actual working time in the state sector and include unemployment benefits in Table 9 issued together with Circular No. 18/2005/TT-BLDTBXH dated May 11, 2005 guiding Decree No. 41/2002/NĐ-CP and Decree No. 155/2004/NĐ-CP mentioned above.

Additional benefits for those retiring early as stipulated in Point b, Clause 1, Article 3 of Decree No. 41/2002/NĐ-CP shall be implemented according to Point a, Clause 1, Section II of Circular No. 19/2004/TT-BLDTBXH dated November 22, 2004, from October 1, 2006 onwards, calculated based on the minimum wage of 450,000 VND/month.

This Circular takes effect fifteen days after its publication in the Official Gazette. Circular No. 25/TT-BLDTBXH dated October 4, 2005 guiding the implementation of salary adjustments and allowances under Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government is hereby abolished.

The adjustments to salaries, allowances, and other provisions specified in this Circular shall be applied from October 1, 2006.

In the course of implementation, if there are any difficulties, the relevant ministries, ministerial-level agencies, agencies under the Government, provincial People's Committees, centrally governed cities, and enterprises are requested to report to the Ministry of Labor - Invalids and Social Affairs for consideration and resolution./.