Decree No. 175/1999/NĐ-CP on Adjusting the Minimum Wage Level, Allowances, and Living Expenses for Recipients of Salaries, Allowances, and Living Expenses from State Budget Funds

DECREE

Regarding the adjustment of the minimum wage level, allowance levels, and living expenses for subjects receiving wages, allowances, and living expenses from state budget funds

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

At the proposal of the Minister, Head of the Organization and Cadre Department of the Government,

DECREE:

Article 1. From January 1, 2000, adjust the minimum wage level, allowance levels, and living expenses for subjects receiving wages, allowances, and living expenses from state budget funds as follows:

1. Increase the minimum wage from VND 144,000 per month as stipulated in Decree No. 06/CP dated January 21, 1997 of the Government to VND 180,000 per month applicable to subjects receiving wages and allowances from state budget funds;

2. Increase monthly living expenses by 25% for village, ward, and town cadres currently working or retired compared to the living expense level prescribed in Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government;

3. Increase pensions and allowances by 25% compared to the current level stipulated in Decree No. 06/CP dated January 21, 1997 of the Government for retirees and subjects receiving monthly allowances under social insurance regulations;

4. Increase the allowance fund by 15% compared to the allowance fund calculated according to the provisions of Decree No. 28/CP dated April 29, 1995 and Decree No. 06/CP dated January 21, 1997 of the Government for subjects receiving monthly allowances as prescribed in the Ordinance on Preferential Treatment for Revolutionary Activists, Martyrs, and Families of Martyrs, War Invalids, Veterans, and Those Who Contributed to the Revolution, adopted by the Standing Committee of the National Assembly on August 29, 1994 (excluding those who have already received one-time allowances);

Article 2.

1. The Personnel - Cadre Organization Department of the Government shall take the lead and coordinate with the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs, and the Central Party Organization Department to be responsible for:

a) Providing guidance on adjusting the minimum wage level and living expenses as stipulated in Clause 1 and Clause 2, Article 1 of this Decree;

b) Guiding ministries, sectors, and localities to establish and review the increased wage fund and living expense fund to ensure that they do not exceed the approved 2000 state budget plan and avoid causing sudden price fluctuations;

2. The Ministry of Labor, Invalids and Social Affairs shall take the lead and coordinate with the Personnel - Cadre Organization Department of the Government, the Ministry of Finance, and the Central Party Organization Department to be responsible for:

a) Providing guidance on increasing pension levels and allowances for subjects receiving monthly allowances under social insurance regulations as stipulated in Clause 3, Article 1 of this Decree;

b) Based on the total increased allowance fund stipulated in Clause 4, Article 1 of this Decree, provide specific guidance on the adjusted increased allowance levels for each subject according to the principle that the highest adjusted increase shall not exceed 25% of the current level;

c) Guiding localities to establish and review the increased pension fund and allowance fund to ensure that they do not exceed the approved 2000 state budget plan;

3. The Ministry of Finance shall allocate the increased wage fund, allowance, and subsidy funds stipulated in this Decree in the state budget at the appropriate levels according to the current division of responsibilities. Financial agencies at all levels shall only disburse salary and allowance funds after the results of the review by the relevant ministries and sectors as stipulated in Clause 1 and Clause 2 of this Article have been completed;

4. The Ministry of Finance shall cooperate with the Personnel - Cadre Organization Department of the Government to guide units with revenue sources to establish financial mechanisms, clearly defining revenue sources and their usage; developing policies to encourage units with large revenues and allocating part of the revenue to prioritize self-funding of the wage fund.

Article 3. The Ministry of Defense and the Ministry of Public Security, after reaching agreement with the Personnel - Cadre Organization Department of the Government, the Ministry of Finance, and the Ministry of Labor, Invalids and Social Affairs, shall guide the implementation of the provisions of this Decree for armed forces under their management.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, and chairpersons of provincial and centrally-administered city people's committees shall be responsible for establishing and consolidating the increased wage fund, allowance fund, subsidy fund, and living expense fund of their respective ministries, sectors, and localities and submitting four copies to the agency designated in Clause 1 and Clause 2 of Article 2 of this Decree for review by the relevant ministries and sectors before implementation. Ministries, sectors, and localities shall only pay salaries, allowances, and living expenses according to the stipulated levels after approval by the relevant ministries and sectors and upon claiming according to the provisions of this Decree from January 1, 2000.

Article 5. This Decree takes effect from January 1, 2000.

Deductions and benefits based on wages or living expenses for subjects receiving wages or living expenses from state budget funds shall be recalculated correspondingly with the adjustment of the minimum wage level and living expense level as stipulated in this Decree.

Article 6. The Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, and Chairmen of provincial and centrally-administered city People's Committees are responsible for implementing this Decree.