Decree No. 205/2004/ND-CP on the wage scale system, salary table, and wage allowances in state-owned companies

DECREE

Regulations on the wage scale, salary table, and wage allowances in state-owned enterprises

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Labor Code on June 23, 1994; Law Amending and Supplementing Certain Articles of the Labor Code on April 2, 2002;

Pursuant to the State Enterprise Law dated November 26, 2003;

Pursuant to Resolution No. 19/2003/QH11 dated November 16, 2003 of the National Assembly's Eleventh Session regarding the tasks for 2004;

At the proposal of the Minister of Labor, Invalids and Social Affairs,

DECREE:

Article 1. The scope of application of the wage scale, salary table, and wage allowance system prescribed in this Decree includes:

1. State-owned enterprises:

- State-owned corporation;

- Independent state-owned enterprises.

2. Independent accounting subsidiaries of State-owned corporations established by the State's decision to invest and establish.

The above-mentioned state-owned corporations shall be referred to as enterprises.

Article 2. Applicability:

1. Workers and employees directly engaged in production and business activities;

2. Members of the Board of Directors and members of the Supervisory Board;

3. General Managers, Directors, Deputy General Managers, Deputy Directors, Chief Accountants (excluding those working under contracts);

4. Professional and technical staff; administrative and service personnel.

Article 3. Attached to this Decree are the wage scales, salary tables, and tables of allowances for positions of Department Heads and Deputy Department Heads, including:

1. Wage scales for workers and employees directly engaged in production and business activities;

2. Salary tables for workers and employees directly engaged in production and business activities;

3. Salary table for full-time members of the Board of Directors;

4. Salary table for General Managers, Directors, Deputy General Managers, Deputy Directors, and Chief Accountants;

5. Salary table for senior experts and artisans;

6. Salary table for professional and technical staff and table of allowances for positions of Department Heads and Deputy Department Heads;

7. Salary table for administrative and service personnel.

Article 4. Wage allowances include:

1. Regional allowance: applicable to persons working in remote, isolated areas with harsh climates.

The allowance consists of seven levels: 0.1; 0.2; 0.3; 0.4; 0.5; 0.7 and 1.0 times the minimum wage level.

2. Responsibility allowance: applicable to non-full-time members of the Board of Directors, members of the Supervisory Board (excluding the Head of the Supervisory Board) and those performing certain jobs requiring high responsibility or managing work not included in leadership positions.

The allowance consists of four levels: 0.1; 0.2; 0.3 and 0.5 times the minimum wage level.

3. Hazardous and dangerous job allowance: applicable to persons engaged in occupations or jobs with hazardous and dangerous conditions that have not been included in the wage level.

The allowance consists of four levels: 0.1; 0.2; 0.3 and 0.4 times the minimum wage level.

4. Travel allowance: applicable to persons engaged in occupations or jobs that frequently change work locations and residences.

The allowance consists of three levels: 0.2; 0.4 and 0.6 times the minimum wage level.

5. Attraction allowance: applicable to persons working in new economic zones, economic bases, and distant islands with particularly difficult living conditions.

The allowance consists of four levels: 20%; 30%; 50% and 70% of the wage level corresponding to rank, position or professional wage.

The period of enjoyment is from 3 to 5 years.

Article 5. The wage scales, salary tables, and wage allowances prescribed in Article 3 and Article 4 of this Decree serve as the basis for:

1. Agreeing on wages in labor contracts;

2. Establishing unit prices for wages; implementing the wage increase system according to agreements in labor contracts and collective labor agreements;

3. Paying and enjoying social insurance and health insurance benefits as provided by law;

4. Paying wages during suspension of work and other benefits as provided by labor law;

5. Resolving other rights and interests agreed upon by employers and employees and as provided by labor law.

Article 6. The transfer and adjustment of wages must be ensured according to the principle of matching the job with the wage level, matching the position with the wage level or position allowance based on technical grade standards for workers; professional and technical standards for staff and employees; company ranking standards.

Article 7. The Ministry of Labor, Invalids and Social Affairs is responsible for:

1. Guide the transition from old to new wages for General Managers, Directors, Deputy General Managers, Deputy Directors, and Chief Accountants and workers, staff, and employees according to the wage scales and salary tables stipulated in Clauses 1, 2, 4, 5, 6, and Clause 7 of Article 3; guide the implementation of wage allowance systems prescribed in Article 4 of this Decree; guide the method of establishing technical grade standards for workers and professional and technical standards for staff and employees in companies;

2. Take the lead and coordinate with the Ministry of Home Affairs to guide the transition from old to new wages for members of the Board of Directors (excluding General Managers and Directors) according to the salary table prescribed in Clause 3, Article 3 of this Decree;

3. Take the lead and coordinate with the Ministry of Finance and relevant ministries and sectors:

a) Submit to the Prime Minister for approval of special wage systems for certain industries and professions;

b) Issue company ranking standards. For companies classified as special category, submit to the Prime Minister for consideration and decision;

c) Guide companies to determine their rankings and register with the owner's representative; register with the Ministry of Labor, Invalids, and Social Affairs for companies ranked Class I and above; submit to the Prime Minister for companies classified as special category.

Article 8. This Decree takes effect 15 days after its publication in the Official Gazette and replaces Government Decree No. 26/CP dated May 23, 1993 on temporary regulations on new wage systems in enterprises, Government Decree No. 110/1997/NĐ-CP dated November 18, 1997 on supplementing management position wage coefficients and leadership position allowances issued together with Government Decree No. 26/CP dated May 23, 1993, Decision No. 83/1998/QĐ-TTg dated April 15, 1998 of the Prime Minister on wage systems and allowances for members of the Board of Directors and Supervisory Board of State-Owned Enterprises and large independent state-owned enterprises.

The provisions of this Decree shall be implemented from October 1, 2004.

Article 9. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree./.