JOINT CIRCULAR No. 21-TT-LB Circular explains and guides the implementation of the Council of Ministers' resolution on increasing wages for workers, officials, and civil servants.

JOINT CIRCULAR

Explanation and guidance on implementing the resolution of the Council of Ministers regarding wage increases for workers, cadres, and civil servants.

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MINISTER OF INTERIOR - MINISTER OF LABOR - MINISTER OF FINANCE

I. PURPOSE AND SIGNIFICANCE

In the current economic recovery situation, there are still many difficulties, recently prices have increased in Hanoi and some other localities, affecting the lives of workers, soldiers, cadres, and civil servants as well as the general public.

To alleviate these difficulties and improve the living standards of workers, soldiers, cadres, and civil servants, the Council of Ministers has resolved:

Regarding workers, cadres, and civil servants:

"Starting from October 1956, increase the base salary of 26,000 dong for cadres, workers, and civil servants who participated in the resistance by 5%.

Specifically, in Hanoi and Hong Gai mine area, increase by 12%, and in Hai Phong, increase by 8%.

At the same time, the Government has decided to allocate a portion of rice to assist families without allowances that are currently facing difficulties; raise labor wages at construction sites according to three levels: 1,150 dong, 1,250 dong, and 1,350 dong per day; distribute winter coats, quilts, and mosquito nets to southern cadres, workers, and civil servants who are lacking them; allow employees to claim back their site wages from July 1, 1955; study allowances for technical, scientific, cultural, and artistic cadres; expedite the completion of cadre, worker, and civil servant placement into established pay scales.

The above measures are urgent temporary regulations within the current wage system aimed at alleviating difficulties and improving the living standards of workers and civil servants.

To ensure effective implementation of the aforementioned measures, the Government has assigned relevant ministries the responsibility to maintain prices of essential daily goods, strictly manage budgets, combat corruption and waste, and promote thrift.

In the current situation where the country must overcome numerous difficulties to restore the economy and heal wounds inflicted by 15 years of war and consecutive natural disasters, these measures demonstrate the significant efforts of the Party and Government towards cadres, workers, and civil servants.

All sectors and levels must clearly explain these measures to workers and civil servants to enhance their trust, recognize the Party and Government's concern, and boost production and job satisfaction.

II. OBJECTS OF IMPLEMENTATION AND METHODS OF IMPLEMENTATION

The general principle is that the 5%, 8%, or 12% wage increase applies only to the basic wage based on the pay scale grades, excluding personal allowances such as regional allowances. The allowance of 1,000 dong set by Circular Joint Ministry No. 22-TT-LB dated August 27, 1956, is abolished from October 1, 1956.

Regional allowances of 6%, 13%, and 20% continue to be implemented. The 5.8% allowance for Hanoi is now rounded up to 6%. Therefore, when adding the new wage increase in each locality with the regional allowance, the basic wage will be raised as follows:

Region 1: 5% + 20% = 25%.

Region 2: 5% + 13% = 18%.

Region 3: 6% + 5% = 11%.

Hanoi: 6% + 12% = 18%.

Hong Gai Mine Area: 12%.

Hai Phong: 8%.

1. For workers and staff receiving wages under the old resistance wage system:

a) For those already placed into the established pay scales, calculate based on the wage level of the grade. Example: A staff member at grade 13 (17-grade scale) working in region 2 (13%) would have the wage and regional allowance calculated as follows:

33,800 dong + (33,800 dong X (5 + 13%) = 39,884 dong

100

b) For those temporarily placed or not yet placed into the current pay scales but currently receiving wages under the old 18 and 25-grade scales with a provisional 5.4% allowance in localities or 50% in Hanoi, temporarily calculate 5%, 8%, or 12% based on the actual current wage (including provisional 40% or 50%).

After officially placing grades, if the new wage plus 5%, 8%, or 12% is higher than the current actual wage, the difference due to the wage increase since October 1, 1956, will be paid retroactively. Example: A staff member in Hanoi at grade 11 (old 25-grade scale) currently receives 42c + 3c (special allowance) + 22c5 (50%) = 67c5. Converted to money based on the December 1955 rice price, it is 30,680 dong. Now adding the 12% wage increase, it becomes:

30,680 dong + 30,680 dong X 12% = 34,361 dong

100

c) For workers and staff currently studying long-term at schools, they also receive a 5%, 8%, or 12% increase calculated as described in points a and b above.

d) For main force cadres involved in land reform now transferred to work in enterprises or factories, if not yet placed into grades, calculate 5%, 8%, or 12% based on the provisional wage assigned upon initial employment at the enterprise or agency, not based on the fee received during the land reform period. When officially placed, recalculate as described in point b above.

e) For cadres and demobilized military personnel transferred to other sectors, they also receive an increase, but a separate circular will be issued.

g) Workers, cadres, and staff working at embassies abroad do not increase according to the above ratio.

2. For workers and staff newly recruited after peace and in restored enterprises receiving wages under the restored enterprise system, they also receive an increase (to be supplemented later).

For workers and staff from the resistance movement appointed to work in the aforementioned restored enterprises, calculate as described in section 1.

3. For workers and staff under the original wage system:

For workers and staff in enterprises, factories, and agencies already placed into pay scales, if the current wage is lower than the resistance worker's wage at the same grade after a 5%, 8%, or 12% increase plus regional allowance, then adjust to the resistance worker's wage.

Example: A worker under the original wage system in Hanoi with an old wage of 42,000 dong now placed at grade 3 (industry 3) would have the wage and allowance calculated as follows:

39,780 dong + 39,780 dong X (12 + 6) = 46,940 dong

100

This worker will receive the new wage of 46,940 dong.

For enterprises taken over which were previously allowed to receive wages under the restored wage system, the wage increase will be calculated as described in section 2.

As for workers under the fixed salary system at the Hong Gai coal mine who have not yet been rearranged to receive salaries of 60,000 dong or less, they will temporarily be increased by 5% based on their current actual salaries.

Workers and staff who are former resistance fighters working in enterprises taken over, including Hong Gai, will receive 5%, 8%, or 12% according to the calculation method specified in point 1. Workers and officials under the fixed salary system with low salaries will be issued a separate circular.

4. For daily wage workers, temporary workers, auxiliary workers, and those receiving piece-rate wages or wages under contracts:

a) Workers and staff receiving daily wages: take the monthly salary (excluding allowances) and increase it by 5%, 8%, or 12%, then divide by 25 days to calculate the daily wage or multiply the previously determined daily wage (excluding regional and hardship allowances) by 5%, 8%, or 12%.

b) Auxiliary workers and temporary workers receiving daily wages or monthly wages will enjoy 5%, 8%, or 12% calculated based on their regular daily or monthly wages.

c) For workers receiving piece-rate wages or wages under contracts, the 5%, 8%, or 12% will not be calculated based on the current piece-rate wages or contract wages but will be based on the general wage increase to reassess the piece-rate wages or contract wages.

d) For workers receiving piece-rate wages or a temporary advance payment (such as overseas Vietnamese, newly recruited staff after the takeover of the city), the 5%, 8%, or 12% will not be calculated based on their current wages; specifically, those whose wages are still considered low will be raised later.

e) Workers who have already received a wage increase since October 1, 1956 (Circular No. 16-TT-LB dated October 27, 1956 of the Ministry of Labor and Finance) shall not implement the wage increases of 5%, 8%, or 12%.

f) Students at schools receiving scholarships shall not increase according to the above ratios.

5. Calculation of 5%, 8%, and 12% in cases of business trips or transfers from areas with lower wage increases to areas with higher wage increases or vice versa:

a) From areas with lower wage increases to areas with higher wage increases:

- Time spent on business trips under 10 days will not be calculated based on the higher wage increase area.

- Time spent on business trips from 10 to under 20 days will be calculated as half a month to enjoy the higher wage increase area.

- Time spent on business trips from 20 to 30 days will be calculated as one month to enjoy the higher wage increase area. Any additional days beyond one month will also be enjoyed.

b) From areas with higher wage increases to areas with lower wage increases:

- If the business trip is temporary and lasts less than three months, the higher wage increase will still be enjoyed.

- If the business trip lasts three months or more, the lower wage increase will be enjoyed starting from the fourth month.

c) In the case of permanent transfer:

- In this case, the higher wage increase from the previous location will be immediately discontinued from the day the worker or staff member leaves that location and will start enjoying the higher wage increase from the new location.

This decree takes effect from October 1, 1956.

It is requested that all Ministries, all levels of Administrative Committees, and all sectors actively lead and urge agencies, factories, and enterprises to implement quickly and effectively.

While guiding implementation, attention should be paid to:

1) Explain widely the purpose and significance of this wage increase, making each worker, cadre, and staff member understand the current common difficulties, recognizing that in the current production situation, unemployment has not been fully resolved, and people's lives are still lacking, it is impossible to increase significantly in one go but can only improve gradually. In improving the living conditions of workers, cadres, and staff members, one should not only focus on wage increases but also see other measures such as providing rice subsidies for families facing difficulties and those not following child allowance systems, distributing quilts, mosquito nets, and winter clothes for southern comrades, and reclaiming wages for workers and employees at construction sites. In addition to temporary measures, the Party and Government have a long-term and comprehensive plan to solve these issues: The Council of Ministers has assigned relevant ministries to study a more reasonable wage system that encourages production and gradually improves the living conditions of workers and staff members according to the planned economic development policy. Only then will the efforts and care of the Party and Government towards the lives of workers, cadres, and civil servants be recognized, thereby enhancing the sense of responsibility and striving to produce and work.

2) To improve the living conditions of workers, cadres, and civil servants, increasing wages alone is insufficient. Heads of agencies and factory management must pay close attention to organizing the lives of workers, cadres, and civil servants, leading expenditures with planning, firmly practicing thrift and combating corruption and waste. All measures that can be implemented under current conditions must be carried out to organize material and spiritual life in factories, construction sites, farms, and agencies well.