Circular No. 22/2011/TT-BLDTBXH guiding the wage system for workers and officials constructing hydropower projects invested by Vietnam in the Lao People's Democratic Republic.

CIRCULAR

Guidelines on wage regulations for workers and officials constructing hydropower projects

invested by Vietnam in the Lao People's Democratic Republic

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Pursuant to Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government stipulating the wage scale and wage system and the allowance regime in state-owned enterprises;

Pursuant to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on wage regulations for civil servants and armed forces personnel;

Pursuant to Decree No. 186/2007/NĐ-CP dated February 25, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor - Invalids and Social Affairs;

Implementing the Prime Minister's opinion in Document No. 1619/VPCP-KTTH dated March 18, 2011 of the Government Office, after receiving opinions from relevant ministries and sectors, the Ministry of Labor - Invalids and Social Affairs issues guidelines on wage and allowance regulations for workers and officials directly involved in constructing hydropower projects invested by Vietnam in Laos using state capital of 30% or more.

Article 1. Scope of Regulation

This Circular provides guidance on wages, allowances, production instability coefficients, and midday meal systems for workers and officials directly participating in the construction of hydropower projects invested by Vietnam in the Lao People's Democratic Republic using state capital of 30% or more.

Article 2. Applicability

1. Workers and officials directly involved in constructing the project.

2. Project management workers and officials directly working at the project site.

3. Survey, consulting, and design workers and officials directly working at the project site.

4. Investment enterprises, construction contractors (hereinafter referred to collectively as the investor and construction contractor).

Article 3. Wage and Allowance Regulations

1. The minimum wage level shall be applied according to the general minimum wage level prescribed by the Government of Vietnam corresponding to each period until new regulations are issued.

2. The wage level for job grades shall be calculated based on the salary coefficient specified in the wage scale and pay grade chart issued together with Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government stipulating the wage scale system, pay grade chart, and allowance system in state-owned companies corresponding to the job grade of specific jobs according to the construction project quota set by the Ministry of Construction.

3. Allowance System

a) Regional Allowance: at a rate of 0.7 times the general minimum wage level prescribed by the Government of Vietnam corresponding to each period, the implementation shall be organized in accordance with Circular Joint No. 11/2005/TTLT-BNV-BLDTBXH-BTC dated January 5, 2005 of the Ministry of Home Affairs, Ministry of Labor - Invalids and Social Affairs, Ministry of Finance, and the National Ethnic Committee guiding the implementation of regional allowances.

b) Mobility Allowance: at a rate of 0.6 times the general minimum wage level prescribed by the Government of Vietnam corresponding to each period, the implementation shall be organized in accordance with Circular No. 05/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of mobility allowances.

c) Hazardous and Dangerous Work Allowance: at a rate of 0.4 times the general minimum wage level prescribed by the Government of Vietnam corresponding to each period, the implementation shall be organized in accordance with Circular No. 04/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of hazardous and dangerous work allowances.

d) Attraction Allowance: at a rate of 70% of the job grade salary, position salary, or specialized and vocational salary, the implementation shall be organized in accordance with Circular Joint No. 10/2005/TTLT-BNV-BLDTBXH-BTC dated January 5, 2005 of the Ministry of Home Affairs, Ministry of Labor - Invalids and Social Affairs, and Ministry of Finance guiding the implementation of attraction allowances.

e) Special Allowance: at a rate of 30% compared to the current salary coefficient and the position coefficient of Deputy Director or equivalent according to company rank as stipulated in the wage scales and pay grade charts issued together with Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government.

4. Production Instability Coefficient: at a rate of 15% of the job grade salary, position salary, or specialized and vocational salary.

Article 4. Midday meal system

1. Midday meal allowance: VND 20,000/person/day, the organization and implementation shall be carried out in accordance with Clause 1, Section IV of Circular No. 22/2008/TT-BLDTBXH dated October 15, 2008 of the Ministry of Labor, Invalids and Social Affairs guiding the midday meal system in state-owned companies.

2. Midday meal expenses shall be established and accounted for as a separate item in the construction project budget estimate.

Article 5. Payment of wages and wage allowances

1. Based on the labor cost budget and the degree of completion of work volume according to the construction progress of the project, the contractor of the construction project shall temporarily advance monthly wages for workers in accordance with the payment regulations of the unit.

2. Annually, based on the completed work volume and the corresponding wage fund, the contractor of the construction project shall settle the full amount of wages, allowances, and other benefits for workers in accordance with the payment regulations of the unit linked to productivity, quality, efficiency of work, and the contribution of workers to the overall efficiency of the unit.

Article 6. Financial Resources

The sources of funds for paying the benefits stipulated in Articles 3 and 4 of this Circular are as follows:

1. For workers and staff directly participating in the construction of the project, the costs are included in the construction project costs.

2. For workers and staff managing the project directly working at the site, the costs are included in the project management costs.

3. For workers and staff directly consulting, surveying, and designing the project, the costs are included in the construction project consultancy costs.

Article 7. Implementation Organization

1. The contractor of the construction project is responsible for determining the planned wage fund, actual wage fund, paying wages to workers, settling the wage fund and midday meal costs with the project owner.

2. The project owner is responsible for:

a) Establishing the labor cost budget within the total investment cost of the construction project based on the systems stipulated in this Circular and current guidelines on establishing and managing project investment construction costs issued by the Ministry of Construction. In cases where the total investment cost of hydroelectric construction projects has been approved before the effective date of this Circular, adjustments and supplements shall be made in accordance with State regulations.

b) Temporarily advancing and settling payments to the contractor of the construction project in accordance with the provisions.

Article 8. Effective Date

1. This Circular takes effect from October 1, 2011 until the Government issues new regulations.

2. For hydroelectric projects invested by Vietnam in Laos using state capital under 30%, the wage system, wage allowances, production instability coefficients, and midday meal system stipulated in Articles 3, 4, and 5 of this Circular may be applied as the basis for establishing labor cost budgets and paying wages to workers. During implementation, if there are any difficulties, please report to the Ministry of Labor, Invalids and Social Affairs for timely supplementary guidance.

During implementation, if there are any difficulties, please report to the Ministry of Labor, Invalids and Social Affairs for timely supplementary guidance./.