Circular No. 25/2005/TT-BLDTBXH guiding the implementation of salary adjustment and allowances for enterprises under Government Decree No. 118/2005/NĐ-CP dated September 15, 2005.

CIRCULAR

Guidelines for Adjusting Wages and Allowances in Enterprises

pursuant to Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government
 

Pursuant to Article 1 and Clause 3, Article 2 of Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government adjusting the national minimum wage, the Ministry of Labor - Invalids and Social Affairs guides implementation as follows:

I. SCOPE AND OBJECTS OF ADJUSTING WAGES AND ALLOWANCES

Article 1. Scope of Application:

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

- State-owned corporations:

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

+ State-owned investment and business corporations;

- Independent state-owned companies;

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

- Parent companies of State-owned corporations, companies operating under the parent company model;

- Subsidiaries according to Decree No. 153/2004/NĐ-CP dated August 9, 2004 of the Government.

b) Companies and enterprises operating under the Enterprise Law, including:

- Limited liability companies;

- Joint-stock company;

- Partnership company;

- Private enterprise.

c) Cooperatives, production cooperatives, farms, households, individuals, and other organizations employing labor under employment contracts.

The companies, enterprises, organizations, and individuals specified in points a, b, and c 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, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant in enterprises specified in point a, clause 1 above (excluding positions remunerated under contracts);

b) Management staff receiving wages in enterprises specified in points b and c, clause 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, clause 1, section I of this Circular:

a) Based 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 national minimum wage of 350,000 VND/month stipulated in Article 1 of Decree No. 118/2005/NĐ-CP dated September 15, 2005, to adjust wages and allowances as the basis for calculating unit labor costs; calculating contributions and benefits under social insurance; health insurance; wages during leave; holidays; annual leave, and other benefits as prescribed by labor laws. The adjustment of wages and allowances shall be calculated as follows:

Multiply the grade coefficient based on job title, professional coefficient, position coefficient assigned, allowance, and any differential retention coefficient (if applicable) with the national minimum wage of 350,000 VND/month.

Example:

Mr. Nguyen Van A is classified at the level of Specialist Grade 5, coefficient 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 wages, responsibility allowance, and attraction allowance is calculated as follows:

- Wage amount is:

3.58 x 350,000 VND/month = 1,253,000 VND/month

- Responsibility allowance amount is:

0.2 x 350,000 VND/month = 70,000 VND/month

- Attraction allowance amount is: 20% x (3.58 x 350,000 VND/month) = 250,600 VND/month.

b) For enterprises applying an additional adjustment factor not exceeding twice to calculate unit labor costs according to Decree No. 206/2004/NĐ-CP dated December 14, 2004; calculating the wage fund for Board of Directors members, General Directors, Directors according to Decree No. 207/2004/NĐ-CP dated December 14, 2004, must ensure compliance with the conditions prescribed in Decree No. 206/2004/NĐ-CP, Decree No. 207/2004/NĐ-CP, and Circular No. 07/2005/TT-BLDTBXH, Circular No. 08/2005/TT-BLDTBXH dated January 5, 2005 guiding the implementation of the aforementioned decrees.

c) Meal allowance during working hours for workers, employees, and civil servants working in state-owned enterprises as stipulated in Circular No. 15/1999/TT-BLDTBXH dated June 22, 1999, shall not exceed the national minimum wage of 350,000 VND/month.

2. For enterprises specified in points b and c, clause 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, clause 1, section II above;

b) If establishing their own wage scale, salary table, and allowance system according to Decree No. 114/2002/NĐ-CP dated December 31, 2002 and Circular No. 13/2003/TT-BLDTBXH dated May 30, 2003 guiding Decree No. 114/2002/NĐ-CP above, then base the adjustment on the national minimum wage of 350,000 VND/month to adjust the wages recorded in employment contracts; unit labor cost; calculating contributions and benefits under social insurance; health insurance; wages during leave; holidays; annual leave, and other benefits as prescribed by labor laws.

III. IMPLEMENTATION

1. Ministries, agencies equivalent to ministries, government agencies, provincial People's Committees, municipal People's Committees directly under the central government, and Chairmen of the Boards of Directors of State-owned corporations 91/TTg have the responsibility to direct, urge, and inspect enterprises to implement in accordance with the provisions of this Circular.

2. Development support funds and the Vietnam Deposit Insurance Corporation currently applying wage systems similar to those of state-owned enterprises as stipulated in Decision No. 17/2000/QĐ-TTg dated February 3, 2000, Decision No. 88/2001/QĐ-TTg dated June 5, 2001 of

3. For surplus workers as defined in Decree No. 41/2002/NĐ-CP dated April 11, 2002, and Decree No. 155/2004/NĐ-CP dated August 10, 2004, amending and supplementing Decree No. 41/2002/NĐ-CP, unemployment benefits for time worked in the state sector from October 1, 2005 onwards, job-seeking allowance, and 70% of salary for the remaining months not yet completed under the labor contract concluded shall be calculated based on the general minimum wage of 350,000 VND/month. When implementing these allowances, two additional columns corresponding to Table 9 and Table 10 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 shall be added.

4. This Circular takes effect fifteen days after its publication in the Official Gazette.

The adjustment of salaries, salary supplements, and other provisions stipulated in this Circular shall be applied from October 1, 2005.

In the course of implementation, if there are any difficulties, the Ministries, ministerial-level agencies, central agencies under the Government, provincial People's Committees, municipal People's Committees directly under the Central Government, and enterprises are requested to report to the Ministry of Labor - Invalids and Social Affairs for consideration and resolution.