Circular No. 32/1999/TT-LDTBXH on guiding the implementation of Decision No. 198/1999/QD-TTg dated September 30, 1999 of the Prime Minister regarding wages for project management boards in construction investment.

CIRCULAR

Regarding guiding the implementation of Decision No. 198/1999/QĐ-TTg dated September 30, 1999 of the Prime Minister on salaries forproject management boards for investment construction

INVESTMENT CONSTRUCTION PROJECT

Pursuant to Decree No. 25/CP, Decree No. 26/CP dated May 23, 1993 of the Government and Decision No. 198/1999/QĐ-TTg dated September 30, 1999 of the Prime Minister on salaries for project management boards for investment construction, after receiving opinions from relevant ministries and sectors, the Ministry of Labor, Invalids and Social Affairs guides the implementation of salary systems for project management boards for investment construction as follows:

I/ APPLICABLE OBJECTS:

The subjects to which this applies are cadres and civil servants working at project management boards for investment construction, including preparatory project management boards for investment construction that meet the conditions of a project management board for investment construction (referred to as project management board), under various ministries, sectors, localities, and enterprises, specifically:

- Specialized project management boards under ministries;

- Specialized project management boards under localities;

- Regional project management boards under ministries, sectors, localities, or enterprises;

- Project management boards for a single project under ministries, sectors, localities, or enterprises;

II/ CONDITIONS FOR APPLICATION:

Project management boards must satisfy the following three conditions to apply the minimum additional salary coefficient prescribed in Decree No. 28/CP dated March 28, 1997 of the Government:

1/ The project management board is established according to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government.

2/ The salary fund for cadres and civil servants of the project management board is taken from the project management fee for investment construction.

3/ When applying the minimum additional salary coefficient to establish the salary fund does not increase the management costs of the project management board as stipulated currently (to be guided by the Ministry of Construction after reaching consensus with the Ministry of Planning and Investment and the Ministry of Finance).

III/ REGARDING SALARY GRADING AND ALLOWANCES FOR CIVIL SERVANTS OF PROJECT MANAGEMENT BOARDS

A. REGARDING SALARY GRADING:

1/ Cadres and civil servants working at project management boards under ministries, sectors, and localities shall be graded according to the administrative and public service salary scale issued together with Decree No. 25/CP dated May 23, 1993 of the Government;

2/ Cadres and civil servants working at project management boards under enterprises shall be graded according to the wage scale and salary table issued together with Decree No. 26/CP dated May 23, 1993 of the Government;

3/ Civil servants who transferred to work at project management boards and were previously graded according to the election or military service salary table as stipulated in Resolution No. 35/NĐ/UBTVQHK9 dated May 17, 1993 and Resolution No. 52/NQ/UBTVQHK9 dated December 7, 1993 of the Standing Committee of the National Assembly, Decision No. 69/QĐ-TW dated May 17, 1993 of the Politburo, and Decree No. 25/CP dated May 23, 1993 of the Government shall be regraded according to the guidance provided in Circular No. 06/1998/TTLT-BTCCBCP-BLĐTBXH-BTC dated October 20, 1998 of the Joint Office of the Government Organizational and Cadre Affairs Bureau - Ministry of Labor, Invalids and Social Affairs - Ministry of Finance.

4/ Civil servants who transferred to work at project management boards and were previously graded as General Manager, Deputy General Manager, or Chief Accountant in enterprises according to the wage table stipulated in Decree No. 26/CP dated May 23, 1993 of the Government shall be regraded according to the guidance provided in Circular No. 17/1998/TTLT-BLĐTBXH-BTC dated December 31, 1998 of the Joint Ministry of Labor, Invalids and Social Affairs - Ministry of Finance.

B. POSITION ALLOWANCES:

The position allowances for the Director and Deputy Director (or General Manager and Deputy General Manager) of project management boards are as follows:

1/ For project management boards under ministries and general administrations (Type I, Type II), depending on the scale of the project, they will receive position allowances equivalent to the level of departments under ministries and general administrations or offices under ministries and general administrations;

2/ For project management boards under provinces and centrally-administered cities, depending on the scale of the project, they will receive position allowances equivalent to the level of departments under provinces and centrally-administered cities or offices under provinces and centrally-administered cities;

3/ For project management boards under provincial departments and equivalents, they will receive position allowances equivalent to the office level of provincial departments;

4/ For project management boards under county-level departments and equivalents, they will receive position allowances equivalent to the office level under county-level departments;

5/ For project management boards under enterprises, they will receive position allowances equivalent to the department or office level of the enterprise category they belong to.

In cases where personnel have been enjoying higher position allowances before being reassigned to work at project management boards, such allowances will be retained.

IV/ APPLYING THE MINIMUM ADDITIONAL SALARY COEFFICIENT:

A. PRINCIPLES:

1/ Within the scope of the management funds as stipulated currently, project management boards have the right to choose the minimum additional salary coefficient (K₁and K₂) according to the guidance provided in Circular No. 13/LĐTBXH-TT dated April 10, 1997 of the Ministry of Labor, Invalids and Social Affairs.

2/ Project management boards can select the minimum additional salary coefficient within the range of 0.1 to 1.5 times the current minimum monthly salary (currently 144,000 VND/month) as follows:

- If there is significant cost savings, the minimum additional salary coefficient will be higher; if there is little cost savings, the minimum additional salary coefficient will be lower; if there is no cost savings, the minimum additional salary coefficient will not be applied.

- In cases where project management boards have exceeded the total management fund for salaries as stipulated, they must refund the excess salary amount.

B. DETERMINING THE PLANNED SALARY FUND:

1/ Calculation formula:

? V_kh = L_db x TL_{Maximum Downhill Gradient} x (H_cb + H_kct ) x 12 months

Where:

-_db: Authorized staff is the number of staff required to complete the project management tasks approved by the competent authority. Determination method according to the guidance provided in Circular No. 14/LĐTBXH-TT dated April 10, 1997 of the Ministry of Labor, Invalids and Social Affairs;

- LT_{Maximum Downhill Gradient}: Minimum salary chosen by the project management board based on the adjustment coefficient as follows:

+ Industry-wide adjustment coefficient is 1.2;

+ Regional adjustment coefficient: 0.3 applies to project management boards located in Hanoi and Ho Chi Minh City; 0.2 applies to project management boards located in central cities and industrial zones; 0.1 applies to project management boards located in other provinces.

The method of calculating the actual minimum salary is carried out according to the guidance provided in Circular No. 13/LĐTBXH-TT dated April 10, 1997 of the Ministry of Labor, Invalids and Social Affairs.

- Central agencies of political-social organizations;_cb: Average job grade coefficient;

- Central agencies of political-social organizations;_kctThe average coefficient of subsistence allowances.

Example 1: Project Management Board A has a fixed workforce of 36 people; the average job grade salary coefficient is 3.1; the average allowance coefficient is 0.15; the chosen minimum wage level is 316,000 VND/month. The planned payroll fund is:

36 people x 316,000 VND/month (3.1 + 0.15) x 12 months = 443.7 million VND/year.

2/ Annually, along with preparing financial revenue and expenditure plans, project management boards must prepare their annual payroll fund plan. If the expenditure plan (including payroll expenses) exceeds the allowable management expense amount as stipulated, then the planned payroll fund must be re-established to ensure that total expenditures do not exceed the total allocated funds.

Example 2: Project Management Board A has an allocated management cost (including payroll) of 1.4 billion VND. The planned payroll fund determined according to Example 1 above is 443.7 million VND, other planned expenses are estimated at 1 billion VND. Thus, the total planned expenditure of the board is 1.443.7 billion VND, exceeding the allocated amount by 43.7 million VND (1.443.7 billion VND - 1.4 billion VND). To comply with the principle mentioned above, the plan must be revised and the planned payroll fund reduced from 443.7 million VND to 400 million VND (443.7 million VND - 43.7 million VND) so that total expenditures are 1.4 billion VND without exceeding the total allocated funds of 1.4 billion VND.

Therefore, the planned payroll fund will be 400 million VND.

V. IMPLEMENTATION

1/ Based on the guidelines set forth in this Circular, ministries, sectors, and localities shall direct project management boards to reasonably arrange and organize labor, establish staffing levels and planned payroll funds, and submit for approval by competent authorities before implementation.

2/ Project management boards are responsible for establishing the planned payroll fund and the salary regulation of the board, which must be submitted for approval by competent authorities before implementation. The salary regulation shall be established in accordance with Circular No. 13/LDTBXH-TT dated April 10, 1997, and Circular No. 4320/LDTBXH-TL dated December 29, 1998, issued by the Ministry of Labor, Invalids, and Social Affairs.

3/ For officials and civil servants seconded to work at project management boards, they shall receive salaries from the dispatching agency. If the salary at the dispatching agency is lower than the salary at the project management board, they shall receive an additional amount equal to the difference in salary working at the project management board. The specific amount is calculated by subtracting the salary received from the dispatching agency from the salary at the project management board.

4/ For officials and civil servants concurrently holding project management positions, they may choose to receive the salary corresponding to the position with the highest salary level. There shall be no additional concurrent position allowance.

5/ The total payroll fund paid out in a year shall not exceed the approved planned payroll fund. In cases where costs incurred during the year exceed the total allocated funds already approved, the payroll fund must be reduced until total expenditures do not exceed the total approved funds.

6/ This Circular takes effect from October 15, 1999.

During implementation, if there are any difficulties, ministries, sectors, provincial People's Committees, and project investment construction management boards are requested to report to the Ministry of Labor, Invalids, and Social Affairs for consideration and resolution.