Joint Circular of the Ministry of Labor - Invalids and Social Affairs and the Ministry of Finance No. 32/2000/TTLT-BLDTBXH-BTC dated December 29, 2000 guiding the implementation of adjustments to the minimum wage and allowances in enterprises.

JOINT CIRCULAR

Guidelines for Adjusting Minimum Wages and Allowances in Enterprises

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Pursuant to Clause 1, Article 1 of Decree No. 77/2000/NĐ-CP dated December 15, 2000 of the Government on adjusting minimum wage levels, allowances, and living expenses for those receiving salaries, allowances, subsidies, and living expenses, the Ministry of Labor - Invalids and Social Affairs and the Ministry of Finance jointly issue guidelines for adjusting minimum wages and allowances in enterprises as follows:

I. APPLICABLE OBJECTS

- Workers employed in state-owned enterprises operating under the Law on State-Owned Enterprises, including production and business enterprises; public service enterprises; enterprises under armed forces; organizations and units permitted to engage in production, business, and services under administrative agencies, public institutions, the Party, mass organizations, and self-financing people's associations;

- Workers employed in enterprises operating under the Enterprise Law, including joint-stock companies, limited liability companies, partnerships, and private businesses (the aforementioned organizations are collectively referred to as enterprises).

II. CALCULATION OF SALARY LEVELS

1. For enterprises currently applying wage scales and allowances established by the State, based on the wage coefficient and allowance levels stipulated in Decrees No. 25/CP and 26/CP dated May 23, 1993, and Decree No. 110/1997/NĐ-CP dated November 18, 1997 of the Government, and the minimum wage level specified in Clause 1, Article 1 of Decree No. 77/2000/NĐ-CP dated December 15, 2000 of the Government, the salary and allowance levels serving as the basis for calculating social insurance, health insurance, overtime pay, night shift pay, stoppage pay, annual leave pay, and other benefits prescribed by the State shall be recalculated as follows:

a) Recalculating Salary Levels:

b) Recalculating Allowance Levels:

- For allowances calculated based on the minimum wage:

- For allowances calculated based on wage grades, positions, specialties, and professions:

c) Recalculating the Level of Wage Differential Retention Coefficient:

d) For industries where the State has prescribed bonus systems within the wage fund, they shall be recalculated based on the minimum wage of 210,000 VND/month.

2. For state-owned enterprises applying an adjustment factor not exceeding 1.5 times the general minimum wage set by the State (210,000 VND/month from January 1, 2001) as the basis for calculating unit labor costs, they must ensure the conditions stipulated in Article 1 of Decree No. 28/CP dated March 28, 1997 of the Government and Circular No. 13/LĐTBXH-TT dated April 10, 1997 of the Ministry of Labor - Invalids and Social Affairs guiding methods for building unit labor costs and managing wages and income in state-owned enterprises.

3. For enterprises that independently establish wage scales and tables in accordance with labor laws, based on the minimum wage of 210,000 VND/month, enterprises shall recalculate the salary levels recorded in employment contracts, serving as the basis for payment, and recalculate social insurance, health insurance, overtime pay, night shift pay, stoppage pay, annual leave pay, and other benefits prescribed by the State.

4. The meal allowance for workers and officials working in state-owned enterprises, as stipulated in Circular No. 15/1999/TT-BLĐTBXH dated June 22, 1999 of the Ministry of Labor - Invalids and Social Affairs, shall not exceed the minimum wage of 210,000 VND/month from January 1, 2001.

III. IMPLEMENTATION

1. Ministries managing sectors and fields, People's Committees of provinces and centrally governed cities, and Chairmen of Management Councils of State Corporations 91/TTg are responsible for directing, urging, and inspecting enterprises to comply with the provisions of this Circular.

2. For state-owned enterprises, when determining unit labor costs and calculating midday meals based on the minimum wage of 210,000 VND/month in annual production and business plans, active measures should be taken to increase labor productivity, improve efficiency, link increases in workers' income with profit increases, and contributions to the State as prescribed in relevant documents.

3. This Circular takes effect from January 1, 2001. Previous regulations contrary to the provisions of this Circular are abolished.

In the course of implementation, if there are any difficulties, ministries managing sectors and fields, People's Committees of provinces and centrally governed cities, and enterprises are requested to report to the joint Ministry of Labor - Invalids and Social Affairs and Finance for consideration and resolution.