JOINT CIRCULAR No. 383/TT/LB ON PAYING SALARIES TO OFFICIALS, WORKERS, AND SOLDIERS IN TWO INSTALLMENTS

CIRCULAR
Regarding the payment of salaries to cadres, workers, employees, and soldiers in two installments

For a long time, the monthly salary of most cadres, workers, employees, and soldiers has been paid once at the beginning of each month. As such, the state budget must allocate funds concentratedly, causing difficulties in balancing revenues and expenditures, regulating commodity circulation and currency, thereby affecting the common life of the people to some extent.

On the other hand, paying the salary for a given month at the beginning of that month does not comply with the principle of distribution according to labor under the socialist system, because to distribute according to labor, the salary must be paid after the period of work.

In compliance with Circular No. 229-TTg dated October 1, 1960, issued by the Prime Minister, after reaching consensus with the Ministry of Labor, the Ministry of Interior, the Salary Board, and the Vietnam General Confederation of Labor, the Joint Finance-Ministry of National Bank provides additional explanations on the payment of salaries to cadres, workers, employees, and the Army in two installments each month as follows:

1. After the implementation of the policy of paying salaries in two installments becomes routine and the family budgets of cadres, workers, employees, and soldiers have stabilized according to the new income method, the Joint Finance-Ministry of National Bank will gradually implement the government's policy of "paying salaries after labor."

Currently, there are some enterprises and agencies that pay salaries in two installments or in one lump sum but after the completion of work.

It is suggested that these enterprises and agencies continue to pay salaries after labor, but they can divide the payments into two installments, with the second installment being 15 days after the first. For example: Enterprise A currently pays its monthly salary on the last day of the month (the 30th or 31st), from now on it can divide the payment into two installments: half of the salary on the 15th, and the remaining half at the end of the month. Enterprise B currently pays its monthly salary on the 1st of the following month, now it can pay half of the salary on the 16th, and the remainder on the 1st of the following month.

2. Places where salaries are paid before work, or where a portion of the workforce receives salaries before completing their work, i.e., at the beginning of the month, should continue to pay the full amount or the portion on the same date (at the beginning of the month) as before, but only pay half of the monthly salary or 60%, with the remainder to be paid 15 days later. For example:

- Enterprise 2, Agency B, which previously paid salaries before work on the 3rd of the month, now on the 3rd of each month should only pay half or 60% of the salary, with the remainder to be paid on the 18th (15 days later).

- Agency C, which previously paid salaries before work on the 5th of the month, now on the 5th of each month should only pay half of the monthly salary or 60%. The remainder should be paid on the 20th (15 days later).

3. The payment of salaries in two installments does not include social allowances and welfare benefits such as child allowances, lactation allowances, etc., and other types of allowances. The main subjects of the policy of paying salaries in two installments are basic salaries and supplementary salaries.

Because families must spend all their monthly expenses for firewood, rice, school fees for children, childcare costs, electricity and water bills, newspapers, etc., at the beginning of the month, and also to avoid accountants and treasurers having to calculate numerous small amounts when dividing into two installments, the entire salary (basic and supplementary salaries):

- The first installment may be more than the second installment, but not exceeding 60% of the basic and supplementary salaries (salary and salary supplements).

- Any odd cents or fractions can be consolidated into one salary payment period (either the first or the second), without needing to be divided equally.

4. Rent and debts to agencies should be collected in one lump sum, either during the first or the second payment period.

5. Social allowances, including child allowances, disability allowances, and other additional incomes can be paid either at the beginning or the end of the month, depending on each agency or enterprise, without needing to be divided into two installments like salaries, provided that this does not cause inconvenience to the recipients and does not add to the workload of accountants and treasurers.

6. In special cases, where cadres, workers, employees, and soldiers are on long-term assignments, the entire monthly salary can be paid in one lump sum to the person on assignment. When transferring cadres within a month (mid-month rather than at the beginning), the original unit must settle the entire month's salary before the transferred individual leaves the old location.

7. The petty cash allowances for soldiers in the Army can be paid at the beginning of each month in one lump sum, as the amount allocated per person is small and does not need to be divided. Scholarships for full-time students and vocational trainees, as well as living expenses for the Army, must be paid in two installments.

During the implementation of this circular, if encountering difficulties, please report to the State Bank for resolution.