Circular No. 4/LDTT guiding the implementation of autonomy rights of grassroots economic units regarding wages and bonuses

CIRCULAR

Guidelines for the Implementation of Autonomy in Base Economic Units Regarding Wages and Bonuses

Implementing Decision No. 76-HĐBT dated June 26, 1986 of the Council of Ministers, after exchanging and reaching consensus on relevant points with the Ministry of Finance (Circular No. 859-TC/CN dated December 2, 1986) and the State Bank (circular dated November 28, 1986), the Ministry of Labor provides guidelines for the implementation of the rights and responsibilities of base economic units regarding wages and bonuses as follows:

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. The organization and implementation of wage systems, allowances, and bonuses at base units must adhere to the principle of distribution according to labor; respect the unity and discipline in the execution of state wage policies; ensure a harmonious combination of the interests of the state, enterprises, and workers.

2. Link wage and bonus payments closely with labor results and production efficiency. Direct the material interest of collective and individual workers towards increasing labor productivity, reducing product costs, increasing quantity and quality of products, saving raw materials, fuel, and materials, utilizing equipment and machinery effectively to complete and exceed production and business plans.

3. Enterprises must ensure timely and full payment of wages and bonuses to workers, creating conditions for workers and staff to stabilize their lives to focus on production and work.

II. SPECIFIC PROVISIONS

1. Based on fulfilling obligations to the state (delivering products, paying taxes...) according to legal regulations, the enterprise director has the right to use the following funds to pay wages and bonuses to workers and staff:

a) The wage fund determined according to Circular No. 3-TT/LB dated February 27, 1986 and Circular No. 12-TT/LB dated October 6, 1986 of the Ministry of Labor and the State Planning Commission.

b\) The bonus fund includes:

- Bonuses from profits obtained according to Decision No. 76-HĐBT of the Council of Ministers and detailed in Circulars No. 11-TC/CNA dated July 27, 1986, No. 29-TC/GTBĐ dated September 26, 1986, and Circular No. 34-TC/TNVT dated October 25, 1986 of the Ministry of Finance;

- Bonuses from the value of savings achieved by the enterprise compared to approved norms, state norms, and industry norms for materials, raw materials, fuel, fixed costs, management expenses, and circulation fees after awarding bonuses according to regulations to individuals and collectives contributing to savings;

- Bonuses for completing construction projects ahead of schedule;

- Bonuses for encouraging export production;

- Bonuses from the value of benefits due to innovations, technical improvements, production rationalization, and inventions after deducting research, experimental, and trial costs and awarding bonuses according to regulations to the authors of innovations and improvements;

- Bonuses from the value of benefits due to the application of advanced technology;

- Bonuses for products certified by authorized agencies and bonuses from the value of increased high-quality product volume compared to approved standards or plans;

- Bonuses received from higher-level agencies;

- Bonuses from partner units for successfully implementing economic contracts.

c) Remaining wage and reward funds from previous periods.

2. The enterprise director has the right to choose wage forms (time-based wages, piece-rate wages) and current wage systems suitable for each group or individual worker and staff member. Emphasis should be placed on correctly applying the wage contract system (contracted lump sum by process, project, or project component, contracted to groups and workers), collective product-based wages based on final production results, combined with material cost contracts and general production costs, combined with economic accounting of each workshop, team, and department.

For enterprise departments, gradually implement wage contracting based on strict staffing, clearly defining functions, tasks, workload, and time required for completion for each person and department.

The enterprise director has the right to choose or delegate to labor collectives such as teams, departments, and sections to discuss and select appropriate wage distribution methods for members based on each person's contribution to assigned plan implementation. The results of wage distribution must be announced to labor collectives, teams, departments, and sections.

3. With the total bonus fund obtained from sources mentioned in point 1b, Section II above, the enterprise director has the right to choose bonus distribution forms and set criteria, conditions, and bonus levels suitable for collectives and individuals. Emphasis should be placed on encouraging direct production workers, complex technical labor sectors, heavy and hazardous sectors, severely wounded veterans, and weak but outstandingly striving workers, and key production sectors.

4. Based on current state regulations, according to actual needs for job levels in production and work within the unit's wage fund, the enterprise director has the right:

a) To classify wages for workers and staff according to technical grade standards and vocational standards.

b) To decide on wage increases for workers and staff based on occupational skill assessments and recommendations from the enterprise's Wage Committee.

c) To determine wage levels for workers and staff temporarily transferred to other jobs or trades.

d) When hiring new employees, organize occupational skill tests for workers and vocational skill tests for staff. Classify wages based on test results and assigned tasks for newly hired personnel.

5. For wage allowances already regulated by the state, the director must directly pay them to workers and staff according to the eligible recipients and amounts, without retaining them for improper distribution. For the incentive rate of product-based wages for workers and the bonus rate from the wage fund for workers and staff as currently regulated by the state, the enterprise director has the right to reasonably adjust these rates for major primary and secondary workshops and different technically complex important products to avoid averaging and achieve the highest economic efficiency, but must announce this to workers and staff.

6. The director of the enterprise has the right to allocate a portion from the funds specified in point 1, Section II of this Circular to encourage workers and staff to take on additional tasks, more difficult work, or those who have made significant contributions to the enterprise, such as:

a) Allowance for兼任职业或工作；

b) Progressive pricing in cases where progressive piece-rate wage system needs to be applied;

c) Higher pricing for products exceeding quotas;

d) Higher wages for exceptionally talented workers and staff within the enterprise and individuals from other units who have signed contracts with the enterprise as consulting experts, concurrently serving collaborators, and performing other tasks that have truly contributed outstandingly to the enterprise;

đ) Payment for additional days off beyond the annual leave entitlement for outstanding workers, model workers, labor heroes, and severely disabled veterans;

e) Longevity bonus...;

g) Reward for workers and staff who find new sources of materials or new markets for products;

h) Reward for cooperative units that fulfill economic contracts with the enterprise well;

7. The director of the enterprise must ensure timely, full, and direct payment of wages at the workplace based on individual work results. Under no circumstances shall wages be paid late to workers and staff. In case of delayed payment, the enterprise director must pay interest at the rate applicable to non-fixed-term savings deposits to workers and staff.

8. For the immediate future, the State must ensure adequate supply of six essential goods for workers and staff. The enterprise director, in agreement with the enterprise council and the trade union executive committee, has the authority to manage the quantitative standards of these goods or convert them into monetary value based on local commercial prices, linking them to actual working days or monthly planned tasks assigned to each individual.

With such distribution, workers and staff need not return the standard goods. The money collected from them and its usage must be clearly and publicly disclosed.

9. The enterprise director is responsible for establishing specific regulations on wage and bonus payments for the enterprise, consistent with specific conditions and production characteristics of the enterprise. These internal rules must be approved by the workers' and staff's general assembly (or representative conference) and the implementation results must be publicly announced to all workers in the enterprise.

10. The collective of workers and staff have the right and responsibility to participate (through the trade union executive committee and other worker organizations) along with the enterprise director in deciding on wage and bonus regulations, ensuring their full implementation, and monitoring compliance with state policies and systems for workers.

III. IMPLEMENTATION.

1. The enterprise director is responsible for accurately accounting for the financial sources arising as stated in point 1, Section II of this Circular, registering the wage fund plan with the basic bank serving the enterprise to promptly advance funds monthly and quarterly to workers and staff when finalizing year-end settlements.

2. It is recommended that relevant sectors guide subordinate units to implement this Circular effectively; if additional provisions are needed to suit their specific production techniques and labor conditions, they should consult the Ministry of Labor.

3. Labor departments are responsible for assisting provincial, municipal, and central city People's Committees under the Central Government in urging, inspecting, and evaluating the implementation situation in various sectors and facilities within their territorial scope (including central and local enterprises). The Labor Departments and Provincial Labor Departments must regularly report the implementation status of this Circular to the Ministry of Labor for consolidation and reporting to the Council of Ministers.

4. This Circular takes effect from July 1, 1986. All previous regulations conflicting with this Circular are hereby abolished.