Circular No. 54/2011/TT-BTC guiding the determination of needs, sources, and methods of expenditure to implement adjustments to the national minimum wage and allowances for retired village cadres as stipulated in Decree No. 22/2011/NĐ-CP dated April 4, 2011 of the Government on the national minimum wage and Decree No. 23/2011/NĐ-CP dated April 4, 2011 of the Government adjusting pensions, social insurance allowances, and monthly allowances for retired village cadres.

CIRCULAR

Guidelines for determining needs, sources, and methods of expenditure to implement adjustments to the national minimum wage level and adjustments to allowances for village cadres who have retired in accordance with Decree No. 22/2011/NĐ-CP dated April 4, 2011 of At the proposal of the Government on the national minimum wage level and Decree No. 23/2011/NĐ-CP dated April 4, 2011 of the Government adjustingpensions, social insurance allowances, and monthly allowances for village cadres who have retired

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Pursuant to Decree No. 22/2011/NĐ-CP dated April 4, 2011 of the Government stipulating the national minimum wage level (hereinafter referred to as Decree No. 22/2011/NĐ-CP);

Pursuant to Decree No. 23/2011/NĐ-CP dated April 4, 2011 of the Government adjusting pensions, social insurance allowances, and monthly allowances for village cadres who have retired (hereinafter referred to as Decree No. 23/2011/NĐ-CP);

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance provides guidelines for determining needs, sources, and methods of expenditure to implement adjustments to the national minimum wage level for civil servants, public officials, and members of the armed forces in accordance with Decree No. 22/2011/NĐ-CP and adjustments to allowances for village cadres who have retired in accordance with Decree No. 23/2011/NĐ-CP as follows:

Article 1. General Provisions

1. This Circular stipulates the determination of needs, sources, and methods of expenditure to implement adjustments to the national minimum wage level under Decree No. 22/2011/NĐ-CP for state agencies, state-owned institutions; units under the armed forces; Party agencies, political-social organizations, and occupational-political social organizations, social organizations, social-occupational organizations, non-governmental organizations, projects, and international organizations based in Vietnam with civil servants, public officials, and members of the armed forces appointed by the State to work within the state budget and receiving salaries from the state budget according to the salary table prescribed by the State; allowances for those working part-time at the commune, village, and neighborhood levels in accordance with Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government on positions, number, and some policies for cadres, civil servants at communes, wards, towns, and part-time workers at the commune level and adjustments to allowances for retired village cadres in accordance with Decision No. 130-CP dated June 20, 1975 of the Council of Ministers and Decision No. 111-HĐBT dated October 13, 1981 of the Council of Ministers (hereinafter referred to as retired village cadres) in accordance with Decree No. 23/2011/NĐ-CP; allowances for veterinary staff at the commune level in accordance with Official Letter No. 1569/TTg-NN dated October 19, 2007 of the Prime Minister.

2. Based on the provisions of Decree No. 22/2011/NĐ-CP, Decree No. 23/2011/NĐ-CP, ministries, ministerial-level agencies, government agencies, other central-level agencies (hereinafter referred to as ministries, central-level agencies), and centrally-administered cities are responsible for organizing, guiding, and compiling financial needs and sources to implement adjustments to the national minimum wage level, adjustments to allowances for retired village cadres, and adjustments to allowances for part-time workers at the commune, village, and neighborhood levels of their agencies, units, and subordinate levels in accordance with specific provisions of this Circular and submit them to the Ministry of Finance.

3. Ministries, central-level agencies, People's Committees at all levels, budgetary units at all levels, and budget users are responsible for determining and allocating resources to implement adjustments to the national minimum wage level and budget support (if any) to pay new salaries to civil servants, public officials, and members of the armed forces of their units, allowances for retired village cadres, and allowances for part-time workers at the commune, village, and neighborhood levels in accordance with regulations and the provisions of this Circular.

Accounting and settlement of funds for adjustments to the national minimum wage level and allowances, supplements shall be carried out in accordance with established regulations and specific provisions of this Circular.

Article 2. Determining the financial requirements for implementing the adjustment of the national minimum wage level as prescribed in Decree No. 22/2011/NĐ-CP and the adjustment of allowances for village cadres who have retired as prescribed in Decree No. 23/2011/NĐ-CP:

1. The total number of civil servants, public officials, and village cadres who have retired to determine the financial requirements for implementing Decree No. 22/2011/NĐ-CP and Decree No. 23/2011/NĐ-CP shall be the actual number present at the reporting time (as of May 1, 2011) and shall not exceed the total number of authorized positions assigned (or approved) in 2011. Specifically, the number of persons working part-time at the village, hamlet, and neighborhood levels to determine the support amount from the central budget according to the provisions of Article 13 and Clause 3 of Article 19 of Decree No. 92/2009/NĐ-CP dated October 22, 2009, issued by the Government.

For any additional authorized positions in 2011 compared to the number reported (if any), if within the total number of authorized positions assigned (or approved) at the reporting time, the additional financial requirements for implementing Decree No. 22/2011/NĐ-CP and Decree No. 23/2011/NĐ-CP for these additional positions will be consolidated and reported by ministries, central agencies, and provinces/cities directly under the central government to the Ministry of Finance for consideration and resolution, or included in the financial requirements for implementing the salary adjustment for the following year.

For any additional positions exceeding the total number of authorized positions assigned (or approved) at the reporting time, the financial requirements for implementing Decree No. 22/2011/NĐ-CP and Decree No. 23/2011/NĐ-CP for these additional positions shall be self-funded by the units from their own sources according to the law; they shall not be included in the financial requirements for implementing Decree No. 22/2011/NĐ-CP and Decree No. 23/2011/NĐ-CP of ministries, central agencies, and provinces/cities directly under the central government.

The specific total number of authorized positions assigned (or approved) for ministries, central agencies, and provinces/cities directly under the central government shall be determined similarly to the provisions stipulated in Item 1.1.1, 1.1.2 of Point 1.1, Clause 1, Section II of Circular No. 02/2005/TT-BTC dated January 6, 2005, issued by the Ministry of Finance on guiding the determination of financial needs, sources, and methods of expenditure for implementing salary reform for civil servants, public officials, and armed forces personnel (hereinafter referred to as Circular No. 02/2005/TT-BTC). Specifically, the authorized positions for specialized village cadres and commune-level civil servants shall be determined within the quota as prescribed in Decree No. 92/2009/NĐ-CP dated October 22, 2009, issued by the Government regarding job titles, quantity, and some policies for village cadres and commune-level civil servants and those working part-time at the village level.

2. The financial requirements for implementing Decree No. 22/2011/NĐ-CP and Decree No. 23/2011/NĐ-CP mentioned in this Circular shall be determined based on the salary grade, rank, and position; the allowance according to the prescribed system (excluding night shift pay, overtime pay, and absolute amount allowances), contributions according to the system (social insurance, unemployment insurance, health insurance, trade union fees), and the increase in the national minimum wage level as prescribed in Decree No. 22/2011/NĐ-CP compared to Decree No. 28/2010/NĐ-CP according to the authorized positions specified in Clause 1 of Article 2 above.

The financial requirements for implementing Decree No. 22/2011/NĐ-CP and Decree No. 23/2011/NĐ-CP of ministries, central agencies, and provinces/cities directly under the central government include:

- Additional funding for health insurance contributions for the relatives of officers, non-commissioned officers, and soldiers in the armed forces of the Ministry of National Defense and the Ministry of Public Security.

- Additional funding for responsibility allowances for members of party committees at all levels according to Decision No. 169-QĐ/TW dated June 24, 2008, issued by the Politburo; monthly allowances for serving party committee activities at the provincial level according to Decision No. 3115-QĐ/VPTW dated August 4, 2009, issued by the Central Party Office.

- Additional funding for allowances for retired village cadres as prescribed in Decree No. 23/2011/NĐ-CP.
- Additional activity expenses for People's Council representatives at all levels.

- Funding to support the average two-thirds of the difference between the increased minimum wage of 830,000 VND/month and the previous minimum wage of 730,000 VND/month to implement the regulations for part-time workers at villages, towns, and neighborhoods, and hamlets and residential areas.

- Additional funding for the salaries of kindergarten teachers in villages, towns, and neighborhoods. - Additional funding for the salaries of village healthcare workers within the authorized positions.

- Additional funding to implement the allowance and subsidy system for civilian defense volunteers as prescribed in Joint Circular No. 102/2010/TTLT-BQP-BLDTBXH-BNV-BTC dated August 2, 2010, issued by the Ministry of National Defense, Ministry of Labor, Invalids and Social Affairs, Ministry of Home Affairs, and Ministry of Finance.

- Additional funding to implement the allowance system for village health workers.

- Additional funding to support veterinary staff at the village level.

3. Financial requirements for implementing various allowances and subsidies based on salary grades, ranks, or the national minimum wage, as issued and guided by competent authorities after May 1, 2011, by ministries, central agencies, and localities (if any) shall be consolidated into the financial requirements for implementing salary reform in 2011 and handled according to the provisions of this Circular.

4. Additional wages due to the adjustment of the general minimum wage for workers not subject to state quota allocation and wages calculated within the unit price of products according to the regulations of public service units operating in transportation, land administration, geology, etc.; additional wages for workers in agencies and units that have implemented cost-sharing (such as Tax Authority, Customs, Vietnam Television, etc.) and in decisions allowing cost-sharing issued by competent authorities during the cost-sharing period to ensure new policies; additional wages for staff in the trade union system at all levels: Implemented similarly to the provisions at point 1.2 clause 1 section II Circular No. 02/2005/TT-BTC (not included in the budget requirements for implementing the adjustment of the general minimum wage of central ministries, agencies, and provinces/cities directly under the central government).

Article 3. Determining the sources to meet the financial needs for implementing Decrees No. 22/2011/NĐ-CP and No. 23/2011/NĐ-CP:

1. Financial sources for implementing Decree No. 22/2011/NĐ-CP and No. 23/2011/NĐ-CP in 2011:

a) Financial sources for implementing Decree No. 22/2011/NĐ-CP in 2011 of central ministries and agencies:

- For state administrative agencies, political parties, and mass organizations:

+ Utilize the 10% savings from regular expenditure budgeted for 2011 (excluding salaries and salary-like allowances) allocated by the competent authority for each agency.

+ Utilize at least 40% of retained revenue according to the regime in 2011.

+ Any remaining funds from salary reform up to the end of 2010 that were not utilized will be carried over to 2011 (if applicable).

- For state-owned public service units and those of political parties and mass organizations:

+ Utilize the 10% savings from regular expenditure budgeted for 2011 allocated by the competent authority for each public service unit (the 10% savings from regular expenditure budgeted for 2011 increased compared to the 2010 budget after adjusting for the general minimum wage according to Decree No. 28/2010/NĐ-CP dated March 25, 2010 of the Government).

+ Utilize at least 40% of retained revenue according to the regime in 2011; specifically, for the health sector, 35%, after deducting drug costs, blood, transfusion fluids, chemicals, replacement materials, consumables (the remainder after using to implement Decree No. 28/2010/NĐ-CP dated March 25, 2010, Decree No. 33/2009/NĐ-CP dated April 6, 2009, Decree No. 166/2007/NĐ-CP dated November 16, 2007, Decree No. 94/2006/NĐ-CP dated September 7, 2006, Decree No. 118/2005/NĐ-CP dated September 15, 2005, Decree No. 204/2004/NĐ-CP dated December 14, 2004, Decree No. 03/2003/NĐ-CP dated January 14, 2003 in 2011).

In cases where the sources specified in point a clause 1 Article 3 above are less than the financial needs for implementing Decree No. 22/2011/NĐ-CP in 2011 as stipulated in Article 2 of this Circular, the central government budget will supplement the shortfall for central ministries and agencies to ensure sufficient funding.

In cases where the sources specified in point a clause 1 Article 3 above exceed the financial needs for implementing Decree No. 22/2011/NĐ-CP in 2011 as stipulated in Article 2 of this Circular, central ministries and agencies shall self-fund the implementation of Decree No. 22/2011/NĐ-CP in 2011; the surplus shall be used to implement new salary policies when further issued by the State; this surplus shall not be used for other purposes.

b) Financial sources for implementing Decree No. 22/2011/NĐ-CP and No. 23/2011/NĐ-CP in 2011 of provincial-level cities directly under the central government:

- 40% of retained revenue according to the regime in 2011 of administrative agencies and public service units (specifically, for the health sector, 35%, after deducting drug costs, blood, transfusion fluids, chemicals, replacement materials, consumables).

- Utilize the 10% savings from regular expenditure budgeted for 2011 (excluding salaries and salary-like allowances) allocated by the competent authority.

- 50% increase in local government revenue (excluding increases from land use fees) realized in 2010 compared to the 2010 budget.

- Any remaining funds from salary reform up to the end of 2010 that were not utilized will be carried over to 2011 (if applicable).

In cases where the sources specified in point b clause 1 Article 3 above are less than the financial needs for implementing Decree No. 22/2011/NĐ-CP and No. 23/2011/NĐ-CP as stipulated in Article 2 of this Circular, the central government budget will supplement the shortfall for provincial-level cities directly under the central government to ensure sufficient funding.

In cases where the sources specified in point b clause 1 Article 3 above exceed the financial needs for implementing Decree No. 22/2011/NĐ-CP and No. 23/2011/NĐ-CP as stipulated in Article 2 of this Circular, provincial-level cities directly under the central government shall self-fund the implementation of Decree No. 22/2011/NĐ-CP and No. 23/2011/NĐ-CP; the surplus shall be used to implement new salary policies when further issued by the State; this surplus shall not be used for other purposes.

In cases where provincial-level cities directly under the central government have significant surplus funds after ensuring the financial needs for salary reform according to the schedule, they shall report to the Ministry of Finance for consideration and resolution according to point c clause 2 Article 1, Decision No. 383/QĐ-TTg dated April 3, 2007 of the Prime Minister. For localities facing difficulties in funding due to inability to balance revenue increases between different levels of the budget while implementing salary reform, they shall submit detailed reports to the Ministry of Finance for consideration and handling.

2. The amount retained under the regime provided for in points a and b, Clause 1, Article 3 above shall not be deducted for direct expenses serving the collection work if such revenue is derived from activities or services invested in by the State or from activities or services that are the exclusive rights of the State and have been guaranteed by the state budget for the costs of collection activities, such as: the amount of tuition fees retained by public schools after deducting the costs of medicines, blood transfusions, chemical substances, replacement materials, consumable materials, etc.; the amount of medical fees retained by public hospitals after deducting the costs of medicines, blood transfusions, chemical substances, replacement materials, consumable materials, etc. The amount retained under the regime shall be deducted for direct expenses serving the collection work if such revenue is derived from activities or services invested in by the State or from activities or services that are the exclusive rights of the State but have not been guaranteed by the state budget for the costs of collection activities (for example: the amount of tuition fees retained by vocational driving schools can be deducted for fuel costs as the tuition fee already includes the cost of fuel, ...).

3. The funding to implement Decree No. 22/2011/ND-CP for the staffing and labor of the system of trade unions at all levels shall be guaranteed from the source of 2% union funds; it shall not be consolidated into the demand for funding to implement additional salary allowances of central ministries and agencies and provinces and centrally-administered cities.

4. The funding to implement Decree No. 22/2011/ND-CP for the staffing and labor of the State Bank, Vietnam Social Security, and staff implementing unemployment insurance benefits shall be guaranteed from the source of management expenses according to regulations.

5. The funding to implement Decree No. 22/2011/ND-CP for staffing and labor in agencies and units that have implemented cost allocation where the decision on cost allocation by the competent authority has stipulated that during the allocation period, the unit shall arrange within the allocated limit to ensure new policies and benefits (such as tax agencies, customs, Vietnam Television, ...) then these agencies and units must ensure the funding to implement the new salary increase within the total allocated budget.

6. From 2012 onwards, supplementary funding to implement salaries at the minimum wage level of 830,000 VND/month (after utilizing the funding sources for salary reform as prescribed) will be arranged in the budget estimates of ministries, central agencies, and provinces and centrally-administered cities.

Article 4. Reporting regime on the demand and funding sources to implement Decree No. 22/2011/ND-CP, Decree No. 23/2011/ND-CP:

Ministries, central agencies, and provinces and centrally-administered cities are responsible for organizing, guiding, reviewing, and consolidating reports on the demand and funding sources to implement Decree No. 22/2011/ND-CP, Decree No. 23/2011/ND-CP in 2011 and submit them to the Ministry of Finance no later than May 31, 2011 (including ministries, central agencies, and provinces and centrally-administered cities with sufficient sources to implement).

(Ministries and central agencies shall submit reports on demand and sources using forms 1, 3a, 3b, 3c attached; provinces and centrally-administered cities shall submit reports on demand and sources using forms 2a, 2b, 2c, 2d, 2đ, 4a, 4b, 4c attached).

Article 5. Method of disbursement to implement Decree No. 22/2011/ND-CP, Decree No. 23/2011/ND-CP:

1. For units using the budget with a larger funding source than the demand for funding to implement Decree No. 22/2011/ND-CP, Decree No. 23/2011/ND-CP, they may proactively use these sources to pay salaries, allowances, and additional subsidies to cadres, civil servants, and employees of their units according to the prescribed regime.

2. For ministries, central agencies, provinces, centrally-administered cities, and budget-using units with a greater demand for funding to implement Decree No. 22/2011/ND-CP, Decree No. 23/2011/ND-CP than the funding source to implement Decree No. 22/2011/ND-CP, Decree No. 23/2011/ND-CP as stipulated in this Circular:

- Based on the reports of ministries, central agencies, and provinces and centrally-administered cities, the Ministry of Finance will review and notify the supplementary funding so that ministries, central agencies, and provinces and centrally-administered cities have sufficient sources to implement Decree No. 22/2011/ND-CP, Decree No. 23/2011/ND-CP.

- On this basis, ministries and central agencies will notify supplementary funding to subordinate budget-using units; financial authorities at all levels in localities will report to the People's Committees at the same level to notify supplementary funding to budgetary units under their own level and to lower-level budgets to implement salaries, allowances, and additional subsidies according to the prescribed regime (after using the source to implement salaries, allowances, and additional subsidies according to the prescribed regime and still lacking sources).

- Based on the notification of supplementary funding mentioned above, financial authorities at all levels in localities (at commune level, the People's Committee of the commune) will withdraw the budget to implement and record in the targeted supplementary budget for 2011.

- Budgetary units at Level I are responsible for allocating the notification of supplementary funding mentioned above to subordinate budget-using units (after using the source to implement salaries, allowances, and additional subsidies according to the prescribed regime and still lacking sources). Budget-using units will withdraw money from the State Treasury within the supplemented amount together with proactively using retained revenue according to the regime, saving 10% of regular expenses to pay salaries, allowances, and additional subsidies to cadres, civil servants, and employees of their units according to the prescribed regime.

3. For ministries, central agencies, and provinces, centrally-administered cities with a larger funding source than the demand for funding to implement Decree No. 22/2011/ND-CP, Decree No. 23/2011/ND-CP:

- Ministries, central agencies, and provinces, centrally-administered cities shall instruct and guide units and sub-budgets with a larger funding source than the demand for funding to implement Decree No. 22/2011/ND-CP, Decree No. 23/2011/ND-CP to proactively use these sources to pay additional salaries to cadres, civil servants, and employees, additional subsidies to retired village cadres, and additional allowances to non-professional workers at the commune, village, and neighborhood levels, and commune veterinary officers according to the prescribed regime.

- The provinces and centrally governed cities shall proactively utilize their increased local budget revenues, save 10% of regular expenditures (the portion retained centrally) to supplement the funding for implementing Decrees No. 22/2011/NĐ-CP and No. 23/2011/NĐ-CP for budgetary units at the same level and subordinate budgets that lack sufficient funds to implement Decree No. 22/2011/NĐ-CP and No. 23/2011/NĐ-CP, following the procedure specified in Clause 2 of Article 5 above.

4. Pending approval from the competent authority to supplement the funding, the higher-level budget shall advance funds for the lower-level budget that lacks sufficient sources to implement the requirements; for areas facing difficulties with funding sources, they shall submit reports to the Ministry of Finance to request the advance of funds; budgetary units may proactively use the 2011 budget allocation and retained revenue according to regulations to promptly pay additional salaries to officials, civil servants, public employees, armed forces personnel, additional allowances for retired village cadres, and additional allowances for non-professional staff at the commune, village, ward levels, and veterinary officers at the commune level as stipulated. The advanced funds and the amounts already utilized will be reimbursed from the supplementary funding provided by the competent authority for implementing additional salaries and allowances.

5. Accounting and settlement: the accounting and settlement of funds for implementing additional salaries for retired village cadres, additional allowances for non-professional staff at the commune level, and additional allowances for veterinary officers at the commune level shall be carried out in accordance with the provisions of the State Budget Law and current legal documents.

Article 6. Implementation Organization

1. Based on the provisions of this Circular, the Ministries, central agencies, and People's Committees of the provinces and centrally governed cities shall be responsible for organizing and guiding agencies, units, and subordinate levels to determine the needs and funding sources for implementing Decrees No. 22/2011/NĐ-CP and No. 23/2011/NĐ-CP in 2011. In light of the specific circumstances of their own agencies and regions and the provisions of this Circular, the Heads of Ministries, central agencies, and provincial People's Committees shall specify the timeframes and reporting forms for units and subordinate budgets consistent with the regulations on consolidation and reporting to the Ministry of Finance as set forth in this Circular.

2. This Circular takes effect from June 15, 2011. The regulations stipulated in this Circular shall be implemented from May 1, 2011.

During implementation, if there are any issues, the Ministries, central agencies, and localities shall submit reports to the Ministry of Finance for timely review and resolution.