Circular No. 62/2010/TT-BTC guiding the determination of needs, sources, and methods of expenditure to implement adjustments to the minimum wage for cadres, civil servants, public officials, and armed forces, as well as adjustments to allowances for retired village cadres in 2010.

Article 1. General Provisions

1. This Circular stipulates the procedures for determining the need, source, and method of expenditure to implement the adjustment of the national minimum wage level according to Decree No. 28/2010/NĐ-CP for state agencies, state-owned public service units; agencies and units under the armed forces; Party agencies, political-social organizations, and occupational-political social organizations, social organizations, occupational-social organizations, non-governmental organizations, projects, and international organizations' agencies located in Vietnam with cadres, civil servants, and public officials assigned by the State to work within the state budget payroll; allowances for those working part-time at commune, village, and neighborhood levels according to Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government on the titles, number, and some policies for cadres, civil servants at communes, wards, towns, and part-time workers at commune levels and the adjustment of allowances for retired village cadres according to 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) as prescribed in Decree No. 29/2010/NĐ-CP; allowances for veterinary staff at commune level according to Circular No. 1569/TTg-NN dated October 19, 2007 of the Prime Minister.

2. Based on the provisions of Decree No. 28/2010/NĐ-CP and Decree No. 29/2010/NĐ-CP, ministries, ministerial-level agencies, government agencies, and other central-level agencies (hereinafter referred to as ministries and central-level agencies) and provincial-level municipalities directly under the central government have the responsibility to organize, guide, and aggregate the financial needs and sources to implement the adjustment of the national minimum wage level, the adjustment of allowances for retired village cadres, and the adjustment of allowances for part-time workers at commune, village, and neighborhood levels of agencies and units and their subordinate levels to submit to the Ministry of Finance according to specific provisions of this Circular.

3. Ministries and central-level agencies, People's Committees at all levels, budgetary units at all levels, and budget users have the responsibility to determine and allocate the sources to implement the adjustment of the national minimum wage level and the budget support (if any) to pay the new salaries for cadres, civil servants, and public officials of their units, allowances for retired village cadres, and allowances for part-time workers at commune, village, and neighborhood levels in accordance with the regulations and the provisions of this Circular.

4. The implementation, accounting, and settlement of funds for the adjustment of the national minimum wage level and allowances and subsidies shall be carried out in accordance with the 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. 28/2010/ND-CP and the adjustment of allowances for village cadres who have retired as prescribed in Decree No. 29/2010/ND-CP (hereinafter referred to as the financial requirements for implementing Decree No. 28/2010/ND-CP, 29/2010/ND-CP):

1. The total number of officials, civil servants, public employees and the number of village cadres who have retired to determine the financial requirements for implementing Decree No. 28/2010/ND-CP, 29/2010/ND-CP is the actual number present at the reporting time (the number present on May 1, 2010) and does not exceed the total number of positions assigned (or approved) by the competent authority in 2010. For the number of part-time workers at the commune, village, and neighborhood level to determine the support amount from the central budget according to the provisions of Article 13 and Clause 3, Article 19 of Decree No. 92/2009/ND-CP, this shall be implemented accordingly.

As for the additional positions in 2010 compared to the number of positions at the reporting time (if any), if within the total number of positions assigned (or approved) by the competent authority, the additional financial requirements for implementing Decree No. 28/2010/ND-CP, 29/2010/ND-CP for these positions will be consolidated and reported by the relevant 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 adjusting salaries in the following year.

As for the positions exceeding the total number of positions assigned (or approved) by the competent authority, the financial requirements for implementing Decree No. 28/2010/ND-CP, 29/2010/ND-CP for these positions shall be self-funded by the units from their own sources of funds as stipulated by law; they shall not be included in the financial requirements for implementing Decree No. 28/2010/ND-CP, 29/2010/ND-CP of the ministries, central agencies, and provinces/cities directly under the central government.

The specific total number of positions assigned (or approved) by the competent authority for the ministries, central agencies, and provinces/cities directly under the central government shall be determined similarly to the provisions at point 1.1.1, 1.1.2 of Clause 1.1, Section II of Circular No. 02/2005/TT-BTC dated January 6, 2005, issued by the Ministry of Finance on guiding the determination of needs, sources, and methods of expenditure for implementing salary reform for officials, civil servants, public employees, and armed forces (hereinafter referred to as Circular No. 02/2005/TT-BTC).

2. The financial requirements for implementing Decree No. 28/2010/ND-CP, 29/2010/ND-CP mentioned in this Circular shall be determined based on the salary levels according to rank, grade, and position; salary supplements according to the prescribed system (excluding night shift pay, overtime pay, and absolute amount-based supplements), contributions according to the prescribed system (social insurance, unemployment insurance, health insurance, trade union fees), and the increase in the national minimum wage level as prescribed in Decree No. 28/2010/ND-CP compared to Decree No. 33/2009/ND-CP according to the number of positions specified in Clause 1 of Article 2 above.

The financial requirements for implementing Decree No. 28/2010/ND-CP, 29/2010/ND-CP of the provinces/cities directly under the central government include:

- Additional funding due to the reclassification of salaries for individuals who are village-level cadres with a minimum educational qualification of a college degree or higher, part-time workers at the commune, village, and neighborhood level according to the provisions of Decree No. 92/2009/ND-CP dated October 22, 2009, on job titles, number of positions, and some systems and policies for cadres and civil servants at communes, wards, towns, and part-time workers at the commune level.

- Additional funding for allowances for village cadres who have retired as prescribed in Decree No. 29/2010/ND-CP.

- Responsibility allowances for members of party committees at all levels according to Decision No. 169-QD/TW dated June 24, 2008, of the Politburo.

- Increased activity fees for People's Council deputies at all levels.

- Additional salary funding for kindergarten teachers and health workers at the commune, ward, and town level within the adjusted staffing quota due to the increase in the national minimum wage level.

- Additional funding to support veterinary staff at the commune level equivalent to one-third of the current national minimum wage.

3. The increased salary due to the adjustment of the national minimum wage level for laborers not under state staffing quotas and whose salary is included in the product cost according to the regulations of public institutions operating in transportation, land administration, geology, etc.; the increased salary for laborers in units that have implemented cost allocation (such as Tax Authority, Customs, State Treasury, Vietnam Television, State Bank of Vietnam, etc.) and in decisions allowing cost allocation by the competent authority which has stipulated that during the allocation period, units must arrange within the allocated limit to ensure new policies and systems; the increased salary for staffing and labor in the trade union system at all levels: Implemented similarly to the provisions at point 1.2, Clause 1, Section II of Circular No. 02/2005/TT-BTC (not included in the financial requirements for implementing the adjustment of the national minimum wage level of the ministries, central agencies, and provinces/cities directly under the central government).

Article 3. Determining sources to ensure the funding needs for implementing Decree No. 28/2010/NĐ-CP and Decree No. 29/2010/NĐ-CP (hereinafter referred to as the funding sources for implementing Decree No. 28/2010/NĐ-CP and Decree No. 29/2010/NĐ-CP):

1. Principles regarding the use of funding sources in 2010 for implementing Decree No. 28/2010/NĐ-CP and Decree No. 29/2010/NĐ-CP: Implemented similarly to the provisions at point 2.1 clause 2 section II Circular No. 02/2005/TT-BTC dated January 6, 2005 issued by the Ministry of Finance.

2. Funding sources for implementing Decree No. 28/2010/NĐ-CP and Decree No. 29/2010/NĐ-CP in 2010:

a) Funding sources for implementing Decree No. 28/2010/NĐ-CP in 2010 of ministries and central agencies:

- For administrative state agencies, the Party, and mass organizations:

+ Using a minimum of 40% of the revenue retained according to the regime in 2010 (the remaining part after using to implement Decree No. 33/2009/NĐ-CP dated April 6, 2009, and Decree No. 166/2007/NĐ-CP dated November 16, 2007 in 2010).

+ Using the source of savings from 10% of regular expenditure budget in 2010 (excluding salaries, salary-like increases in 2009 according to the minimum wage stipulated in Decree No. 33/2009/NĐ-CP and salary system stipulated in Decree No. 204/2004/NĐ-CP) increased compared to the 2009 budget (the 2009 budget includes the budget assigned by the competent authority and additional funds for implementing salary increases according to Decree No. 33/2009/NĐ-CP – if applicable) for each agency.

+ Any sources for implementing the salary reform in 2009 that have not been fully utilized will be carried over to 2010 (if applicable).

- For state-owned public institutions and those of the Party and mass organizations:

+ Using a minimum of 40% of the revenue retained according to the regime in 2010; specifically, for the health sector, 35%, after deducting drug costs, blood, transfusion fluids, chemicals, replacement materials, consumables (the remaining part after using to implement 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, and Decree No. 03/2003/NĐ-CP dated January 14, 2003 in 2010).

+ Using the source of savings from 10% of regular expenditure budget in 2010 (excluding salaries, salary-like increases in 2009 according to the minimum wage stipulated in Decree No. 33/2009/NĐ-CP and salary system stipulated in Decree No. 204/2004/NĐ-CP) increased compared to the 2009 budget (the 2009 budget includes the budget assigned by the competent authority and additional funds for implementing salary increases according to Decree No. 33/2009/NĐ-CP – if applicable) for each public institution.

+ Any sources for implementing the salary reform in 2009 that have not been fully utilized will be carried over to 2010 (if applicable).

In cases where the sources specified in paragraph a clause 2 Article 3 above are less than the funding needs for implementing Decree No. 28/2010/NĐ-CP in 2010 as stipulated in Article 2 of this Circular, the central government budget will supplement the difference to ensure sufficient funding for ministries and central agencies.

In cases where the sources specified in paragraph a clause 2 Article 3 above exceed the funding needs for implementing Decree No. 28/2010/NĐ-CP in 2010 as stipulated in Article 2 of this Circular, ministries and central agencies shall self-fund the implementation of Decree No. 28/2010/NĐ-CP in 2010 as stipulated in Article 2 of this Circular; the remainder shall be used to implement new salary increases when the State continues to issue regulations; this remaining amount shall not be used for other purposes.

b) Funding sources for implementing Decree No. 28/2010/NĐ-CP and Decree No. 29/2010/NĐ-CP in 2010 of provinces and centrally governed cities:

- Using the source of savings from 10% of regular expenditure budget in 2010 (excluding salaries, salary-like increases in 2009 according to the minimum wage stipulated in Decree No. 33/2009/NĐ-CP and salary system stipulated in Decree No. 204/2004/NĐ-CP) increased compared to the 2009 budget (the 2009 budget includes the budget assigned by the competent authority and additional funds for implementing salary increases according to Decree No. 33/2009/NĐ-CP – if applicable).

- 50% increase in local budget revenue (excluding increases from land use fees) realized in 2009 compared to the 2009 budget.

- Sources for implementing salary reform up to the end of 2009 that have not been fully utilized will be carried over to 2010 (if applicable).

- The surplus (if any) after ensuring the funding needs for implementing salary reform according to Decree No. 93/2006/NĐ-CP dated September 7, 2006, and Decree No. 94/2006/NĐ-CP dated September 7, 2006, Decree No. 166/2007/NĐ-CP dated November 16, 2007, and Decree No. 184/2007/NĐ-CP dated December 17, 2007, Decree No. 101/2008/NĐ-CP dated September 12, 2008, Decree No. 33/2009/NĐ-CP dated April 6, 2009, and Decree No. 34/2009/NĐ-CP dated April 6, 2009 of the Government in 2010, from the following sources:

+ 50% increase in local budget revenue (excluding increases from land use fees) budgeted in 2008 compared to the 2007 budget assigned by the Prime Minister;

+ 50% increase in local budget revenue (excluding increases from land use fees) budgeted in 2009 compared to the 2008 budget assigned by the Prime Minister;

+ 50% increase in local budget revenue (excluding increases from land use fees) budgeted in 2010 compared to the 2009 budget assigned by the Prime Minister;

+ 10% savings from regular expenditure (excluding salaries, salary-like) budgeted for spending in 2007;

+ 10% savings from regular expenditure (excluding salaries, salary-like) budgeted for spending in 2008 increased compared to the 2007 budget;

+ 10% savings from regular expenditure (excluding salaries, salary-like) budgeted for spending in 2009 increased compared to the 2008 budget;

+ 40% of the revenue retained according to the regime in 2010 of administrative agencies and public institutions (specifically, for the health sector, 35%, after deducting drug costs, blood, transfusion fluids, chemicals, replacement materials, consumables);

+ The amount allocated from the central government budget in the 2010 budget to implement salary reform to the minimum monthly wage of 650,000 VND assigned by the Prime Minister for each province and centrally governed city.

In the case where the sources specified in paragraph b Clause 2 Article 3 above are less than the financial needs to implement Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP as stipulated in Article 2 of this Circular, the central budget will supplement the shortfall for provinces and centrally-administered cities to ensure sufficient funding for implementation.

In the case where the sources specified in paragraph b Clause 2 Article 3 above exceed the financial needs to implement Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP as stipulated in Article 2 of this Circular, the provinces and centrally-administered cities shall self-fund the implementation of Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP as stipulated in Article 2 of this Circular; the remaining funds shall be used to cover the additional salary system when the State continues to issue regulations; these remaining funds shall not be used for other purposes.

In the case where ministries, central agencies, and provinces and centrally-administered cities have surplus funds after ensuring the financial needs for salary reform according to the schedule, they must report to the Ministry of Finance for consideration and resolution according to the prescribed regulations. For localities that encounter difficulties in funding due to the inability to harmonize increased revenue between different levels of the budget during the implementation of salary reform, detailed reports should be submitted to the Ministry of Finance for consideration and handling.

3. The revenues retained under the provisions of paragraph a and b Clause 2 Article 3 above shall not be deducted for direct costs serving the collection work if such revenues are from activities or services invested in by the State or from activities or services under the exclusive rights of the State and have been guaranteed by the state budget for collection expenses (such as school fees retained by public schools; hospital fees retained by public hospitals after deducting drug costs, blood transfusion costs, chemical costs, replacement materials, consumable materials, etc.). Revenues retained under the provisions shall be deducted for direct costs serving the collection work if such revenues are from activities or services invested in by the State or from activities or services under the exclusive rights of the State but have not been guaranteed by the state budget for collection expenses (as provided for in Decree No. 57/2002/NĐ-CP dated June 3, 2002 of the Government detailing the implementation of the Law on Fees and Charges).

4. The funds to implement Decree No. 28/2010/NĐ-CP for the staffing and labor of the trade union system at all levels shall be paid from the 2% trade union fund; it shall not be included in the financial needs for implementing the increased salary and allowances of ministries, central agencies, and provinces and centrally-administered cities.

5. The funds to implement Decree No. 28/2010/NĐ-CP for the staffing and labor of the Vietnam Social Security System shall be guaranteed from social insurance revenues and growth interest as prescribed.

6. The funds to implement Decree No. 28/2010/NĐ-CP for labor in agencies and units that have implemented cost allocation, where the decision allowing cost allocation by the competent authority has stipulated that within the allocation period, the unit shall arrange within the allocated amount to ensure new policies and regulations (such as tax authorities, customs, state treasury, Vietnam Television, etc.), these agencies and units must self-fund the implementation of the new increased salary system within the total allocated budget.

Article 4. Reporting System on Demand and Funding Sources for Implementing Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP:

Ministries, central agencies, and provinces and centrally-administered cities have the responsibility to organize, guide, review, and compile reports on demand and funding sources for implementing Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP in 2010 and submit them to the Ministry of Finance no later than May 31, 2010 (including ministries, central agencies, and provinces and centrally-administered cities that have sufficient funding sources to implement).

(Ministries and central agencies shall submit reports on demand and funding sources using attached forms No. 1 and 3; provinces and centrally-administered cities shall submit reports on demand and funding sources using attached forms 2a, 2b, 2c, 2d, 2đ, 2e, 2g, 4a, 4b, and 4c).

Article 5. Methods of Expenditure for Implementing Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP:

1. For budget-using units with funding sources for implementing Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP exceeding the demand for funds to implement these decrees, they may proactively use these sources to pay salaries, allowances, and additional subsidies to cadres, civil servants, and public officials of their units according to prescribed regulations.

2. For ministries, central agencies, provinces, centrally-administered cities, and budget-using units with demands for funds to implement Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP exceeding the funding sources available for implementation according to this Circular:

- Based on the reports from ministries, central agencies, and provinces and centrally-administered cities, the Ministry of Finance will review and notify additional funding to ensure that ministries, central agencies, and provinces and centrally-administered cities have sufficient funding to implement Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP.

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

- Based on the aforementioned notification, local financial authorities at all levels will implement the budget adjustment to execute and record it in the targeted supplementary budget for 2010.

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

3. For ministries, central agencies, and provinces and centrally-administered cities with funding sources for implementing Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP exceeding the demand for funds to implement these decrees:

- Ministries, central agencies, and provinces and centrally-administered cities will direct and guide units and subordinate budgetary units with funding sources exceeding the demand for funds to implement Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP to proactively use these sources to pay additional salaries to cadres, civil servants, and public officials, additional subsidies to retired village cadres, and additional allowances to non-professional staff at the village, hamlet, and neighborhood levels, and veterinary officers at the village level according to prescribed regulations.

- Provinces and centrally-administered cities will proactively use increased local government revenue, saving 10% of regular expenses (the portion retained centrally) to supplement funding for implementing Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP for budgetary units at the same level and subordinate budgetary units that lack funding to implement these decrees according to the process similar to that stipulated in Clause 2 of Article 5 above.

4. While waiting for authorized bodies to supplement funding, higher-level budgets will provide advance funding to lower-level budgets that have not ensured sufficient funding for implementation; budget-using units may proactively use the 2010 budget already allocated and retained revenue according to regulations to promptly pay additional salaries to cadres, civil servants, and public officials, armed forces personnel, additional subsidies to retired village cadres, and additional allowances to non-professional staff at the village, hamlet, and neighborhood levels, and veterinary officers at the village level according to prescribed regulations. The advanced funding and the amount used will be reimbursed from the supplementary funding provided by the authorized body for implementing additional salaries and subsidies.

5. Accounting and Settlement: The accounting and settlement of funding for implementing additional salaries, subsidies for retired village cadres, allowances for non-professional staff at the village level, and allowances for veterinary officers at the village level shall be carried out according to the provisions of the State Budget Law and current legal documents.

Article 6. Implementation Organization

1. Based on the provisions of this Circular, ministries, central agencies, and provincial People's Committees and centrally-administered city People's Committees are responsible for organizing and guiding agencies, units, and subordinate levels to determine the demand and funding sources for implementing Decrees No. 28/2010/NĐ-CP and No. 29/2010/NĐ-CP in 2010.

Based on the specific situation of their own agencies and localities and the provisions of this Circular, heads of ministries, central agencies, provincial People's Committees, and centrally-administered city People's Committees shall specify the time and reporting forms for units and subordinate budgetary levels in accordance with the regulations on compiling and reporting to the Ministry of Finance in this Circular.

2. This Circular takes effect 45 days from the date of issuance. The regulations stipulated in this Circular shall be implemented from May 1, 2010. During the implementation period, if there are any difficulties, units are requested to report to the Ministry of Finance for prompt resolution./.