Circular No. 92/2011/TT-BTC guides the provision of hardship allowances for workers in state-owned enterprises that have not been restructured and some other enterprises. The minimum allowance is VND 250,000/person/month, funded from the legitimate financial fund of the enterprise.
Scope of application
State-owned enterprises that have not been restructured (state-owned limited liability companies) and some other enterprises (outside the state sector). Workers with monthly income up to VND 2,200,000.
Key points
- Enterprises provide hardship allowances for workers with monthly income below VND 2,200,000, with a minimum of VND 250,000/person/month.
- Hardship allowances are funded from the legitimate financial fund of the enterprise, specifically the Welfare Fund and the Financial Reserve Fund (if available).
- The Chairman of the Board of Directors or the General Director of the company decides on the level of allowance and the list of workers eligible to receive it.
- Hardship allowances are recorded as production and business expenses of the enterprise, with a maximum of VND 250,000/person.
- Enterprises must compile, determine the actual amount spent, and retain documentation for tax settlement.
🌐 Social impact of this document
- Workers with low income will be supported with living expenses to improve their quality of life.
- Enterprises must adjust their financial plans, affecting profits and investment capacity.
- Creating fairness in resource allocation for workers.
❓ Frequently asked questions
What is the minimum hardship allowance?
The minimum hardship allowance is VND 250,000/person/month.
From which sources can enterprises allocate hardship allowances?
Enterprises may use the Welfare Fund, the Financial Reserve Fund, or post-tax profit to allocate hardship allowances.
Who decides the level of allowance and the list of workers eligible to receive it?
The Chairman of the Board of Directors or the General Director of the company decides.
Does the hardship allowance affect corporate income tax?
Yes, hardship allowances are recorded as production and business expenses, with a maximum of VND 250,000/person.
Full text
CIRCULAR
Guidelines for implementing hardship allowances for workers in enterprises pursuant to
Decision No. 471/QĐ-TTg dated March 30, 2011 of the Prime Minister
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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;
Implementing Decision No. 471/QĐ-TTg dated March 30, 2011 of the Prime Minister regarding hardship allowances for cadres, civil servants, public officials, members of the armed forces, retirees with low salaries, beneficiaries of preferential treatment for persons who have rendered meritorious service to the country, and poor households with difficult living conditions;
The Ministry of Finance provides guidelines for the implementation of hardship allowances for workers in enterprises as follows:
Article 1. 1. Principles, criteria, and allocation standards for state budget investment capital development phase 2016-2020 serve as the basis for planning medium-term and annual investment plans from the state budget for the period 2016-2020 at the national level, at all levels, and in all sectors and units using state budget funds. They also serve as the basis for managing, supervising, inspecting, and auditing the implementation of medium-term and annual investment plans.
This Circular applies to state-owned joint stock companies with a single member and state enterprises that have not been restructured. Other enterprises (outside the state sector) may apply the provisions of this Circular to provide hardship allowances to their workers.
The subjects eligible for hardship allowances under the guidelines set forth in this Circular are workers whose names appear on the enterprise's workforce list as of March 30, 2011, and who earn up to VND 2.2 million per month (excluding bonuses from post-tax profits of the enterprise, meal allowances, and allowances for hazardous, dangerous, or extremely hazardous working conditions).
Article 2. Amount of hardship allowance and determination of funding needs for hardship allowances for workers in enterprises.
1. Enterprises shall base their decision on lawful financial funds and the financial capacity of the enterprise to determine specific hardship allowances for workers, but the minimum amount shall be VND 250,000 per person. The hardship allowance amount for workers shall be excluded from contributions to social insurance, health insurance, unemployment insurance, and trade union fees.
2. Based on the number of workers eligible for hardship allowances as stipulated in Article 1 and the hardship allowance amount specified in Clause 1 of Article 2 of this Circular, the enterprise shall prepare a list and determine the total amount of hardship allowances for workers.
Article 3. Authority to decide on hardship allowances for enterprises
The Chairman of the Board of Directors or the General Director of the company without a Board of Directors for state-owned enterprises that have not been restructured; the Board of Members or the Chairman of the Company (for limited liability companies and partnerships); the Board of Directors (for joint-stock companies); the Owner of a Private Enterprise (for private enterprises), after consulting the views of the Trade Union organization of the enterprise (if any), shall approve the hardship allowance expenditure level and the list of workers entitled to hardship allowances.
Based on the approved hardship allowance amount and the list of workers entitled to hardship allowances, enterprises shall proactively implement the payment of hardship allowances to workers once in 2011.
Article 4. Accounting and settlement of hardship allowance expenditures
1. Enterprises may use lawful financial funds to provide hardship allowances to workers in accordance with Article 5 of Decision No. 471/QĐ-TTg dated March 30, 2011 of the Prime Minister. Lawful financial funds of enterprises, which are established from post-tax profits according to current laws, can be used to provide hardship allowances, specifically as follows:
a. For state-owned joint stock companies with a single member and state enterprises that have not been restructured, the source of hardship allowance expenditures includes the Welfare Fund (after obtaining the opinion of the grassroots trade union organization) and the Financial Reserve Fund at the end of March 31, 2011, including both the Welfare Fund and the Financial Reserve Fund formed from the post-tax profit of the enterprise in 2010.
b. For other enterprises, the source of hardship allowance expenditures for workers is the lawful financial funds of the enterprise established from post-tax profits (if any) at the end of March 31, 2011; if there is a shortage or no lawful financial funds, the enterprise shall use the post-tax profit of 2010 of the enterprise after distributing dividends to shareholders and contributors in accordance with current laws.
2. After using the above sources of funds to pay hardship allowances to workers, if there is still a shortage or the enterprise does not have these sources of funds to ensure the expenditure level decided by the enterprise, the enterprise may account for the unprovided hardship allowance expenditure as production and business costs. The unprovided hardship allowance expenditure accounted for as production and business costs shall be considered a reasonable expense when determining the taxable income of the enterprise, with a maximum of VND 250,000 per person.
3. Enterprises are responsible for compiling the actual total amount spent on hardship allowances for workers based on the list of workers entitled to hardship allowances approved by the competent authority as stipulated in Article 3 of this Circular; the payment list must be signed by the recipient; identifying the amount spent from the enterprise's lawful financial funds and the amount to be accounted for as production and business costs; retaining accounting records as the basis for cost accounting, preparing financial statements, and settling corporate income tax for 2011 in accordance with current regulations.
4. The accounting of hardship allowance expenditures as production and business activity costs must be supported by complete expenditure documentation as required by law.
Article 5. Implementation
This Circular takes effect from August 10, 2011.
During the implementation process, if there are difficulties or obstacles, enterprises should report to the Ministry of Finance for timely resolution./.
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