The Circular No. 104/2013/TT-BTC dated August 02, 2013 of the Ministry of Finance guiding the determination of demand, sources and methods of funding the adjustment of the basic wage level under the Decree No. 66/2013/ND-CP dated June 27, 2013 of the Government, and the adjustment of allowances for retired communal officials under the Decree No. 73/2013/ND-CP dated July 15, 2013 of the Government

THE MINISTRY OF FINANCE

The Circular No. 104/2013/TT-BTC dated August 02, 2013 of the Ministry of Finance guiding the determination of demand, sources and methods of funding the adjustment ofthe basic wage level under the Decree No. 66/2013/ND-CP dated June 27, 2013 of the Government, and the adjustment of allowances for retired communal officials under the Decree No. 73/2013/ND-CP dated July 15, 2013 of the Government

Pursuant to the Decree No.66/2013/ND-CP dated June 27, 2013 of the Government promulgating the basic wage level for cadres, civil servants, public employees and armed forces (hereinafter abbreviated as the Decree No. 66/2013/ND-CP);

Pursuant to the Decree No.73/2013/ND-CP dated July 15, 2013 of the Government adjusting the retirement pension, social insurance allowance and monthly allowance for retired communal officials (hereinafter abbreviated as the Decree No. 73/2013/ND-CP);

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

At the proposal of the Director of the State Budget Department;

The Ministry of Finance promulgates the Circular guiding the determination of demand, sources and methods of funding the adjustment of the basic wage level (replacing the minimum wage level) and the adjustment of allowances for retired communal officials in 2013 under the above Decrees as follows:

Article 1. General provisions

1. This Circular specifies the determination of demand, sources and methods of funding:

a) Adjust the basic wage level according to the Decree No. 66/2013/ND-CP dated June 27, 2013 of the Government for subjects working in agencies, organizations, units as stipulated under Article 1 and Article 2 of this Decree.

b) Adjust the allowance fund for part-time officials in communes, hamlets and residential groups according to the presumptive level as stipulated under the Decree No. 29/2013/ND-CP dated April 08, 2013 of the Government on amending and supplementing a number of articles of the Decree No. 92/2009/ND-CP dated October 22, 2009 of the Government on titles, numbers, entitlements and policies for cadres and civil servants in communes, wards, townships and part-time cadres at communal level.

c) Adjust the allowances for retired communal officialsaccording to the Decision No. 130-CP dated June 20, 1975 of the Government Council and the Decision No. 11-HDBT dated October 13, 1981 of the Council of Ministers (hereinafter abbreviated as the allowance for retired communal officials) according to the Decree No. 73/2013/ND-CP.

2. Based on the regulations under the Decree No. 66/2013/ND-CP, the Decree No. 73/2013/ND-CP and regulations under this Circular, Ministries, ministerial-level agencies, Government-attached agencies, other agencies at the central level(hereinafter abbreviated as ministries, central agencies) andprovincial/municipal People s Committeesshall have the responsibility:

a) Organize, guide and summarize the demand and source of expenditure to adjust the basic wage level of agencies, units and levels under its management; adjust the allowance for retired cadres at communal level; adjust the allowance fund for part-time cadres in communes, hamlets and residential groups according to the contracted level; and send to the Ministry of Finance.

b) Determine, arrange the source to adjust the basic wage level and the supporting source of State Budget (if any) to pay the new wage for cadres, civil servants; pay the allowances for retired cadres at communal level; pay the allowance for part-time cadres in communes, hamlet, residential group as stipulated under this Circular.

Article 2. Determine the demand of funding the adjustment of basic wage level according to the Decree No. 66/2013/ND-CP and the adjustment of allowance level for retired cadres at communal level in accordance with the Decree No. 73/2013/ND-CP

1. The total number of retired officials, cadres, civil servants to determine the funding demand under the Decree No. 66/2013/ND-CP, the Decree No. 73/2013/ND-CP is the real number of people available at the time of reporting (the number of people are available at the time of July 01, 2013).

For officials, cadres, civil servants, the number of people must not exceed the total number of full time positions assigned (or approved) by the relevant authorities in 2013.

For part-time officials, the total number of people working under the contractual regime with indefinite term in the state administrative agencies as stipulated under the Decree No. 68/2000/ND-CP dated November 17, 2000 of the Government on the application of the contractual regime to a number of jobs in the state administrative agencies and public service units (hereinafter abbreviated as the Decree No. 68/2000/ND-CP); the number of people working under the contractual regime with indefinite term in the Party’s agencies, political and social organizations as stipulated under the Decree No. 68/2000/ND-CP (not including the employees working in public-service units) to determine the demand of funding under the Decree No. 66/2013/ND-CP.

For increased number of people who had been recruited into State payrolls in 2013 compared with the number available at the time of July 01, 2013 (if any), if it is in the scope of the arranged number of people in State payrolls at the time of reporting, the increased demand of funding under the Decree No. 66/2013/ND-CP of these regular staff shall be summarized and reported by the ministries,central agencies, provinces and centrally run cities, andsend to the Ministry of Finance for consideration and approval or it shall be summarized into demand of funding for the wage of the next year (for provinces or centrally-run cities).

For the regular staff that exceed the assigned (or approved) number of regular staff at the time of reporting, the demand of funding under the Decree on adjusting the basic wage level of the staff in state payrolls shall be ensured by organizations, units as stipulated; not summarize into the demand of funding under the Decree on adjusting the basic wage level 2013 of ministries, agencies at the central level and provinces, centrally-run cities.

The total number of staff in state payrolls as assigned (or approved) of ministries, centralagencies and provinces, centrally run cities shall be determined as similarly as the regulations under sub-point 1.1.1 and 1.1.2, point 1.1, Clause 1, Section II of the Circular No. 02/2005/TT-BTC dated January 06, 2005 of the Ministry of Finance on guiding the determination of demand, sources and modes of payment for the reform of salaries of the public employees, public servants and armed forces (hereinafter abbreviated as the Decree No. 02/2005/TT-BTC). Full time cadres at the communal level shall be determined within the estimated number of staff in state payrolls as stipulated under Clause 1 Article 4 of the Decree No. 92/2009/ND-CP dated October 22, 2009 of the Government.

2. The demand of funding for the basic wage level according to the Decree No. 66/2013/ND-CP shall be determined based on the scale of salaries, level of salary, function; allowances as stipulated (not including the salary for working overtime at night, working extra hours and allowances that are regulated by the absolute level); the presumptive level for the allowance fund for part time cadres in communes, hamlet and residential group shall be implemented in accordance with the regulations under the Decree No. 29/2013/ND-CP; other payment according to the regime (social insurance, unemployment insurance, health insurance, union fee); the increased basic wage level as stipulated under the Decree No. 66/2013/ND-CP in comparison with the Decree No. 31/2012/ND-CP according to the number of regular staff as stipulated under Clause 1 Article 2 mentioned above.

3. The demand of funding under the Decree No. 66/2013/ND-CP of ministries, agencies at the central and provincial level, province and centrally run cities including the increased expenditure to implement the following regimes and policies:

a) Pay the health insurance for relatives of officers, non-commissioned officers, soldiers in armed forces of the Ministry of National Defense and the Ministry of Public Security;

b) Pay the responsibility allowances for the party committee members at all levels according to the Regulation No. 169-QD/TW dated June 24, 2008 of the Secretariat; monthly bonus regime to serve for the executive committee of the party at the provincial level according to the Decision No. 3115-QD/VPTW dated August 04, 2009 of the Office of the Party Central Committee;

c) The increasing operating fee of deputies to the People s Councils of all levels;

d) Support the increasing allowance fund towards part time cadres in communes, wards, townships, hamlets, residential groups due to the adjustments of basic wage level from 1,050,000 dong/month to 1,150,000 dong/month;

e) Support the salary for kindergarten teachers in communes, wards, townships based on the contractual regime according to the Decision No. 60/2011/QD-TTg dated October 26, 2010 of the Prime Minister;

4. The expenditure demand to implement the allowance regime based on the salary, scale of salary or basic salary promulgated by relevant authorities and guided after July 01, 2013 of ministries,agencies at the central leveland localities (if any) shall be summarized into the expenditure demand for the 2013 wage reform and handle the implementation sources as stipulated under this Circular.

Article 3. Determine the source to ensure the demand of funding under the Decree No. 66/2013/ND-CP and the Decree No. 73/2013/ND-CP

1. The source of capital under the Decree No. 66/2013/ND-CP in 2013 of ministries, agencies at the central level:

a) For state administrative agencies, the Party:

- Using 10% of saved regular expenditures in accordance with the estimates in 2013 allocated by competent authorities to each agency.

- Using at least 40% of revenues allowed retaining according to the 2013 regime (the remaining after using to implement the Decree No. 31/2012/ND-CP, the Decree No. 34/2012/ND-CP, the Decree No. 22/2011/NĐ-CP and the Decree No. 57/2011/ND-CP); and for revenues from services, using at least 40% of differences between revenue and expenditure from service operation.

- The sources for the 2012 wage reform that are residual will be transferred to 2013 (if any).

b) For public service units of the State, the Party, and Unions:

-Using 10% of saved regular expenditures in accordance with the estimates in 2013 allocated by competent authorities to each public service unit.

-Using at least 40% of revenues allowed retaining according to the 2013 regime; for revenues from services, using at least 40% of differences between revenue and expenditure from service operation. Especially for health sector, using at least 35% of revenues that retained under regime after deducting expenses for medicines, blood, and infusion, chemicals, consumable and replacing supplies (the remaining after using to implement the Decrees on wage, allowances from 2012 onwards).

- The sources for the wage reform that are residual at the end of 2012 till the end of 2012 will be transferred to 2013 (if any).

c) In cases the sources as stipulated under Clause 1 Article 3 are less than the expenditure demand to implement the Decree No. 66/2013/ND-CP as regulated under Article 2 of this Circular, the State Budget shall provide the differences for ministries, agencies  at the central level to ensure the implementation.

d) In case the sources as stipulated under Clause 1 Article 3 mentioned above are more than the expenditure demand to implement the Decree No. 66/2013/ND-CP in 2013 as regulated under Article 2 of this Circular, ministries, agencies at the central level must ensure the budget under the Decree No.  66/2013/ND-CP in 2013l the remaining shall be transferred into 2014 to ensure the basic wage level 1,150,000 dong/month with 12 months; not using the remaining funding source for other purposes.

2. The funding sources under the Decree No. 66/2013/ND-CP and the Decree No. 73/2013/ND-CP in 2013 of provinces, centrally run cities:

a) Using at least 40% of revenues allowed retaining according to the 2013 regime; for revenues from services, using at least 40% of differences between revenue and expenditure from service operation;  Especially for health sector, using at least 35% of revenues that retained under regime after deducting expenses for medicines, blood, and infusion, chemicals, consumable and replacing supplies (the remaining after using to implement the Decrees on wage, allowances from 2012 onwards).

b) Using 10% of saved regular expenditures in accordance with the estimates in 2013 allocated by competent authorities (10% of saved regular expenditures with the estimates in 2013 increases compared with the estimation of 2012 after calculating with the same level of wage and allowance).

c) Using 50% of increased revenues of local budget (exclusive of increased revenue from land use levies) implemented in 2013 in comparison with the 2012 revenue estimate as assigned by the Prime Minister (for this revenue, if the locality meets difficulty and have not yet balanced sources, revenue in 2012 in comparison with the estimation assigned by the Prime Minister is small; for localities, when implementing the wage reform if they meet difficulty on sources due to the imbalance of revenue among levels of local budget, the Ministry of Finance shall consider and determine the increased revenue to put into the sources for the 2013 wage reform; at the same time, report the results to the Prime Minister).

d) 50% of the 2013 estimated increased revenues of local budget (not including increased revenue from land use levies) in comparison with the 2012 revenue estimate.

e) The funding sources for the wage reform until the end of 2012 (after using to compensate for local budget 2012) that are residual shall be transferred to 2013 (if any).

If sources as stipulated under Clause 2 Article 3 mentioned above  less than the demand of funding under the Decree No. 66/2013/ND-CP as regulated under Article 2 of this Circular, the State Budget shall provide additional differences for provinces, centrally run cities to ensure the implementation.

If the sources as stipulated under Clause 2 Article 3 mentioned above are more than the demand of funding under the Decree No. 66/2013/ND-CP in 2013 as regulated under Article 2 of this Circular, provinces, centrally run cities must ensure the under the Decrees on adjusting the wage, allowance 2013; the remaining shall be transferred into 2014 to ensure the basic wage level 1,150,000 dong/month within 12 months; not using the remaining funding source for other purposes.

If provinces, centrally run cities that have the big sources that are residual after ensuring the demand of funding for the wage reform according to the roadmap, must report to the Ministry of Finance for consideration and handle as stipulated under Point c Clause 2 Article 1 of the Decision No. 383/QD-TTg dated April 03, 2007 of the Prime Minister.

3. The collected revenues that are retained according to the regime as stipulated under Clause 1 and Clause 2, Article 3 mentioned above are not allowed deducting the direct expenditure to serve for the collection is revenues from work, service invested by the State or from work, services that are under the privilege of the State and ensured by the State Budget for collection expenditure (the tuition fees retained for private schools…) The revenues retained according to the regime shall be deducted in direct expenses to serve for the collection if this revenue is revenue from work, service invested by the State or from work, service that are under the privilege of the State, but haven’t yet ensured on expenditure for collection by the State Budget. Besides, it must be noted some following points:

a) For tuition fee for full time students at public schools: 40% of revenues are used for the wage reform regime counted on the total collected tuition fee.

b) For tuition fee from in service training activities, and co-operative training activities and other training activities of public schools: 40% of collected fee are used for the wage reform regime counted on the total collected tuition fee after deducting the related expenses.

c) For revenues from service, co-operative activities and other revenues of public service units (besides the revenues according to the Ordinance on charges and fees): 40% of revenues are used for the wage reform regime counted on the total collected revenue after deducting the related expenses.

4. The funding source under the Decree No. 66/2013/ND-CP for persons working under the contractual regime with definite term in state administrative agencies, party’s agencies, political and social agencies applied according to the regulation under the Decree No. 68/2000/ND-CP shall be ensured by agencies, units from the estimated state budget assigned at the beginning of the year and other legal revenues.

5. The funding source under the Decree No. 66/2013/ND-CP for permanent staff, employees in the union system at all levels shall ensure the revenue source 2% of union fund; not summarize into the expenditure demand for the increased wage, allowance of ministries, agencies at the central level and provinces, centrally run cities.

6. The funding sources under the Decree No. 66/2013/ND-CP for permanent staff, employees of the State Bank, Vietnam Social Insurance and officers implementing the unemployment insurance regime shall be ensured from the expenditure source for the management as stipulated.

7. The funding sources under the Decree No. 66/2013/ND-CP for permanent staff, employees in agencies, units that implement the presumptive expenditures but in the Decision, it allows the presumptive expenditures by the relevant authorities that regulates within the time of implementing the presumptive expenditures, units shall self-arrange the presumptive expenditure rate to ensure the new policies (such as: Tax agencies, Customs agencies, Vietnam Television Station…), these agencies, units must ensure the expenditure for the new increased wage regime in the total presumptive expenditures.

8. By 2014, ministries, agencies at the central and local level shall continue to implement the wage reform regime as mentioned above to ensure the wage level at 1,150,000 dong/month for the whole year 2014; the additional funding source to implement the basic wage level 1,150,000 dong/month in 2014 (after units use the funding sources for the wage reform as stipulated) shall be allocated in the 2014 expenditure estimation of ministries, agencies at the central level and provinces, centrally run cities.

Article 4. Reporting regime on the demand and source of funding under the Decree No. 66/2013/ND-CP and the Decree No. 73/2013/ND-CP

All ministries, agencies at the central level and provinces, centrally run cities (including ministries, agencies at the central level and provinces, centrally run cities that ensured the source to implement) shall have the responsibility to organize, guide, approve and summarize the demand and source of expenditure to implement these above decrees in 2013 and send to the Ministry of Finance no later than August 15, 2013.

(Ministries, agencies at the central level send the report on the demand and source of expenditure according to the attached forms No. 1, 3a, 3b, 3c; provinces,  centrally run cities send the report on the demand and source of expenditure according to the attached forms No. 2a, 2b, 2c, 2 d, 2dd, 2e, 2g, 2h.1, 2h.2, 2h.3, 4a, 4b, 4c).

Article 5. Modes of payment under the Decree No. 66/2013/ND-CP, the Decree No. 73/2013/ND-CP

1. Units using the budget that the expenditure source is higher than the expenditure demand to implement the above Decrees shall actively use these sources to pay the wage, allowance for cadres, public servants of units as stipulated.

2. Ministries, agencies at the central level, provinces, centrally run cities that the expenditure source to implement the above Decrees is higher than the expenditure demand:

a) Ministries, agencies at the central level, provinces, centrally run cities shall direct and guide units that the expenditure source is higher than the expenditure demand to use the sources to pay the increased wage for cadres, public servants, the increased redundancy for retired cadres at the communal level and the increased allowance for part time cadres in communes, hamlet, residential group and vets at the communal level as stipulated.

b) Provinces, centrally run cities actively use the increased revenues of local budget, using 10% of saved regular expenditures to provide additional expenditure source for estimation units at the same level that funding is still insufficient.

3. Ministries, agencies at the central level, provinces, centrally run cities that the expenditure demand to implement the above Decrees is higher than the expenditure source as stipulated under this Circular:

a) For ministries, agencies at the central level:

- Based on the report of the ministries, agencies at the central level, the Ministry of Finance shall verify and send the notice on providing additional fund for ministries, agencies at the central level to have sufficient fund to implement.

- After receiving the notice from the Ministry of Finance, ministries, agencies at the central level shall send the notice on providing additional fund to units using the budget for the wage, allowances, increase redundancy as stipulated (after using the source for the wage, allowance, increased redundancy payment as stipulated but funding is insufficient).

- The level 1 budget-estimating unit shall have the responsibility to allocate the additional notification for units using the budget (after using the source for the wage, allowance, increased redundancy payment as stipulated but funding is insufficient). Units using the budget that withdraw money from the State Treasury in the scope of additional capital and actively use the revenue sources retained according to the regime using 10% of saved regular expenditures for the wage, allowance, increased redundancy payment to cadres, public servants of units as stipulated.

b) For provinces, centrally run cities: Based on the report on the demand and source of expenditure of provinces, centrally run cities, the Ministry of Finance shall consider and make the notification on providing additional fund for localities to have sufficient fund to implement.

4. During the time of waiting for the approval of providing additional fund from relevant authorities, higher-level budget units shall make pre-payment for lower-level budget unit that funding is not sufficient; for localities that meet difficulties on sources report in writing to the Ministry of Finance on making pre-payment for localities; units using the budget shall actively use the 2013 budget estimation that are assigned and the revenue source shall be retained according to the regime to promptly pay the wage, allowances, increased redundancy for cadres, public servants in armed forces and other subjects as regulated under this Circular. The prepaid amount and used amount shall be refunded the source that is equal to the additional amount for the wage, allowance, and increased redundancy payment of relevant authorities.

5. Accounting and settlement: the accounting and settlement for the wage, allowance, and increased redundancy payment to subjects as stipulated under this Circular shall be implemented in accordance with the State Budget law and other current legal documents.

Article 6. Implementation organization

1. Based on the specific situation of agencies, localities and regulations under this Circular, the Heads of ministries, agencies at the central level, the chairperson of People’s Committees of provinces and centrally run cities shall regulate on time, reporting form for units and levels in accordance with the regulations on the summary and report of the Ministry of Finance.

2. This Circular takes effect on September 20, 2013.

3. The regimes under this Circular shall be implemented since July 01, 2013.

In the course of implementation, if there are any arising problems, ministries and agencies at the central and local level should report timely to the Ministry of Finance for consideration and guidance.

For the Minister of Finance

Deputy Minister

Pham Sy Danh