New Regulations on Autonomy for Public Scientific and Technological Organizations

A public non-business science and technology (S&T) organization that ensures its own regular expenditures is an organization with revenue from self-guaranteed operations covering all regular expenditures; or an organization that only provides services listed among public non-business services using the state budget in the field of S&T at prices and fees that fully cover regular costs (excluding fixed asset depreciation costs).

The level of self-guaranteed regular expenditure is calculated as (total non-business revenue/total regular expenditure) x 100%. The total non-business revenue and total regular expenditure are calculated based on the revenue and expenditure estimates of the first year of the stable period.

Annually, after fully accounting for various costs, paying taxes and other state budget contributions, any revenue surplus over regular expenditures, a public non-business S&T organization ensuring both regular and investment expenditures and those ensuring only regular expenditures is allowed to set up and use funds as prescribed in Clause 3, Article 8 of Decree No. 54/2016/ND-CP and according to the internal expenditure regulations of the unit.

For the reward fund and welfare fund, the maximum allocation shall not exceed 3 months of actual salary and wages in the year.

Regarding the implementation of additional income expenditures, based on the annual revenue and expenditure plan and the financial performance of the previous quarter of the unit’s activities, an interim allocation to the additional income fund (not exceeding 70% of the determined revenue surplus over expenditure per quarter) is made to supplement monthly income.

By the end of the year, before January 31 of the following year, the public non-business S&T organization determines the revenue surplus over expenditure of the previous year, continues to allocate funds as prescribed, and determines the amount for additional income payments from the additional income fund, according to the unit’s internal expenditure regulations to ensure that additional income for employees does not exceed the amount prescribed by policies.

Based on the final settlement of the public non-business S&T organization approved by the competent authority, if the actual revenue surplus over expenditure is higher than the self-determined amount, the public non-business S&T organization continues to allocate funds and make additional income payments as prescribed by policies and the unit’s internal expenditure regulations.

In the case where the actual revenue surplus over expenditure is lower than the self-determined amount, the excess amount allocated to the additional income fund and paid exceeds the allowed amount, this excess expenditure will be deducted from the unit’s reward fund and welfare fund balance.

Circular 90/2017/TT-BTC takes effect from October 28, 2017.

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