Vietnam: Grounds for determining cost of labor constituting prices of public products and services

Grounds for determining cost of labor constituting prices of public products and services prescribed in Appendix II and prices of public non-business services prescribed in Table 02 in Appendix I enclosed with Decree No. 32/2019/ND-CP of Vietnam’s Government are guided in Article 3 of Circular No. 17/2019/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, specifically as follows:

- The cost of labor that constitutes the prices of public products and services shall be determined on the basis of the labor productivity norms (included in economic - technical, labor and cost norms) adopted by ministries, regulatory authorities and provincial people’s committees, salaries and other costs relating to direct workers, specialized workers, clerks, attendants, and managers of enterprises that supply public products and services.

- Salaries paid to direct workers, specialized workers, clerks and attendants shall be determined by multiplying grade or rank-based salary coefficients, allowance coefficients of workers who directly engage in the production or supply of public services by the statutory pay rate stipulated by the Government and the region-based indexing factor.

- Salaries paid by managers of enterprises (including Chairpersons of Board of Directors or Board of Members or Presidents of companies; members of Board of Directors or Board of Members; heads of Board of Supervisors; Supervisors; General Directors or Directors; Deputy General Directors or Deputy Directors; Chief Accountants) shall be determined on the basis of base salaries which are subject to the rank of corporations or companies.

- Other costs included in the cost of labor such as compulsory social insurance, health insurance and unemployment insurance contributions, and union dues payable by employers shall be determined in accordance with law regulations; costs of meals for shift workers and other benefits provided for each specific group of workers (if any) shall comply with law regulations.

View full text in Circular No. 17/2019/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, which takes effect from December 21, 2019.

Thu Ba

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