Circular 103/2016/TT-BTC guides the determination of demand, sources, and methods of expenditure to implement the adjustment of the statutory pay rate according to Decree 47/2016/ND-CP.
Article table of contents
The need for implementing the statutory pay rate is determined as follows:
- The total number of officials and public employees actually present at the reporting time does not exceed the total number of staff assigned by competent authorities.- The total number of people working under indefinite contracts according to policies. For the number of people exceeding the total staff assigned by competent authorities (or approved) at the reporting time, the agency or unit must ensure the funding needs to implement the statutory pay rate adjustment.- The need for funding to implement the statutory pay rate adjustment is determined based on salary rates according to rank, grade, and position; salary allowances according to prescribed policies (excluding night shift work, overtime, and allowances fixed at absolute levels); the lump sum allowance fund for non-professional activists at the commune, village, and neighborhood level; contributions according to policies (social insurance, unemployment insurance, health insurance, union dues); the amount of statutory pay rate increase.- Those with a salary coefficient of 2.34 or below who have received additional salary according to Decree 17/2015/ND-CP, if their total salary calculated according to the statutory pay rate of 1,210,000 VND/month in May 2016 is lower than their total salary and additional salary calculated according to the statutory pay rate of 1,150,000 VND/month of April 2016, shall receive the difference to match the total salary enjoyed in April 2016 and aggregate it into the increased salary demand.
Sources to ensure funding needs for implementing the statutory pay rate adjustment:
Central ministries, agencies:
- For state administrative agencies, the Communist Party, mass organizations:- Funds for wage reform up to the end of 2015 not used up will be transferred to 2016 (if any).- Use at least 40% of the revenue retained according to policies in 2016 (the remaining part after using it to implement decrees on statutory pay rate adjustments and allowances from 2011 onwards);- Use at least 40% of the difference between revenue and expenditure from service activities (after fulfilling obligations to the state budget according to regulations).- For public service providers:- Funds for wage reform up to the end of 2015 not used up will be transferred to 2016 (if any).- Use at least 40% of the revenue retained according to policies in 2016 (the remaining part after using it to implement decrees on statutory pay rate adjustments and allowances from 2015 and before). The health sector should use at least 35% of the revenue retained according to policies.- Use at least 40% of the difference between revenue and expenditure from service activities (after fulfilling obligations to the state budget according to regulations).
Provincial and municipality levels:
- Use the source saving 10% of the regular expenditure estimates for 2016 increased compared to the 2015 estimates (excluding wages and wage-related items) according to the Budget Allocation Decision of the Ministry of Finance;- Use the source saving an additional 10% of regular expenditure estimates for 2016 (excluding wages and wage-related items);- Funds for wage reform for 2015 not used up will be transferred (if any);- The remaining funds (if any) after ensuring wage needs and other allowances.
Method of disbursing funds for implementing the statutory pay rate adjustment:
- Units shall proactively use the prescribed sources to pay additional salaries for officials, public employees, and workers.- Provinces and centrally-administered cities with more significant funding sources than the funding need shall proactively use local budget revenue increases and save 10% of regular expenditures (the centralized portion) to supplement the budget for lower-level units and subordinate budgets lacking funds.- Poor localities with difficult budgets and funding needs for implementation greater than the prescribed funding sources shall receive temporary funding from higher-level budgets. Localities with source difficulties should send reports to the Ministry of Finance to request temporary funding.- Accounting and finalization of funds for salary and allowance implementation shall comply with the State Budget Law and current legal documents.
See more at Circular 103/2016/TT-BTC effective from August 15, 2016, replacing Circular 104/2013/TT-BTC.
